China General Education Group Limited (2175) AI Stock Analysis

• Market Cap: HK$1.51B
• Dividend Yield: N/A
• Average Volume (3M): 325.00K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.22
• Revenue Growth: -0.48%
• EPS Growth: -29.65%
• Country: HK
• Employees: 1,179
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.06
• Shares Outstanding: 505,517,000
• 10 Day Avg. Volume: 353,400
• 30 Day Avg. Volume: 325,000
• PEG Ratio: -0.59
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 3.99
• P/FCF Ratio: -18.06
• 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: 64 Neutral
• Price Target: HK$2.00 ▼(-40.48% Downside)

The overall stock score is primarily influenced by strong financial performance, despite concerns about operational efficiency and cash flow sustainability. Technical analysis indicates a bearish trend, while valuation suggests the stock is reasonably priced. The lack of dividend yield and earnings call data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to attract and retain students, which is crucial for long-term success in the education sector.

Financial Stability

A strong equity base and low leverage enhance financial stability, providing resilience against economic fluctuations and enabling strategic investments.

Operating Cash Flow

Improved operating cash flow suggests efficient cash management, which supports ongoing operations and potential growth initiatives.

Negative Factors

Operational Efficiency

A drop in EBIT margin indicates potential inefficiencies, which could hinder profitability and require management focus to optimize operations.

Free Cash Flow Constraints

Negative free cash flow limits financial flexibility, potentially restricting the company's ability to invest in growth opportunities or manage unexpected expenses.

Earnings Growth

Negative EPS growth reflects challenges in maintaining profitability, which could impact investor confidence and long-term financial health.

China General Education Group Limited Business Overview & Revenue Model

Company Description

China General Education Group Limited provides private higher education services in Shanxi Province, the People's Republic of China. It operates a private undergraduate college, Shanxi Technology and Business College, which offers bachelor's degree programs in accounting, auditing, civil engineering, business administration, computer science and technology, and preschool education, as well as internet technology, child massage healthcare, and early education concentration. The company was founded in 2004 and is headquartered in Taiyuan, the People's Republic of China. China General Education Group Limited is a subsidiary of Niusanping Limited.

How the Company Makes Money

China General Education Group Limited primarily generates revenue through tuition fees and related educational service charges. The company operates multiple private educational institutions, and its income is largely derived from student enrollments in these schools. Additionally, the company may receive ancillary income from extracurricular activities and educational consultancy services, although the primary revenue driver remains the core tuition fees. Partnerships with educational content providers and technology platforms could also play a role in enhancing its service offerings, potentially influencing revenue streams.

China General Education Group Limited Financial Statement Overview

Summary

The company shows strong revenue growth and a stable financial position with low leverage. However, operational efficiency is a concern due to the recent drop in EBIT margin and negative free cash flow. Focus on enhancing operational performance and managing capital expenditures is needed.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	330.14M	331.14M	323.20M	305.88M	289.26M	271.08M
Gross Profit	154.68M	157.53M	174.90M	164.17M	171.93M	163.94M
EBITDA	118.80M	154.99M	180.52M	141.79M	168.54M	164.05M
Net Income	92.56M	108.42M	137.26M	103.19M	129.76M	142.76M
Balance Sheet
Total Assets	2.07B	2.05B	1.96B	1.85B	1.89B	1.17B
Cash, Cash Equivalents and Short-Term Investments	595.68M	766.02M	823.86M	860.42M	1.07B	400.78M
Total Debt	385.00K	19.06M	19.50M	795.00K	0.00	0.00
Total Liabilities	196.20M	239.17M	252.77M	282.28M	311.26M	103.06M
Stockholders Equity	1.87B	1.82B	1.71B	1.56B	1.57B	1.07B
Cash Flow
Free Cash Flow	-140.71M	-73.25M	-85.61M	-51.86M	254.84M	-64.43M
Operating Cash Flow	146.27M	198.86M	79.81M	65.56M	351.40M	-25.44M
Investing Cash Flow	-161.76M	-315.00M	-152.41M	314.80M	-228.09M	-105.58M
Financing Cash Flow	-9.71M	-1.23M	19.00M	-124.08M	384.04M	8.32M

China General Education Group Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.36
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2175, the sentiment is Neutral. The current price of 3.36 is above the 20-day moving average (MA) of 3.20, above the 50-day MA of 3.27, and above the 200-day MA of 2.66, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 38.69 is Neutral, neither overbought nor oversold. The STOCH value of 2.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
2001	81 Outperform	HK$1.87B	1.79	18.04%	10.76%	7.71%	11.65%
1525	68 Neutral	HK$1.09B	4.68	8.59%	6.83%	-0.56%	-26.67%
1765	66 Neutral	HK$1.65B	3.75	4.28%	―	6.04%	-36.91%
1935	66 Neutral	HK$1.41B	4.62	9.02%	―	4.79%	-36.61%
2175	64 Neutral	HK$1.51B	16.96	4.06%	―	-0.48%	-29.65%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

