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Scholar Education Group (HK:1769)
:1769
Hong Kong Market

Scholar Education Group (1769) AI Stock Analysis

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HK:1769

Scholar Education Group

(1769)

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Neutral 62 (OpenAI - 5.2)
Rating:62Neutral
Price Target:
HK$2.00
â–¼(-6.98% Downside)
Action:ReiteratedDate:11/25/25
The overall stock score reflects a solid financial performance with strong revenue and profit growth, despite some cash flow inconsistencies. Technical analysis indicates a bearish trend, with the stock trading below key moving averages and approaching oversold levels. Valuation metrics suggest the stock is reasonably priced with an attractive dividend yield, making it appealing for income-focused investors.
Positive Factors
Strong revenue growth
Revenue growth near 24% indicates a durable top-line expansion driven by demand for tutoring and test-prep services. Sustained revenue momentum supports capacity expansion, reinvestment in curriculum and tech, and provides a broader base to absorb cyclicality over the next 2–6 months.
Diversified tutoring model & online capability
A mix of one-on-one, group and online offerings plus technology partnerships creates multiple revenue streams and scale potential. Online capabilities raise operating leverage, broaden geographic reach, and reduce dependence on physical locations, strengthening durability of cash flows.
Healthy equity position & improving ROE
A strong equity ratio and improving return on equity signal prudent capital structure and effective use of shareholders’ funds. This financial flexibility supports investment in growth initiatives and cushions the business against short-term shocks over the medium term.
Negative Factors
Cash flow inconsistency
Variable free cash flow and a reported zero cash flow in the latest year undermine cash conversion reliability. Persistent cash volatility could limit the company’s ability to fund expansion or repay liabilities without external financing, stressing operations over months.
Material liabilities on the balance sheet
Noted significant liabilities increase leverage and liquidity risk. Higher obligations can constrain financial flexibility, raise refinancing or interest exposure, and reduce capacity for strategic investments or margin-supporting initiatives during adverse conditions.
Operational margin and EPS volatility
Fluctuating EBIT/EBITDA margins and a steep EPS contraction point to inconsistent operational efficiency or cost structure sensitivity. Margin and earnings volatility impair long-term profitability predictability, complicating reinvestment planning and stakeholder confidence.

Scholar Education Group (1769) vs. iShares MSCI Hong Kong ETF (EWH)

Scholar Education Group Business Overview & Revenue Model

Company DescriptionScholar Education Group, an investment holding company, provides K-12 after-school education services in the People's Republic of China. The company offers a suite of after-school education services through its academic preparation program and early primary education program. It delivers academic preparation program under the Sheng Xue brand, which offers classes to students in grade one through grade 12 in school academic subjects; and early primary education program under the Le Xue brand that provides childhood education courses and hobby courses, such as languages and performing arts to students from grade one to grade three. As at 31 December 2020, the company operated 152 learning centers across twelve cities in Guangdong, Jiangsu, and Zhejiang Provinces. It also engages in the Internet and software technology development and services. The company was founded in 2012 and is headquartered in Shenzhen, the People's Republic of China.
How the Company Makes MoneyScholar Education Group generates revenue primarily through its tutoring services, which include one-on-one sessions, group classes, and online courses. The company charges fees for its tutoring services, which vary based on the type of program and duration. Additionally, it may earn income from selling educational materials and resources, as well as through partnerships with schools or educational institutions that may provide referrals or bundled services. The company's strategic partnerships with technology providers may also contribute to its earnings by enhancing its online learning capabilities and expanding its market reach.

