China Gingko Education Group Co., Ltd. (1851) AI Stock Analysis

• Market Cap: HK$850.00M
• Dividend Yield: N/A
• Average Volume (3M): 742.27K
• Price to Earnings (P/E): 4.9
• Beta (1Y): 0.14
• Revenue Growth: 2.89%
• EPS Growth: 1.19%
• Country: HK
• Employees: 1,106
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Education & Training Services
• EPS (TTM): 0.10
• Shares Outstanding: 500,000,000
• 10 Day Avg. Volume: 43,600
• 30 Day Avg. Volume: 742,266
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 81 Outperform
• Price Target: HK$2.00 ▲(17.65% Upside)

The overall stock score is primarily driven by strong technical analysis and valuation metrics. The company's financial performance is solid, but the absence of 2024 cash flow data slightly dampens the score. The stock’s undervaluation based on the P/E ratio and positive price momentum contribute significantly to the high score.

China Gingko Education Group Co., Ltd. Business Overview & Revenue Model

Company Description

China Gingko Education Group Company Limited, together with its subsidiaries, provides higher education services in the People's Republic of China. It operates in two segments, Higher Education, and Hotel Operation. The company operates Gingko College of Hospitality Management that offers a range of courses in the management, literature, engineering, education, economics, and arts disciplines; and Chengdu Yinxing Hotel Vocational Skills Training School. Its college provides 27 bachelor's degree programs and 27 junior college diploma programs to 14,945 students. The company also provides social, hotel operations and management, education consultancy, and assets management services. China Gingko Education Group Company Limited was founded in 2002 and is headquartered in Chengdu, the People's Republic of China.

How the Company Makes Money

China Gingko Education Group Co., Ltd. generates revenue through tuition fees collected from students enrolled in its various educational programs. The company's key revenue streams include fees from undergraduate and junior college diploma programs, as well as continuing education courses. Additionally, the company may receive income from partnerships with other educational institutions or organizations that support its curriculum and training initiatives, although specific partnership details are null. Factors such as enrollment rates, tuition pricing, and the expansion of course offerings significantly contribute to the company's earnings.

China Gingko Education Group Co., Ltd. Financial Statement Overview

Summary

The company demonstrates strong financial performance with consistent revenue growth and robust profitability margins. The balance sheet shows decreasing leverage and solid equity, enhancing financial stability. However, the lack of cash flow data for 2024 limits the assessment of current liquidity and cash generation.

Income Statement

The company has shown consistent revenue growth over the years, with a revenue growth rate of 5.02% from 2023 to 2024. Gross profit margin remains strong at 56.35% in 2024, indicating efficient cost management. The net profit margin has improved slightly to 41.11%, reflecting robust profitability. Both EBIT and EBITDA margins are impressive at 41.72% and 52.94%, respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a decreasing debt-to-equity ratio of 0.33 in 2024, indicating reduced financial leverage. The return on equity (ROE) has increased to 16.34%, highlighting effective use of equity capital. The equity ratio has remained stable at around 59.12%, suggesting solid financial stability and lower financial risk.

Cash Flow

Cash flow metrics are limited due to missing data for 2024. However, the 2023 data shows a strong operating cash flow to net income ratio of 1.60, indicating healthy cash generation. The free cash flow to net income ratio was 0.65 in 2023, reflecting adequate free cash flow generation relative to net income. The absence of cash flow data for 2024 poses a risk in assessing current liquidity.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	372.69M	354.86M	286.19M	226.74M	176.90M
Gross Profit	209.96M	213.11M	162.24M	103.92M	76.11M
EBITDA	197.29M	209.19M	152.80M	83.94M	51.68M
Net Income	153.21M	148.03M	85.01M	38.68M	16.93M
Balance Sheet
Total Assets	1.59B	1.46B	1.41B	1.20B	1.17B
Cash, Cash Equivalents and Short-Term Investments	273.87M	217.87M	199.85M	156.31M	152.53M
Total Debt	311.01M	339.95M	401.29M	389.66M	399.64M
Total Liabilities	648.53M	674.70M	772.22M	649.93M	657.89M
Stockholders Equity	937.91M	784.70M	636.67M	551.66M	512.98M
Cash Flow
Free Cash Flow	97.50M	96.36M	58.63M	37.70M	-42.39M
Operating Cash Flow	205.69M	237.36M	212.00M	119.35M	78.56M
Investing Cash Flow	-108.18M	-140.99M	-153.37M	-76.66M	-95.95M
Financing Cash Flow	-41.77M	-81.75M	-19.67M	-37.75M	-54.03M

China Gingko Education Group Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1851, the sentiment is Positive. The current price of 1.7 is above the 20-day moving average (MA) of 1.58, above the 50-day MA of 1.47, and above the 200-day MA of 0.97, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 56.62 is Neutral, neither overbought nor oversold. The STOCH value of 74.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1851.

China Gingko Education Group Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1851	81 Outperform	HK$850.00M	4.94	17.84%	―	2.89%	1.19%
2779	74 Outperform	HK$965.15M	2.70	9.21%	10.53%	-1.33%	4.95%
1756	72 Outperform	HK$732.00M	1.46	12.24%	―	13.37%	15.55%
6913	71 Outperform	HK$400.20M	4.06	5.50%	4.26%	20.53%	-21.74%
Sector *	61 Neutral	$16.54B	9.49	-9.03%	3.32%	1.50%	-24.21%
1569	56 Neutral	HK$683.27M	540.00	0.02%	6.28%	-18.89%	-99.23%

China Gingko Education Group Co., Ltd. Corporate Events

China Gingko Education Group Secures Unanimous Approval at AGM

China Gingko Education Group Co., Ltd. announced that all proposed resolutions were passed at their Annual General Meeting held on June 20, 2025. Key resolutions included the re-election of directors, authorization of the board to fix director remuneration, re-appointment of auditors, and granting mandates to issue and buy back shares. This unanimous approval reflects strong shareholder support and positions the company for strategic flexibility in its operations.

China Gingko Education Group Updates Nomination Committee

China Gingko Education Group Co., Ltd. has announced changes to its Nomination Committee effective June 20, 2025. These changes include the appointment of Ms. Zeng Qin as a member, the cessation of Mr. Fang Gongyu as chairman and member, and the appointment of Mr. Jiang Qian as the new chairman. The adjustments align with upcoming amendments to the Listing Rules and Corporate Governance Code, aiming to enhance the board’s effectiveness and diversity, thereby strengthening the company’s corporate governance practices.

China Gingko Education Group Announces Board Composition

China Gingko Education Group Co., Ltd. announced the composition of its board of directors and their roles within the company. This announcement details the executive and independent non-executive directors, as well as their participation in various board committees, which is crucial for stakeholders to understand the governance and strategic oversight of the company.

China Gingko Education Group Updates Nomination Committee Terms

China Gingko Education Group Company Limited has updated the terms of reference for its Nomination Committee, effective from June 20, 2025. The committee will consist of a majority of independent non-executive directors, with a requirement for gender diversity among its members. This move is aimed at enhancing governance and ensuring diverse perspectives in the nomination process, potentially impacting the company’s strategic direction and stakeholder engagement.