China Chunlai Education Group Co., Ltd. (1969) AI Stock Analysis

• Market Cap: HK$3.64B
• Dividend Yield: 4.65%
• Average Volume (3M): 5.50M
• Price to Earnings (P/E): 4.0
• Beta (1Y): 0.20
• Revenue Growth: 9.69%
• EPS Growth: 7.31%
• Country: HK
• Employees: 5,100
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.39
• Shares Outstanding: 1,200,000,000
• 10 Day Avg. Volume: 3,471,100
• 30 Day Avg. Volume: 5,502,600
• PEG Ratio: 0.40
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 3.07
• P/FCF Ratio: 8.77
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: HK$5.00 ▲(38.89% Upside)

The overall stock score is driven primarily by strong financial performance and attractive valuation. The company's robust revenue growth and profitability, along with a strong equity base, provide a solid foundation. The low P/E ratio and high dividend yield enhance the stock's appeal. However, mixed technical indicators suggest caution, as there is no clear momentum in the stock's price movement.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a solid market position and increasing demand for educational services, supporting long-term expansion.

Profitability

High profitability margins suggest effective cost management and pricing power, enhancing the company's ability to reinvest in growth.

Cash Flow Generation

Strong cash flow generation provides financial flexibility for strategic investments and reduces reliance on external financing.

Negative Factors

Free Cash Flow Conversion

Lower free cash flow conversion indicates potential inefficiencies in translating earnings into cash, which could limit growth investments.

Leverage

Moderate leverage could pose risks if revenue growth slows, as it may increase financial strain and limit operational flexibility.

Equity Utilization

While ROE is strong, reliance on equity for growth may dilute shareholder value if not managed carefully, impacting long-term returns.

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

Company Description

China Chunlai Education Group Co., Ltd., together with its subsidiaries, provides private higher education services in the People's Republic of China. It operates three colleges in Henan Province; two college in Hubei Province; and one college in Jiangsu Province. The company was founded in 2004 and is headquartered in Shangqiu, the People's Republic of China. China Chunlai Education Group Co., Ltd. is a subsidiary of Chunlai Investment Co., Limited.

How the Company Makes Money

China Chunlai Education Group Co., Ltd. generates revenue primarily through tuition fees collected from its students enrolled in various undergraduate and junior college programs. The company also earns income from boarding fees for students residing in on-campus accommodations. Additionally, Chunlai Education may engage in partnerships with educational institutions and organizations to enhance its curriculum and expand its educational services, although specific partnerships contributing to revenue are not detailed. The company's financial performance is further supported by its ability to maintain high enrollment numbers and expand its educational facilities and program offerings.

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

Summary

China Chunlai Education Group Co., Ltd. exhibits strong financial performance with significant revenue growth and profitability. The balance sheet is well-balanced with moderate leverage and a strong equity base. Cash flow generation is solid, though there is potential for improving free cash flow conversion. Overall, the company is on a positive financial trajectory, supported by robust margins and efficient capital management.

Income Statement

The company has demonstrated strong revenue growth with a 8.9% increase from the previous year, indicating a solid growth trajectory. The gross profit margin stands at 58.6% and the net profit margin at 47.7%, both reflecting strong profitability. The EBIT margin is 54.1%, and the EBITDA margin is 70.2%, showcasing efficient operations and cost management.

Balance Sheet

The balance sheet is stable with a debt-to-equity ratio of 0.58, indicating moderate leverage. The return on equity (ROE) is a robust 20.0%, signifying effective use of equity capital. The equity ratio is 53.6%, suggesting a strong equity base relative to total assets, which provides financial stability.

Cash Flow

The company's free cash flow grew by 8.7%, reflecting positive cash generation trends. The operating cash flow to net income ratio of 1.3 indicates strong cash flow relative to earnings. However, the free cash flow to net income ratio is 0.73, suggesting room for improvement in converting earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.71B	1.63B	1.50B	1.31B	1.04B	702.49M
Gross Profit	961.57M	955.50M	890.05M	826.70M	631.44M	369.58M
EBITDA	1.13B	1.15B	1.04B	907.77M	628.86M	363.78M
Net Income	800.46M	778.17M	684.39M	552.26M	606.92M	141.33M
Balance Sheet
Total Assets	7.13B	7.25B	6.46B	5.87B	5.05B	3.75B
Cash, Cash Equivalents and Short-Term Investments	435.31M	675.90M	789.72M	630.93M	399.60M	204.01M
Total Debt	1.67B	2.25B	2.17B	2.39B	2.37B	1.79B
Total Liabilities	2.95B	3.37B	3.18B	3.25B	2.99B	2.31B
Stockholders Equity	4.18B	3.88B	3.28B	2.62B	2.06B	1.44B
Cash Flow
Free Cash Flow	906.67M	570.92M	525.29M	843.43M	191.87M	-519.58M
Operating Cash Flow	1.23B	1.03B	1.07B	1.16B	741.60M	8.99M
Investing Cash Flow	-851.92M	-953.53M	-531.69M	-814.38M	-897.98M	-448.16M
Financing Cash Flow	-559.92M	-194.51M	-383.75M	-114.34M	351.97M	169.56M