Scholar Education Group Financial Statement Overview

Summary
Scholar Education Group is demonstrating a robust growth trajectory with strong revenue and profit growth, underpinned by effective cost management. The balance sheet is stable with a healthy equity position, although liabilities require careful monitoring. Cash flow generation remains positive but with recent inconsistencies that need attention. Overall, the company is financially sound with areas to watch.
Income Statement
75
Positive
Scholar Education Group shows a strong revenue growth trend, with a substantial increase from 2022 to 2024. Gross profit margin and net profit margin are solid, indicating effective cost management and profitability. However, there is some volatility in EBIT and EBITDA margins, suggesting fluctuating operational efficiency.
Balance Sheet
70
Positive
The balance sheet reflects a healthy equity position with a strong equity ratio and a manageable debt-to-equity ratio. The company's return on equity has improved significantly in recent years, pointing to effective use of shareholder funds. However, the presence of significant liabilities warrants caution.
Cash Flow
65
Positive
The company's free cash flow has shown variability, although the overall trend is positive. The operating cash flow to net income ratio indicates solid cash generation from operations. However, zero reported cash flow in the latest year raises some concerns about cash flow stability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue892.61M852.33M570.61M402.08M831.73M749.09M
Gross Profit306.81M333.39M238.55M138.69M312.68M247.09M
EBITDA161.04M187.27M178.82M56.22M144.24M59.87M
Net Income125.93M145.65M85.99M54.41M-26.61M48.94M
Balance Sheet
Total Assets1.30B1.33B1.03B754.92M760.57M1.67B
Cash, Cash Equivalents and Short-Term Investments490.57M502.52M473.63M416.03M391.77M741.53M
Total Debt301.99M326.99M175.09M116.93M182.40M656.81M
Total Liabilities583.16M692.58M579.87M383.52M443.02M1.13B
Stockholders Equity717.57M635.11M454.82M371.40M317.95M538.04M
Cash Flow
Free Cash Flow99.25M114.92M169.14M117.81M40.44M188.95M
Operating Cash Flow208.14M216.28M205.22M125.75M92.79M271.45M
Investing Cash Flow-91.73M-17.73M-186.15M18.69M47.11M132.38M
Financing Cash Flow-122.64M-63.87M-62.09M-82.07M-344.63M-198.04M

Scholar Education Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.15
Price Trends
50DMA
2.01
Negative
100DMA
2.34
Negative
200DMA
2.73
Negative
Market Momentum
MACD
-0.06
Positive
RSI
29.64
Positive
STOCH
20.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1769, the sentiment is Negative. The current price of 2.15 is above the 20-day moving average (MA) of 1.89, above the 50-day MA of 2.01, and below the 200-day MA of 2.73, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 29.64 is Positive, neither overbought nor oversold. The STOCH value of 20.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1769.

Scholar Education Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
HK$1.64B2.1117.52%10.76%7.71%11.65%
72
Outperform
HK$1.72B3.3811.86%11.69%7.59%-30.36%
69
Neutral
HK$2.21B1.9810.86%―0.40%111.11%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
62
Neutral
HK$1.16B7.6918.62%3.40%23.95%-1.00%
56
Neutral
HK$1.41B11.854.06%―-0.48%-29.65%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1769
Scholar Education Group
1.72
-2.70
-61.09%
HK:2001
China New Higher Education Group Ltd
0.84
-0.05
-5.62%
HK:2175
China General Education Group Limited
2.76
-0.69
-20.00%
HK:0382
Edvantage Group Holdings Limited
1.42
-0.42
-22.83%
HK:6169
China Yuhua Education Corp. Ltd.
0.51
0.15
41.67%

Scholar Education Group Corporate Events

Scholar Education Group Buys Back Shares for Award Scheme, Citing Undervaluation
Jan 29, 2026

Scholar Education Group has disclosed that the trustee of its share award scheme purchased 1,250,000 shares on the market on 29 January 2026, representing about 0.186% of its issued share capital, at an average price of approximately HK$2.12 per share, for a total consideration of about HK$2.65 million. Following this transaction, the trustee holds 18,050,000 shares, or 2.68% of the company’s issued shares, and the board stated that it views the current share price as significantly undervaluing the company, signalling confidence in its business prospects and indicating it may continue to direct further purchases under the scheme while determining future awards and vesting conditions at its discretion.

The most recent analyst rating on (HK:1769) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Scholar Education Group stock, see the HK:1769 Stock Forecast page.

Scholar Education Group Expands Share Award Pool With New On-Market Purchase
Jan 28, 2026

Scholar Education Group has reported that the trustee of its share award scheme purchased 1,750,000 shares on the market on 28 January 2026, representing about 0.26% of its issued share capital, at an average price of approximately HK$2.12 per share and a total consideration of around HK$3.7 million. Following this transaction, the trustee holds 16.8 million shares, or about 2.49% of the company’s issued shares, which will be used for future awards to selected participants; the board reiterated its view that the current share price undervalues the company, signalling confidence in its business outlook and indicating it may continue to direct further on-market purchases under the scheme as market conditions permit.

The most recent analyst rating on (HK:1769) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Scholar Education Group stock, see the HK:1769 Stock Forecast page.

