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

• Market Cap: HK$995.00M
• Dividend Yield: N/A
• Average Volume (3M): 172.87K
• Price to Earnings (P/E): 6.3
• Beta (1Y): <0.01
• Revenue Growth: 1.40%
• EPS Growth: -15.24%
• Country: HK
• Employees: 1,106
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.21
• Shares Outstanding: 500,000,000
• 10 Day Avg. Volume: 139,215
• 30 Day Avg. Volume: 172,871
• PEG Ratio: 0.67
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.92
• P/FCF Ratio: 3.52
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: HK$2.00 ▼(-0.99% Downside)

The overall stock score of 72 reflects strong financial performance with consistent revenue growth and robust profitability margins. The technical analysis indicates a positive short to mid-term trend, although momentum is neutral. The stock appears undervalued based on its P/E ratio, but the absence of a dividend yield and limited cash flow data for 2024 are notable considerations.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for educational programs, enhancing long-term financial stability and market position.

Profitability Margins

High profitability margins reflect operational efficiency, allowing the company to reinvest in growth and withstand competitive pressures.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial flexibility, supporting sustainable growth and reducing financial risk.

Negative Factors

EPS Decline

A decline in EPS growth can signal challenges in maintaining profitability, potentially impacting investor confidence and future earnings potential.

Cash Flow Data Limitations

Missing cash flow data hinders the ability to evaluate liquidity and financial health, posing risks to operational and strategic planning.

Absence of Earnings Call Data

Lack of earnings call insights restricts transparency and guidance, potentially affecting stakeholder trust and strategic decision-making.

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 Ginkgo Education Group Co., Ltd. generates revenue primarily through its various educational offerings, including tuition fees from K-12 and vocational training programs, sales of educational materials, and subscription fees from online learning platforms. The company has established partnerships with schools, educational institutions, and corporate clients to provide tailored training solutions, which further diversifies its revenue streams. Additionally, the increasing demand for online education and skill enhancement in China has contributed significantly to its earnings, as the company capitalizes on the growing trend of digital learning.

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

Summary

China Gingko Education Group Co., Ltd. demonstrates strong financial performance with consistent revenue growth and robust profitability margins. The company's 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	379.01M	372.69M	354.86M	286.19M	226.74M	176.90M
Gross Profit	205.28M	209.96M	213.11M	162.24M	103.92M	76.11M
EBITDA	193.18M	197.29M	209.19M	152.80M	83.94M	51.68M
Net Income	146.86M	153.21M	148.03M	85.01M	38.68M	16.93M
Balance Sheet
Total Assets	1.39B	1.59B	1.46B	1.41B	1.20B	1.17B
Cash, Cash Equivalents and Short-Term Investments	72.58M	273.87M	215.71M	199.85M	156.31M	152.53M
Total Debt	248.75M	311.01M	339.95M	401.29M	389.66M	399.64M
Total Liabilities	346.95M	648.53M	674.70M	772.22M	649.93M	657.89M
Stockholders Equity	1.04B	937.91M	784.70M	636.67M	551.66M	512.98M
Cash Flow
Free Cash Flow	106.37M	97.50M	96.36M	58.63M	37.70M	-42.39M
Operating Cash Flow	203.47M	205.69M	237.36M	212.00M	119.35M	78.56M
Investing Cash Flow	-105.25M	-108.18M	-140.99M	-153.37M	-76.66M	-95.95M
Financing Cash Flow	-107.42M	-41.77M	-81.75M	-19.67M	-37.75M	-54.03M

China Gingko Education Group Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 2.02 is above the 20-day moving average (MA) of 2.00, above the 50-day MA of 1.90, and above the 200-day MA of 1.37, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 53.89 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 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
1756	74 Outperform	HK$840.00M	1.67	11.13%	―	13.88%	1.52%
1851	72 Outperform	HK$995.00M	6.29	15.11%	―	1.40%	-15.24%
6913	72 Outperform	HK$393.53M	4.22	5.05%	11.00%	15.28%	-23.69%
2779	69 Neutral	HK$997.32M	2.48	9.80%	10.90%	0.87%	9.69%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1569	53 Neutral	HK$843.54M	―	-2.11%	4.92%	-20.92%	-121.60%

China Gingko Education Group Co., Ltd. Corporate Events

China Gingko Education Group Announces Executive Director Change

China Gingko Education Group Co., Ltd. has announced a change in its executive board with the resignation of Mr. Ma Xiaoming as an executive director, effective October 24, 2025, to pursue other personal and business commitments. The company has appointed Ms. Li Jingjing as the new executive director, who brings extensive experience in corporate administration and has been with the company since 2018. This leadership change is expected to maintain the company’s strategic direction and operational continuity.

The most recent analyst rating on (HK:1851) stock is a Buy with a HK$2.50 price target. To see the full list of analyst forecasts on China Gingko Education Group Co., Ltd. stock, see the HK:1851 Stock Forecast page.

China Gingko Education Group Announces Board Composition

China Gingko Education Group Co., Ltd. has announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement provides clarity on the governance structure of the company, which is crucial for stakeholders to understand the leadership dynamics and decision-making processes within the organization.

The most recent analyst rating on (HK:1851) stock is a Buy with a HK$2.50 price target. To see the full list of analyst forecasts on China Gingko Education Group Co., Ltd. stock, see the HK:1851 Stock Forecast page.

China Gingko Education Group Reports Stable Interim Results for 2025

China Gingko Education Group Co., Ltd. reported its unaudited consolidated results for the six months ended June 30, 2025. The company achieved a revenue of RMB 208,415 thousand, marking an increase from the previous period. Despite a slight decrease in gross profit and operating profit compared to the previous period, the company maintained a strong profit before income tax of RMB 100,587 thousand. This financial performance reflects the company’s stable position in the education sector, although it faced challenges with increased cost of sales.

The most recent analyst rating on (HK:1851) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on China Gingko Education Group Co., Ltd. stock, see the HK:1851 Stock Forecast page.

China Gingko Education Group Schedules Board Meeting for Financial Review

China Gingko Education Group Co., Ltd. has announced that its board of directors will meet on August 29, 2025, to review and approve the company’s unaudited financial results for the first half of the year, ending June 30, 2025. The meeting will also consider the declaration of an interim dividend, which could impact the company’s financial strategy and shareholder returns.