China General Education Group Limited (2175) AI Stock Analysis

• Market Cap: HK$1.39B
• Dividend Yield: N/A
• Average Volume (3M): 55.77K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.26
• Revenue Growth: -0.48%
• EPS Growth: -26.92%
• Country: HK
• Employees: 1,179
• Sector: Consumer Defensive
• Sector Strength: 66
• Industry: Education & Training Services
• EPS (TTM): 0.12
• Shares Outstanding: 505,517,000
• 10 Day Avg. Volume: 90,500
• 30 Day Avg. Volume: 55,766
• PEG Ratio: 0.26
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.73
• 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

• Rating: 68 Neutral
• Price Target: HK$3.00 ▲(9.09%Upside)

The company's strong financial performance is offset by operational inefficiencies and neutral market momentum. Reasonable valuation supports the stock, but lack of dividend yield and negative free cash flow are concerns.

China General Education Group Limited Business Overview & Revenue Model

Company Description

China General Education Group Limited (2175) is an educational services provider based in China. The company primarily operates in the private education sector, offering a range of educational programs and services. Its core products include academic programs for K-12 education, vocational training, and other educational services aimed at enhancing student learning experiences and outcomes.

How the Company Makes Money

China General Education Group Limited generates revenue primarily through tuition fees charged for its educational programs. Key revenue streams include fees from K-12 academic programs, vocational training courses, and supplementary educational services provided to students. The company may also engage in partnerships with local schools and educational institutions to enhance its service offerings and expand its market reach, thereby contributing to its earnings.

China General Education Group Limited Financial Statement Overview

Summary

The company has strong revenue growth and low leverage, but operational efficiency is a concern due to a zero EBIT margin and negative free cash flow.

Income Statement

The company has demonstrated consistent revenue growth over the years with a slight dip in gross profit margin in the latest year. Net profit margin remains strong, indicating effective cost management. However, the EBIT margin has dropped to zero, which could signal operational challenges.

Balance Sheet

The company maintains a strong equity base with a low debt-to-equity ratio, reflecting financial stability and low leverage risk. The equity ratio is robust, suggesting good financial health and asset management. Return on equity remains positive, although it has decreased compared to previous years.

Cash Flow

Operating cash flow has improved significantly, but free cash flow is negative due to high capital expenditures. The operating cash flow to net income ratio indicates efficient cash management, although the free cash flow to net income ratio reflects cash constraints.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
331.14M	323.20M	305.88M	289.26M	271.08M
	Gross Profit
157.53M	174.90M	164.17M	171.93M	163.94M
	EBIT
89.87M	118.69M	94.79M	106.79M	122.29M
	EBITDA
154.99M	180.52M	141.79M	168.54M	160.45M
	Net Income Common Stockholders
108.42M	137.26M	103.19M	129.76M	142.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
766.02M	823.86M	860.42M	1.07B	400.78M
	Total Assets
2.05B	1.96B	1.85B	1.89B	1.17B
	Total Debt
19.06M	19.50M	0.00	0.00	0.00
	Net Debt
-676.84M	-794.34M	-860.42M	-594.69M	-89.13M
	Total Liabilities
239.17M	252.77M	282.28M	311.26M	103.06M
	Stockholders Equity
1.82B	1.71B	1.56B	1.57B	1.07B
Cash Flow		Free Cash Flow
-73.25M	-85.61M	-51.86M	254.84M	-64.43M
	Operating Cash Flow
198.86M	79.81M	65.56M	351.40M	-25.44M
	Investing Cash Flow
-315.00M	-152.41M	314.80M	-228.09M	-105.58M
	Financing Cash Flow
-1.23M	19.00M	-124.08M	384.04M	8.32M

China General Education Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.75
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2175, the sentiment is Positive. The current price of 2.75 is above the 20-day moving average (MA) of 2.66, above the 50-day MA of 2.71, and above the 200-day MA of 2.46, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 52.72 is Neutral, neither overbought nor oversold. The STOCH value of 59.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2175.

China General Education Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2175	68 Neutral	HK$1.39B	12.87	5.09%	―	-0.48%	-26.92%
Sector *	65 Neutral	$8.82B	14.91	4.71%	6.22%	3.60%	-2.66%
6169	64 Neutral	HK$1.97B	2.57	7.75%	―	1.32%	-20.13%
6068	57 Neutral	HK$231.81M	2.13	16.80%	51.40%	-41.24%	-36.17%

China General Education Group Limited Corporate Events

China General Education Group Announces Details of New RSU Scheme

China General Education Group Limited has released a supplemental announcement regarding its 2024 Annual Report, specifically focusing on the details of its new Restricted Share Unit (RSU) Scheme. The RSU Scheme is designed to incentivize employees, advisors, consultants, and other contributors to the company’s growth by granting them share units. The scheme allows the Board to select participants and grant RSUs without a maximum entitlement limit, subject to the company’s listing rules. The announcement clarifies that no RSUs have been granted yet, and the maximum number of shares that can be awarded under the scheme remains unchanged. This initiative is expected to align the interests of key stakeholders with the company’s long-term growth objectives.

China General Education Group Shifts to Electronic Corporate Communications

China General Education Group Limited announced new arrangements for disseminating corporate communications to its shareholders. Starting May 16, 2025, the company will primarily use electronic means to share these communications, with printed versions available upon request. This move aims to streamline communication and encourage shareholders to provide functional email addresses for efficient information dissemination.

China General Education Group Shifts to Electronic Corporate Communications

China General Education Group Limited has announced a shift to electronic dissemination of corporate communications, in line with updated Hong Kong Stock Exchange listing rules effective from December 31, 2023. This move eliminates the routine mailing of printed communications to non-registered holders, encouraging stakeholders to access information online, which may enhance operational efficiency and align with digital transformation trends in the industry.

China General Education Group Reports Interim Results with Stable Earnings Amid Revenue Dip

China General Education Group Limited announced its unaudited consolidated interim results for the six months ended 28 February 2025, reporting a slight decrease in revenue to RMB 183,057,000 from RMB 184,056,000 in the previous year. The company’s profit for the period was RMB 51,767,000, down from RMB 67,626,000, reflecting increased administrative expenses. Despite the decline in profit, the company maintained a stable earnings per share, indicating resilience in its operations amidst financial challenges.

China General Education Group Appoints New CFO Amid Leadership Change

China General Education Group Limited announced the resignation of its Chief Financial Officer, Ms. Xu Yanjie, due to personal health reasons, effective April 29, 2025. Ms. Wang Donghua has been appointed as the new CFO, bringing over 25 years of experience in auditing and finance, having previously served as the finance manager of Shanxi Tongshi Tiancai Educational Technology Co., Ltd. This change in leadership is expected to leverage Ms. Wang’s extensive experience to strengthen the company’s financial management and strategic direction.

China General Education Group Schedules Board Meeting for Interim Results and Dividend Consideration

China General Education Group Limited has announced an upcoming board meeting scheduled for April 29, 2025. The meeting will address the approval of the company’s consolidated interim results for the six months ending February 28, 2025, and consider the payment of an interim dividend. This announcement could impact the company’s financial strategy and shareholder returns.