Scholar Education Group Expands Share Award Pool With Market Purchase Amid Confidence in Valuation
Jan 27, 2026

Scholar Education Group has announced that the trustee of its share award scheme purchased 1,500,000 shares on the market on 27 January 2026, representing approximately 0.223% of its issued share capital, at an average price of about HK$2.06 per share and a total consideration of roughly HK$3.09 million. Following this transaction, the trustee holds 15,050,000 shares, or around 2.23% of the company’s issued share capital, and the board stated that the current share price significantly undervalues the company’s underlying value, signaling confidence in its business outlook and an intention to continue monitoring market conditions and directing further purchases for future share awards to selected participants under the scheme.

The most recent analyst rating on (HK:1769) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Scholar Education Group stock, see the HK:1769 Stock Forecast page.

Scholar Education Group Earmarks HK$50 Million for Share Purchases Under Award Scheme
Jan 26, 2026

Scholar Education Group has authorised up to HK$50 million for its share award scheme trustee to purchase existing shares on the open market, representing a potential buyback of about 25 million shares, or roughly 3.71% of its issued share capital based on the latest closing price. The board argues the current share price significantly undervalues the company, and intends to use the purchased shares to incentivise eligible participants under the scheme, signalling confidence in the group’s business outlook while stating that its financial position can support the purchases without constraining operational growth; the board will actively adjust, expand or halt the buy programme depending on market valuation and capital allocation considerations.

The most recent analyst rating on (HK:1769) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Scholar Education Group stock, see the HK:1769 Stock Forecast page.

Scholar Education Expects 2025 Loss on Expansion Costs and Investment Defaults
Jan 26, 2026

Scholar Education Group has warned that it expects to swing to a net loss of between RMB70 million and RMB80 million for 2025, compared with a net profit of RMB145.6 million a year earlier, with adjusted figures excluding share-based compensation also turning from a RMB175.7 million profit in 2024 to an anticipated loss of RMB40 million to RMB50 million. The deterioration in earnings is attributed to the costs of an expanded business strategy, including opening new literacy learning centres that are still in their ramp-up phase and generating limited revenue, alongside fair value losses after around RMB30 million of financial investments were not redeemed on maturity due to counterparty defaults, pressuring profitability and signalling a more challenging near-term outlook for shareholders and potential investors.

The most recent analyst rating on (HK:1769) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Scholar Education Group stock, see the HK:1769 Stock Forecast page.

Scholar Education Group Adds to Share Award Pool With On-Market Buyback
Jan 2, 2026

Scholar Education Group has disclosed that the trustee of its share award scheme purchased 50,000 shares on the market on 2 January 2026, representing about 0.007% of its issued share capital, at an average price of roughly HK$2.15 per share and a total consideration of approximately HK$108,000, bringing the trustee’s post-transaction holding to 13.55 million shares, or about 2.01% of shares outstanding. The board stated it views the current share price as significantly undervaluing the company’s performance and intrinsic value, and sees the repurchases as an opportunity to accumulate shares for future awards to selected participants, signalling confidence in the company’s business outlook while indicating it will continue to monitor market conditions and determine award levels and vesting terms at its discretion.

The most recent analyst rating on (HK:1769) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Scholar Education Group stock, see the HK:1769 Stock Forecast page.

Scholar Education Group Relocates Principal Place of Business in Hong Kong
Jan 2, 2026

Scholar Education Group has announced a change to its principal place of business in Hong Kong, effective 2 January 2026, relocating its office to Unit 04, 22/F, Austin Plaza, No. 83 Austin Road, Kowloon. The move represents an administrative update to its corporate contact location and does not, on the face of the announcement, indicate any immediate change to its business operations or strategic direction, but it is relevant for stakeholders and counterparties who rely on accurate corporate address details for regulatory, legal and communication purposes.

The most recent analyst rating on (HK:1769) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Scholar Education Group stock, see the HK:1769 Stock Forecast page.

Scholar Education Group Trustee Adds Shares Under Award Scheme as Board Flags Undervaluation
Dec 31, 2025

Scholar Education Group has reported that the trustee of its share award scheme purchased 68,000 shares on the market on 31 December 2025, representing about 0.01% of its issued share capital, at an average price of approximately HK$2.13 per share and a total consideration of around HK$145,000, bringing the trustee’s total holding under the scheme to 13.5 million shares, or about 2.0% of issued shares. The board reiterated its view that the current share price significantly undervalues the company, framing the buy as an attractive opportunity to accumulate stock for future awards, and signalled continued monitoring of market conditions with a view to making further purchases under the scheme at its discretion, underscoring management’s confidence in the company’s business outlook and commitment to staff incentives.

The most recent analyst rating on (HK:1769) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Scholar Education Group stock, see the HK:1769 Stock Forecast page.