China Chunlai Education Group Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1969, the sentiment is Negative. The current price of 3.6 is below the 20-day moving average (MA) of 3.92, below the 50-day MA of 4.17, and below the 200-day MA of 4.31, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 8.05 is Positive, neither overbought nor oversold. The STOCH value of 2.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1969.

China Chunlai Education Group Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2001	81 Outperform	HK$1.87B	1.79	18.04%	10.76%	7.71%	11.65%
1890	80 Outperform	HK$2.73B	3.38	14.26%	9.42%	10.53%	-9.66%
0382	78 Outperform	HK$1.66B	2.94	11.86%	11.69%	7.59%	-30.36%
0839	76 Outperform	HK$8.74B	8.13	5.90%	9.49%	11.85%	100.46%
1969	72 Outperform	HK$3.64B	4.02	19.40%	4.65%	9.69%	7.31%
2779	69 Neutral	HK$916.89M	2.28	9.80%	11.09%	0.87%	9.69%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

China Chunlai Education Group Co., Ltd. Corporate Events

China Chunlai Education Sets 2026 AGM to Approve Accounts and Share Issuance Mandate

China Chunlai Education Group Co., Ltd. has convened its annual general meeting for 5 February 2026 in Zhengzhou, where shareholders will vote on the adoption of the audited financial statements for the year ended 31 August 2025, the re-election of three retiring directors, and the re-appointment of ZHONGHUI ANDA CPA Limited as auditor, with the board authorised to set related remunerations. The AGM will also consider an ordinary resolution granting the board a general mandate to allot, issue or deal with up to 20% of the company’s issued share capital (excluding treasury shares), enhancing the company’s financial flexibility for future equity issuance and capital management within Hong Kong listing rules, which could affect ownership dilution and capital structure for existing shareholders.

The most recent analyst rating on (HK:1969) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on China Chunlai Education Group Co., Ltd. stock, see the HK:1969 Stock Forecast page.

China Chunlai Education Group Reports 9.8% Revenue Growth in 2025

China Chunlai Education Group Co., Ltd. has announced its audited consolidated annual results for the year ended 31 August 2025, reporting a revenue increase of 9.8% to RMB 1,790,614 thousand. The company’s gross profit rose by 1.6%, and profit before taxation increased by 7.6%. The adjusted net profit, which excludes share-based compensation and foreign exchange gains or losses, grew by 5.9%. These results reflect the company’s continued growth and stable financial performance, providing valuable insights for shareholders and investors.

The most recent analyst rating on (HK:1969) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on China Chunlai Education Group Co., Ltd. stock, see the HK:1969 Stock Forecast page.

China Chunlai Education Group Schedules Board Meeting for Annual Results Review

China Chunlai Education Group Co., Ltd. has announced a board meeting scheduled for November 28, 2025, to review and approve the audited consolidated annual results for the year ending August 31, 2025. The meeting will also consider the potential payment of a final dividend, reflecting the company’s ongoing financial management and stakeholder engagement.

The most recent analyst rating on (HK:1969) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on China Chunlai Education Group Co., Ltd. stock, see the HK:1969 Stock Forecast page.

China Chunlai Education Group Boosts AI and Blockchain Education with Chairman’s Donation

China Chunlai Education Group Co., Ltd. announced that its Chairman, Mr. Hou Chunlai, has made a significant donation to support the Group’s AI and blockchain research and education initiatives. This donation includes free access to advanced AI and blockchain technology developed at a data center owned by the Chairman in Washington, USA, as well as the profits generated by the data center. This strategic move aims to keep the Group at the forefront of technological innovation, enhancing its educational offerings and preparing students for future challenges.

The most recent analyst rating on (HK:1969) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on China Chunlai Education Group Co., Ltd. stock, see the HK:1969 Stock Forecast page.