China New Higher Education Group Ltd (2001) AI Stock Analysis

• Market Cap: HK$2.39B
• Dividend Yield: 8.89%
• Average Volume (3M): 9.27M
• Price to Earnings (P/E): 2.8
• Beta (1Y): 0.98
• Revenue Growth: 9.07%
• EPS Growth: 5.93%
• Country: HK
• Employees: 10,030
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.33
• Shares Outstanding: 1,971,941,800
• 10 Day Avg. Volume: 6,563,331
• 30 Day Avg. Volume: 9,271,214
• PEG Ratio: 0.32
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 3.10
• 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: 81 Outperform
• Price Target: HK$1.50 ▲(25.00% Upside)

The overall stock score is primarily driven by strong financial performance and attractive valuation metrics. The company's robust revenue growth and efficient cash flow generation are complemented by a low P/E ratio and high dividend yield, making it appealing for growth and income investors. Technical analysis supports a positive outlook with bullish momentum indicators.

China New Higher Education Group Ltd Business Overview & Revenue Model

Company Description

China New Higher Education Group Limited, an investment holding company, provides education services in the People's Republic of China. The company operates education institutions under Yunnan Technology and Business University, Science and Technology College of Hubei Minzu University, Harbin Huade University, Lanzhou University of Technology College of Technology and Engineering, Guizhou Vocational College of Industry and Commerce, Luoyang Vocation College of Science and Technology, and Talent International College Guangxi names. It also offers technical and management consultancy services. The company was founded in 1999 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

China 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.51B	2.41B	2.12B	1.92B	1.50B	1.08B
Gross Profit	899.13M	876.13M	806.00M	750.41M	667.16M	432.97M
EBITDA	989.10M	1.35B	930.29M	1.08B	951.71M	482.15M
Net Income	793.38M	756.07M	703.29M	620.00M	567.82M	262.36M
Balance Sheet
Total Assets	10.11B	11.02B	9.24B	9.07B	7.93B	5.86B
Cash, Cash Equivalents and Short-Term Investments	525.86M	1.39B	903.85M	1.10B	895.88M	726.27M
Total Debt	2.83B	3.50B	2.72B	3.33B	3.01B	1.90B
Total Liabilities	5.51B	6.91B	5.71B	5.90B	4.74B	3.35B
Stockholders Equity	4.59B	4.11B	3.53B	3.18B	3.01B	2.32B
Cash Flow
Free Cash Flow	642.92M	687.27M	727.71M	770.88M	348.74M	-128.24M
Operating Cash Flow	1.40B	1.54B	1.42B	1.53B	728.78M	68.29M
Investing Cash Flow	-798.10M	-739.05M	-631.99M	-728.87M	-1.02B	-56.30M
Financing Cash Flow	-348.89M	-279.05M	-1.02B	-500.01M	460.71M	61.89M

China New Higher Education Group Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.20
• 50DMA: Negative
• 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:2001, the sentiment is Neutral. The current price of 1.2 is below the 20-day moving average (MA) of 1.24, below the 50-day MA of 1.22, and above the 200-day MA of 1.01, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.41 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2001	81 Outperform	HK$2.39B	2.79	18.95%	8.89%	9.07%	5.93%
0382	78 Outperform	HK$1.67B	2.40	15.41%	11.77%	9.66%	-8.34%
1765	75 Outperform	€1.61B	2.04	7.59%	―	1.93%	―
6169	72 Outperform	HK$2.28B	2.99	7.75%	―	1.32%	-20.13%
1769	66 Neutral	HK$2.00B	12.22	20.01%	2.41%	23.95%	-1.00%
6068	65 Neutral	HK$266.47M	2.43	16.80%	―	-41.24%	-36.17%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%