Scholar Education Group Adds to Share Award Scheme Holdings With On-Market Buy
Dec 30, 2025

Scholar Education Group has announced that the trustee of its share award scheme purchased 100,000 shares on the market on 30 December 2025, representing approximately 0.015% of its issued share capital, at an average price of about HK$2.04 per share, bringing the trustee’s total holdings under the scheme to 13,432,000 shares, or around 1.99% of the company. The board reiterated its view that the current share price undervalues the company’s performance and underlying value, framing the transaction as an opportunity to accumulate shares for future awards and signalling confidence in the company’s business outlook, while indicating it will continue to monitor market conditions and determine future share awards and vesting at its discretion.

The most recent analyst rating on (HK:1769) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Scholar Education Group stock, see the HK:1769 Stock Forecast page.

Scholar Education Group Trustee Buys Shares for Award Scheme, Signals Confidence in Valuation
Dec 29, 2025

Scholar Education Group has disclosed that the trustee of its share award scheme purchased 100,000 shares on the market on 29 December 2025, representing about 0.015% of its issued share capital, at an average price of roughly HK$2.07 per share and total consideration of about HK$207,000. Following this transaction, the trustee holds 13,332,000 shares, or about 1.98% of the company’s issued shares, which are reserved for future awards to selected participants; the board stated that the current share price significantly undervalues the company, and signalled confidence in its business outlook by indicating it may continue to instruct further share purchases for the scheme depending on market conditions and will decide at its discretion on future awards and vesting terms.

The most recent analyst rating on (HK:1769) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Scholar Education Group stock, see the HK:1769 Stock Forecast page.

Scholar Education Group Adds Shares to Award Scheme as Board Cites Undervaluation
Dec 24, 2025

Scholar Education Group has disclosed that the trustee of its share award scheme purchased 100,000 shares on the market on 24 December 2025, representing approximately 0.015% of its issued share capital, at an average price of about HK$2.07 per share and a total consideration of roughly HK$207,000. Following this transaction, the trustee holds 13,232,000 shares, or 1.96% of the company’s issued share capital, which will be used for future share awards to selected participants; the board reiterated its view that the current share price undervalues the firm’s performance and prospects and signaled ongoing willingness to direct further purchases under the scheme, highlighting confidence in its business outlook and a continued focus on incentivising key personnel.

The most recent analyst rating on (HK:1769) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Scholar Education Group stock, see the HK:1769 Stock Forecast page.

Scholar Education Group Trustee Buys Shares for Award Scheme, Signalling Confidence in Undervalued Stock
Dec 23, 2025

Scholar Education Group has disclosed that the trustee of its share award scheme purchased 200,000 shares on the market on 23 December 2025, representing about 0.03% of its issued share capital, at an average price of approximately HK$2.05 per share and a total consideration of around HK$410,000. Following this transaction, the trustee holds about 13.13 million shares, or 1.95% of the company’s issued share capital, which will be used for future grants under the share award scheme; the board reiterated its view that the current share price significantly undervalues the company’s performance and fundamentals, signaling management confidence in its business outlook and a continued willingness to support the stock and incentivise selected participants through equity-based rewards.

The most recent analyst rating on (HK:1769) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Scholar Education Group stock, see the HK:1769 Stock Forecast page.

Scholar Education Group Forms Joint Venture to Develop AI-Powered Educational Robots
Nov 12, 2025

Scholar Education Group has announced the formation of a joint venture with Shenzhen Huaxia Junyong to develop educational robots powered by artificial intelligence. This initiative aims to enhance student learning experiences, support teachers by automating administrative tasks, and provide insights into student engagement. The joint venture aligns with national digital education strategies and involves a significant capital contribution to research and develop advanced AI algorithms and multifunctional educational robots, marking the company’s entry into the educational AI robotics industry.

The most recent analyst rating on (HK:1769) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Scholar Education Group stock, see the HK:1769 Stock Forecast page.

Scholar Education Group Forms Joint Venture for AI Educational Robots
Nov 4, 2025

Scholar Education Group has announced the formation of a joint venture with Shenzhen Huaxia Junyong to develop educational AI robots, with a total investment of RMB385 million. The joint venture will be 30% owned by Scholar Education Group and 70% by Shenzhen Huaxia Junyong, marking a strategic move to enhance its technological capabilities in the education sector.

The most recent analyst rating on (HK:1769) stock is a Buy with a HK$3.50 price target. To see the full list of analyst forecasts on Scholar Education Group stock, see the HK:1769 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 25, 2025