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China New Higher Education Group Ltd (HK:2001)
:2001
Hong Kong Market
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China New Higher Education Group Ltd (2001) AI Stock Analysis

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HK:2001

China New Higher Education Group Ltd

(2001)

Rating:75Outperform
Price Target:
HK$1.50
▲(37.61% Upside)
The stock's overall score is driven primarily by its strong financial performance and attractive valuation. Despite high leverage, the company maintains robust revenue growth and efficient cash flow. The stock's low P/E ratio and high dividend yield further add to its appeal. However, technical analysis suggests caution due to overbought conditions, which could limit short-term upside.

China New Higher Education Group Ltd (2001) vs. iShares MSCI Hong Kong ETF (EWH)

China New Higher Education Group Ltd Business Overview & Revenue Model

Company DescriptionChina New Higher Education Group Ltd (2001) is a leading private higher education group in China, focusing on providing high-quality education services. The company operates a network of private higher education institutions across various regions in China, offering undergraduate and junior college education programs. Its core services include academic services, career-oriented programs, and vocational education, aiming to equip students with practical skills and knowledge to meet the demands of the labor market.
How the Company Makes MoneyChina New Higher Education Group Ltd generates revenue primarily through tuition and related fees from its education programs. The company offers a range of undergraduate and junior college courses, each with specific tuition rates, contributing significantly to its revenue streams. Additional income is derived from ancillary services such as accommodation, food, and other student-related services provided on campus. The company's financial performance is also supported by strategic partnerships with local governments and industries, enhancing its educational offerings and ensuring better employment opportunities for its graduates, which in turn attracts more students to its institutions.

China New Higher Education Group Ltd Financial Statement Overview

Summary
China New Higher Education Group Ltd demonstrates strong financial health with consistent revenue and profit growth. While the balance sheet indicates substantial leverage, the company maintains a solid asset base and efficient cash flow generation. Continued focus on operational efficiencies and debt management will be crucial for sustaining its growth trajectory.
Income Statement
85
Very Positive
The company shows strong revenue growth with a 13.8% increase from the previous year. Gross and net profit margins are solid at 36.3% and 31.4% respectively. However, the EBIT margin slightly decreased from the prior year, indicating some pressure on operational efficiencies.
Balance Sheet
78
Positive
The debt-to-equity ratio is relatively high at 0.85, indicating considerable leverage, which could pose risks if not managed properly. However, the company maintains a healthy equity ratio of 37.3%, showcasing a stable asset base.
Cash Flow
80
Positive
Operating cash flow is robust, with a strong free cash flow to net income ratio of 0.91, signaling efficient cash generation relative to profit. However, a year-over-year decrease in free cash flow growth suggests potential challenges in maintaining operational cash efficiency.
BreakdownTTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue2.51B2.41B2.12B1.92B1.50B1.08B
Gross Profit899.13M876.13M806.00M750.41M667.16M432.97M
EBITDA989.10M1.35B930.29M1.08B951.71M482.15M
Net Income793.38M756.07M703.29M620.00M567.82M262.36M
Balance Sheet
Total Assets10.11B11.02B9.24B9.07B7.93B5.86B
Cash, Cash Equivalents and Short-Term Investments525.86M1.39B903.85M1.10B895.88M726.27M
Total Debt2.83B3.50B2.72B3.33B3.01B1.90B
Total Liabilities5.51B6.91B5.71B5.90B4.74B3.35B
Stockholders Equity4.59B4.11B3.53B3.18B3.01B2.32B
Cash Flow
Free Cash Flow642.92M687.27M727.71M770.88M348.74M-128.24M
Operating Cash Flow1.40B1.54B1.42B1.53B728.78M68.29M
Investing Cash Flow-798.10M-739.05M-631.99M-728.87M-1.02B-56.30M
Financing Cash Flow-348.89M-279.05M-1.02B-500.01M460.71M61.89M

China New Higher Education Group Ltd Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.09
Price Trends
50DMA
1.06
Positive
100DMA
0.98
Positive
200DMA
0.97
Positive
Market Momentum
MACD
<0.01
Positive
RSI
49.28
Neutral
STOCH
22.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2001, the sentiment is Neutral. The current price of 1.09 is below the 20-day moving average (MA) of 1.10, above the 50-day MA of 1.06, and above the 200-day MA of 0.97, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.28 is Neutral, neither overbought nor oversold. The STOCH value of 22.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2001.

China New Higher Education Group Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
HK$2.15B2.5118.95%7.77%9.07%5.93%
61
Neutral
$17.60B14.14-5.40%3.04%1.40%-15.06%
€180.54M1.567.59%
81
Outperform
HK$1.89B2.7715.41%12.25%9.66%-8.34%
73
Outperform
HK$2.16B2.827.75%1.32%-20.13%
67
Neutral
HK$277.31M2.6616.80%42.97%-41.24%-36.17%
60
Neutral
HK$1.37B9.7920.01%2.89%23.95%-1.00%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2001
China New Higher Education Group Ltd
1.09
-0.19
-14.84%
DE:HE1
Hope Education Group Co., Ltd.
0.02
0.01
100.00%
HK:1769
Scholar Education Group
2.42
-3.12
-56.32%
HK:0382
Edvantage Group Holdings Limited
1.60
-0.41
-20.40%
HK:6068
Wisdom Education International Holdings Co. Ltd.
0.13
-0.02
-13.33%
HK:6169
China Yuhua Education Corp. Ltd.
0.51
0.11
27.50%

China New Higher Education Group Ltd Corporate Events

China New Higher Education Group Reports Strong Interim Results and Employment Success
Apr 24, 2025

China New Higher Education Group Ltd has announced its interim results for the six months ending February 28, 2025, highlighting a 7.8% increase in revenue and a 7.0% rise in adjusted net profit. The company has achieved a 98.03% employment rate for 2024 graduates, with significant growth in high-quality employment. The Group continues to benefit from policy support, with Guizhou School progressing towards becoming an undergraduate-level university, and new master’s degree-granting units approved at Yunnan and Northeast Schools.

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: Jul 22, 2025