China General Education Group Limited Corporate Events

China General Education Issues Revised Proxy Form for 2026 AGM After Clerical Error

China General Education Group Limited has issued a clarification regarding clerical errors in the proxy form previously circulated for its annual general meeting scheduled on 15 January 2026, confirming that ordinary resolution number 1 will indeed be put forward for shareholder approval. To ensure proper voting procedures, the group has published a revised proxy form and updated AGM notice, instructing shareholders to submit the new form—particularly those who had already lodged the original version—which will now be treated as revoked, while emphasizing that proxy submissions do not prevent investors from attending and voting in person at the meeting.

The most recent analyst rating on (HK:2175) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on China General Education Group Limited stock, see the HK:2175 Stock Forecast page.

China General Education Group Sets January 2026 AGM to Approve Results, Board Changes and Share Issue Mandate

China General Education Group Limited has convened its annual general meeting for 15 January 2026 in Taiyuan, Shanxi Province, where shareholders will review and adopt the audited consolidated financial statements and the reports of the board and independent auditor for the financial year ended 31 August 2025. The agenda includes the proposed re-election of two executive directors, Mr. Niu Xiaojun and Ms. Zhang Zhonghua, and independent non-executive director Mr. Zan Zhihong, along with authorization for the board to determine directors’ and auditor Moore CPA Limited’s remuneration, and to renew a general mandate allowing the board to issue up to 20% of the company’s existing share capital, supporting future fundraising flexibility and capital management.

The most recent analyst rating on (HK:2175) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on China General Education Group Limited stock, see the HK:2175 Stock Forecast page.

China General Education Explains Discounted Valuation in Strategic Education Acquisition

China General Education Group Limited has issued further details on its previously announced acquisition of a target education company, stating that the purchase price was set below an independently appraised value of RMB541.8 million after arm’s length negotiations. The board argues the discounted consideration is fair and reasonable because it reflects not only current valuation but also expected strategic synergies, as both the vendors and the group seek to expand in the less saturated private higher education and art exam training markets, which the company views as having strong growth potential. The valuation, prepared by an independent valuer using an income approach over a forecast period from September 2025 to August 2030, was chosen over asset-based and market approaches due to the target’s asset-light model, brand value and lack of comparable public transactions, and is based on assumptions of stable laws, industry policies, macroeconomic conditions and the absence of major disruptive events affecting the target’s operations.

The most recent analyst rating on (HK:2175) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on China General Education Group Limited stock, see the HK:2175 Stock Forecast page.

China General Education Group Limited Reports 2025 Annual Financial Results

China General Education Group Limited reported its annual financial results for the year ending August 31, 2025. The company experienced a slight decrease in revenue from RMB 331,138,000 in 2024 to RMB 329,792,000 in 2025, alongside a reduction in gross profit from RMB 157,528,000 to RMB 141,544,000. Despite these declines, the company maintained profitability with a net profit of RMB 76,333,000, although this was lower than the previous year’s RMB 108,416,000. The results reflect challenges in cost management and currency exchange impacts, which may influence the company’s strategic decisions and stakeholder expectations moving forward.

The most recent analyst rating on (HK:2175) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on China General Education Group Limited stock, see the HK:2175 Stock Forecast page.

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

China General Education Group Limited has announced a board meeting scheduled for November 27, 2025, to discuss and approve the consolidated annual results for the year ending August 31, 2025, and to consider the payment of a final dividend. This meeting could impact the company’s financial strategy and shareholder returns, potentially influencing its market positioning and stakeholder interests.

The most recent analyst rating on (HK:2175) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on China General Education Group Limited stock, see the HK:2175 Stock Forecast page.

China General Education Group Announces Strategic Acquisition

China General Education Group Limited has announced a significant acquisition, entering into an Equity Purchase Agreement to acquire 100% equity interest in Guangzhou Tongmeng Art Education Consulting Co., Ltd. This acquisition, which will make the target company a wholly-owned subsidiary, is a strategic move to consolidate the financial results of the target company and its subsidiaries into the group’s financial statements. The transaction is classified as a discloseable transaction under the Hong Kong Stock Exchange’s listing rules, subject to certain conditions being met. The acquisition’s completion is contingent upon fulfilling these conditions, and stakeholders are advised to exercise caution.

The most recent analyst rating on (HK:2175) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on China General Education Group Limited stock, see the HK:2175 Stock Forecast page.