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

• Market Cap: HK$1.87B
• Dividend Yield: 10.76%
• Average Volume (3M): 9.27M
• Price to Earnings (P/E): 1.8
• Beta (1Y): 1.06
• Revenue Growth: 7.71%
• EPS Growth: 11.65%
• Country: HK
• Employees: 10,030
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.20
• 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: HK$2.10
• Price Target Upside: 116.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: HK$1.50 ▲(54.64% 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.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market presence and attract more students, reinforcing its position in the education sector.

Cash Flow Generation

Efficient cash flow generation supports the company's ability to invest in growth opportunities and manage financial obligations, ensuring long-term sustainability.

Profit Margins

Strong profit margins highlight the company's operational efficiency and pricing power, essential for maintaining profitability in a competitive market.

Negative Factors

High Leverage

High leverage can increase financial risk, potentially impacting the company's ability to invest in growth and weather economic downturns.

Decreased EBIT Margin

A decrease in EBIT margin suggests potential challenges in maintaining operational efficiencies, which could affect future profitability.

Free Cash Flow Growth

Slowing free cash flow growth may limit the company's ability to fund new initiatives and manage debt, impacting long-term financial health.

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: Negative
• Last Price: 0.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 0.97 is below the 20-day moving average (MA) of 0.98, below the 50-day MA of 1.07, and below the 200-day MA of 1.05, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 36.99 is Neutral, neither overbought nor oversold. The STOCH value of 23.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$1.87B	1.79	18.04%	10.76%	7.71%	11.65%
0382	78 Outperform	HK$1.66B	2.94	11.86%	11.69%	7.59%	-30.36%
6169	69 Neutral	HK$2.21B	2.06	10.94%	―	0.40%	111.11%
1765	66 Neutral	HK$1.65B	3.75	4.28%	―	6.04%	-36.91%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1769	62 Neutral	HK$1.45B	8.90	20.01%	3.40%	23.95%	-1.00%
6068	47 Neutral	HK$168.98M	4.08	6.07%	―	-27.76%	-60.29%

China New Higher Education Group Ltd Corporate Events

China New Higher Education Group Sets 2026 AGM, Seeks Fresh Share Issuance Mandate

China New Higher Education Group Limited has convened its annual general meeting for 27 January 2026 in Hong Kong, where shareholders will be asked to approve the audited consolidated financial statements for the year ended 31 August 2025, re-elect executive director Li Xiaoxuan and independent non-executive director Dr. Pang Tsz Kit Peter, confirm directors’ remuneration arrangements, and reappoint Ernst & Young as the company’s auditor. The meeting will also seek a fresh mandate for the board to issue up to 20% of the company’s existing share capital, with an additional buffer linked to any future share buy-backs, reinforcing the board’s capital-raising flexibility under Hong Kong listing rules and potentially enabling further funding for strategic initiatives while maintaining compliance with shareholder approval thresholds.

The most recent analyst rating on (HK:2001) stock is a Buy with a HK$1.50 price target. To see the full list of analyst forecasts on China New Higher Education Group Ltd stock, see the HK:2001 Stock Forecast page.

China New Higher Education’s Yun Ai Unit Sets Up RMB430 Million Trust Cooperation with Zhongyuan Trust

China New Higher Education Group’s subsidiary Yun Ai Group has entered into a five-year cooperation agreement with Zhongyuan Trust under which Yun Ai will inject up to RMB430 million into a jointly established trust plan. Zhongyuan Trust will act as trustee and manager, providing asset management, financial consultancy and risk management consultancy services to the group, enabling it to leverage Zhongyuan Trust’s resources, information and investment capabilities. The deal is classified as a discloseable transaction under Hong Kong listing rules, triggering reporting and announcement requirements but exempting it from shareholder approval, and is aimed at supporting the group’s strategic planning and business development needs while potentially strengthening its capital management and financial risk control framework.

The most recent analyst rating on (HK:2001) stock is a Buy with a HK$1.50 price target. To see the full list of analyst forecasts on China New Higher Education Group Ltd stock, see the HK:2001 Stock Forecast page.

China New Higher Education Group Reports Strong 2025 Results with High Graduate Employment

China New Higher Education Group Ltd announced its annual results for the year ending 31 August 2025, highlighting a consistent high employment rate for graduates, with the 2025 initial employment rate reaching 98.22%. The company reported a 7.8% increase in revenue to RMB2.6 billion and a 5.2% rise in adjusted net profit to RMB0.81 billion, reflecting steady financial growth. The group continues to focus on high-quality development, increasing undergraduate enrollment and enhancing its brand competitiveness.

The most recent analyst rating on (HK:2001) stock is a Buy with a HK$1.50 price target. To see the full list of analyst forecasts on China New Higher Education Group Ltd stock, see the HK:2001 Stock Forecast page.

China New Higher Education Group Ltd Forms Nomination Committee to Strengthen Governance

China New Higher Education Group Ltd has established a Nomination Committee as part of its governance structure, in accordance with a resolution by its Board of Directors. This committee, primarily composed of independent non-executive directors, is tasked with overseeing the nomination process for board members, ensuring compliance with the Hong Kong Stock Exchange’s listing rules. The formation of this committee is a strategic move to enhance the company’s governance framework, potentially impacting its operational transparency and stakeholder trust.

The most recent analyst rating on (HK:2001) stock is a Buy with a HK$1.50 price target. To see the full list of analyst forecasts on China New Higher Education Group Ltd stock, see the HK:2001 Stock Forecast page.

China New Higher Education Group Schedules Board Meeting for Annual Results

China New Higher Education Group Ltd has announced a board meeting scheduled for November 28, 2025, to approve the annual results for the year ended August 31, 2025, and to consider the payment of a final dividend. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and potential shareholder returns.

The most recent analyst rating on (HK:2001) stock is a Buy with a HK$1.50 price target. To see the full list of analyst forecasts on China New Higher Education Group Ltd stock, see the HK:2001 Stock Forecast page.