China General Education Group Limited (2175) AI Stock Analysis

• Market Cap: HK$1.04B
• Dividend Yield: N/A
• Average Volume (3M): 141.43K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.33
• Revenue Growth: -0.48%
• EPS Growth: -26.92%
• Country: HK
• Employees: 1,179
• Sector: Consumer Defensive
• Sector Strength: 46
• Industry: Education & Training Services
• EPS (TTM): 0.12
• Shares Outstanding: 505,517,000
• 10 Day Avg. Volume: 92,600
• 30 Day Avg. Volume: 141,433
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$2.00
• Price Target Upside: -7.83% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: HK$2.00 ▼(-7.83% Downside)

The overall score reflects strong financial stability and revenue growth, but is tempered by operational challenges and bearish technical indicators. The stock's valuation is reasonable, but the lack of dividend yield and weak market momentum are concerns.

China General Education Group Limited Business Overview & Revenue Model

Company Description

China General Education Group Limited (2175) is a company engaged in providing educational services in China. It operates private schools offering a range of educational programs from kindergarten to high school, with a focus on high-quality education and comprehensive development of students. The company is committed to fostering a nurturing learning environment that emphasizes both academic excellence and personal growth.

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

China General Education Group Limited shows strong revenue growth and a stable financial position with low leverage. However, operational efficiency is a concern, as indicated by the recent drop in EBIT margin and negative free cash flow. The company should focus on enhancing operational performance and managing capital expenditures to improve cash flow sustainability.

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
EBITDA	154.99M	180.52M	141.79M	168.54M	160.45M
Net Income	108.42M	137.26M	103.19M	129.76M	142.76M
Balance Sheet
Total Assets	2.05B	1.96B	1.85B	1.89B	1.17B
Cash, Cash Equivalents and Short-Term Investments	766.02M	823.86M	860.42M	1.07B	400.78M
Total Debt	19.06M	19.50M	0.00	0.00	0.00
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: Neutral
• Last Price: 2.17
• 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:2175, the sentiment is Neutral. The current price of 2.17 is above the 20-day moving average (MA) of 2.09, below the 50-day MA of 2.33, and below the 200-day MA of 2.41, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 49.50 is Neutral, neither overbought nor oversold. The STOCH value of 45.29 is Neutral, 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
2175	64 Neutral	HK$1.04B	10.15	5.09%	―	-0.48%	-26.92%
Sector *	63 Neutral	$20.46B	14.47	-3.60%	3.13%	2.63%	-6.18%
HE1	―	€171.72M	1.56	7.59%	―	―	―
1525	76 Outperform	HK$1.23B	4.84	9.98%	6.69%	2.12%	-23.09%
1593	―	HK$1.34B	36.83	4.06%	―	―	―
2001	75 Outperform	HK$2.19B	2.56	18.95%	7.63%	9.07%	5.93%
1935	74 Outperform	HK$1.36B	4.01	10.97%	―	10.10%	-21.18%

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.