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China Gingko Education Group Co., Ltd. (HK:1851)
:1851
Hong Kong Market
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China Gingko Education Group Co., Ltd. (1851) AI Stock Analysis

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HK:1851

China Gingko Education Group Co., Ltd.

(1851)

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Outperform 79 (OpenAI - 5.2)
Rating:79Outperform
Price Target:
HK$7.00
▲(145.61% Upside)
Action:Reiterated
Date:05/07/26
The score is driven primarily by strong financial performance (very high margins and improved leverage) and supportive valuation (low P/E). Technicals remain positive due to a strong uptrend, but elevated RSI/Stoch readings temper the score due to higher near-term reversal risk.
Positive Factors
High Profitability
Sustained high gross and operating margins around the mid-40% area indicate durable pricing power and cost control in campus-based higher education. This margin profile supports long-term cash generation and resilience to cyclical enrollment dips, underpinning stable operating economics.
Negative Factors
Modest Recent Revenue Growth
Revenue growth has meaningfully slowed to roughly 3% in the latest period versus stronger multi-year gains. Slower top-line momentum limits room for margin expansion via scale, constrains long-term earnings growth, and increases reliance on pricing or cost cuts to sustain profits.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Sustained high gross and operating margins around the mid-40% area indicate durable pricing power and cost control in campus-based higher education. This margin profile supports long-term cash generation and resilience to cyclical enrollment dips, underpinning stable operating economics.
Read all positive factors

China Gingko Education Group Co., Ltd. (1851) vs. iShares MSCI Hong Kong ETF (EWH)

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 Col...
How the Company Makes Money
The company primarily makes money by charging tuition and other education-related fees to students enrolled in its higher-education programs. Key revenue streams typically include: (1) tuition fees from academic programs (the core driver of revenu...

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

Summary
Strong profitability with very high operating and net margins (~42%/~41%) and improving leverage (debt-to-equity ~0.16). Offsets include modest latest revenue growth (~3%) and some uncertainty in earnings-to-cash conversion due to unusable coverage ratios.
Income Statement
86
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
74
Positive
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue400.68M372.69M354.86M286.19M226.74M
Gross Profit221.44M209.96M213.11M162.24M103.92M
EBITDA219.53M197.29M209.19M152.80M83.94M
Net Income162.57M153.21M148.03M85.01M38.68M
Balance Sheet
Total Assets1.60B1.59B1.46B1.41B1.20B
Cash, Cash Equivalents and Short-Term Investments250.80M273.87M215.71M199.85M156.31M
Total Debt180.57M311.01M339.95M401.29M389.66M
Total Liabilities494.69M648.53M674.70M772.22M649.93M
Stockholders Equity1.10B937.91M784.70M636.67M551.66M
Cash Flow
Free Cash Flow111.31M97.50M96.36M58.63M37.70M
Operating Cash Flow198.54M205.69M237.36M212.00M119.35M
Investing Cash Flow-137.00M-108.18M-140.99M-153.37M-76.66M
Financing Cash Flow-127.18M-41.77M-81.75M-19.67M-37.75M

China Gingko Education Group Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.85
Price Trends
50DMA
4.69
Positive
100DMA
4.07
Positive
200DMA
2.92
Positive
Market Momentum
MACD
0.64
Negative
RSI
69.15
Neutral
STOCH
61.56
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 2.85 is below the 20-day moving average (MA) of 5.74, below the 50-day MA of 4.69, and below the 200-day MA of 2.92, indicating a bullish trend. The MACD of 0.64 indicates Negative momentum. The RSI at 69.15 is Neutral, neither overbought nor oversold. The STOCH value of 61.56 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
HK$3.34B5.8115.20%7.50%5.93%
70
Outperform
HK$612.00M1.927.04%12.52%-33.22%
63
Neutral
HK$715.82M2.528.40%11.09%1.47%1.93%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
51
Neutral
HK$233.45M-0.62-3.49%11.00%15.94%-168.02%
42
Neutral
HK$506.13M-0.23-15.64%5.30%-15.33%-64500.00%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1851
China Gingko Education Group Co., Ltd.
6.75
5.63
502.68%
HK:1565
Virscend Education Company Limited
0.16
-0.06
-28.57%
HK:1569
Minsheng Education Group Co. Ltd.
0.12
-0.04
-26.22%
HK:1756
China Vocational Education Holdings Limited
0.48
-0.10
-18.10%
HK:2779
China Xinhua Education Group Limited
0.45
-0.13
-23.28%
HK:6913
South China Vocational Education Group Co., Ltd.
0.17
-0.10
-35.93%

China Gingko Education Group Co., Ltd. Corporate Events

China Gingko Education Sets 2026 AGM, Seeks Share Issuance Mandate and Board Continuity
Apr 24, 2026
China Gingko Education Group has called its annual general meeting for 12 June 2026 in Chengdu, where shareholders will review the audited consolidated financial statements for the year ended 31 December 2025 and receive reports from the board and...
China Gingko Education Posts Higher Revenue and Profit on Rising Enrollment
Mar 27, 2026
China Gingko Education Group Company Limited, a Cayman Islands-incorporated higher education provider in mainland China, reported steady growth in its core operations for the year ended 31 December 2025. The group continues to rely on tuition and ...
China Gingko Education Sets March Board Meeting for 2025 Results and Dividend Plan
Mar 13, 2026
China Gingko Education Group Company Limited has scheduled a board meeting for 27 March 2026 to review and approve its audited consolidated financial results for the year ended 31 December 2025. The board will also consider whether to recommend a ...
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: May 07, 2026