China Xinhua Education Group Limited (2779) AI Stock Analysis

• Market Cap: HK$997.32M
• Dividend Yield: 10.9%
• Average Volume (3M): 2.12M
• Price to Earnings (P/E): 2.5
• Beta (1Y): 0.82
• Revenue Growth: 0.87%
• EPS Growth: 9.69%
• Country: HK
• Employees: 2,559
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.17
• Shares Outstanding: 1,608,583,000
• 10 Day Avg. Volume: 1,294,900
• 30 Day Avg. Volume: 2,118,133
• PEG Ratio: 0.31
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 1.68
• P/FCF Ratio: 2.40
• 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: 69 Neutral
• Price Target: HK$0.50 ▼(-13.79% Downside)

China Xinhua Education Group Limited's stock is supported by strong financial performance and attractive valuation, with a low P/E ratio and high dividend yield. However, bearish technical indicators suggest caution due to potential downward price momentum.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for educational services, enhancing long-term business stability and market position.

Profit Margins

Strong profit margins reflect effective cost control and operational efficiency, supporting sustainable profitability over time.

Balance Sheet Health

A low debt-to-equity ratio indicates financial stability and flexibility, reducing risk and enabling growth investments.

Negative Factors

Lack of Recent Cash Flow Data

Without recent cash flow data, assessing liquidity and cash management efficiency is challenging, posing potential risks.

Cash Flow Analysis Limitations

Limited cash flow analysis restricts visibility into cash generation and financial health, impacting strategic decision-making.

Earnings Call Data Absence

Absence of earnings call data hinders insights into management's strategic outlook and operational challenges, affecting transparency.

China Xinhua Education Group Limited Business Overview & Revenue Model

Company Description

China Xinhua Education Group Limited provides higher education services in the People's Republic of China. The company invests in and operates four educational institutions, which include Xinhua University, an university-level education institution that offers undergraduate, junior college, and continuing education focusing on applied sciences; Xinhua School, a private secondary vocational school, which provides general, undergraduate oriented, and five-year junior college oriented secondary vocational education programs, as well as vocational education programs; School of Clinical Medicine, an independent college to train full-time undergraduate students; and Hongshan College, an independent college to train full-time undergraduate students. It also offers technical and management consultancy services. China Xinhua Education Group Limited was founded in 1999 and is headquartered in Hefei, China.

How the Company Makes Money

The company generates revenue through multiple streams, primarily by charging tuition fees for its vocational and training programs. These programs are tailored to meet the needs of both individual students and corporate clients looking for employee training solutions. Additionally, China Xinhua Education Group may earn income from partnerships with industry players, government educational initiatives, and grants or subsidies related to vocational education. The company’s ability to attract and retain students, along with its reputation for quality education, plays a significant role in driving its revenue growth.

China Xinhua Education Group Limited Financial Statement Overview

Summary

China Xinhua Education Group Limited demonstrates strong financial performance with consistent revenue growth, solid profit margins, and a healthy balance sheet with low leverage. However, the lack of recent cash flow data slightly limits the analysis.

Income Statement

China Xinhua Education Group Limited has demonstrated consistent revenue growth over the past years, with a solid revenue growth rate from 2023 to 2024. Gross profit and net profit margins are strong, indicating efficient cost management and profitability. The company also maintains a healthy EBIT and EBITDA margin, reflecting stable operating performance.

Balance Sheet

The company's balance sheet shows a relatively low debt-to-equity ratio, which suggests conservative leverage and financial stability. The return on equity is impressive, indicating effective utilization of shareholder funds. The equity ratio is strong, reflecting a solid capital structure and low reliance on debt.

Cash Flow

While the operating cash flow to net income ratio is not calculable due to missing data, historical free cash flow generation has been robust. However, the lack of recent cash flow data limits a comprehensive cash flow analysis. Nonetheless, past performance indicates efficient cash management and potential for future cash flow improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	654.91M	648.08M	642.66M	625.48M	565.39M	478.85M
Gross Profit	393.10M	392.26M	377.96M	368.70M	370.13M	311.06M
EBITDA	432.85M	396.49M	393.12M	324.39M	440.83M	401.70M
Net Income	373.43M	330.22M	307.10M	235.51M	354.48M	325.29M
Balance Sheet
Total Assets	4.72B	4.85B	4.48B	4.19B	3.96B	3.55B
Cash, Cash Equivalents and Short-Term Investments	616.33M	689.88M	524.64M	322.07M	475.89M	890.84M
Total Debt	589.41M	601.85M	546.25M	496.12M	456.73M	315.98M
Total Liabilities	751.13M	1.13B	1.01B	957.52M	896.87M	729.88M
Stockholders Equity	3.97B	3.72B	3.46B	3.23B	3.07B	2.82B
Cash Flow
Free Cash Flow	530.96M	452.35M	364.25M	383.69M	413.74M	303.67M
Operating Cash Flow	555.67M	480.43M	391.37M	428.95M	453.77M	403.37M
Investing Cash Flow	-456.57M	-531.75M	-281.36M	-467.96M	-844.45M	-914.92M
Financing Cash Flow	-44.06M	-51.56M	-57.48M	-140.88M	28.36M	-107.20M

China Xinhua Education Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.58
• 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:2779, the sentiment is Negative. The current price of 0.58 is below the 20-day moving average (MA) of 0.61, below the 50-day MA of 0.67, and below the 200-day MA of 0.63, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 41.40 is Neutral, neither overbought nor oversold. The STOCH value of 72.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2779.

China Xinhua Education Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1851	72 Outperform	HK$995.00M	6.29	15.11%	―	1.40%	-15.24%
2779	69 Neutral	HK$997.32M	2.48	9.80%	10.90%	0.87%	9.69%
1525	68 Neutral	HK$1.09B	4.72	8.59%	7.55%	-0.56%	-26.67%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1569	53 Neutral	HK$843.54M	―	-2.11%	4.92%	-20.92%	-121.60%

China Xinhua Education Group Limited Corporate Events

China Xinhua Education Reports Strong Interim Results for 2025

China Xinhua Education Group Limited announced its unaudited interim financial results for the six months ended June 30, 2025, showing a revenue increase of 1.9% to RMB 362,551,000 compared to the same period in 2024. The company reported a significant profit increase of 20.3% to RMB 256,334,000, indicating strong operational performance and potential positive implications for stakeholders.

The most recent analyst rating on (HK:2779) stock is a Buy with a HK$0.50 price target. To see the full list of analyst forecasts on China Xinhua Education Group Limited stock, see the HK:2779 Stock Forecast page.

China Xinhua Education Group Announces Board Meeting for Interim Results

China Xinhua Education Group Limited has announced that its Board of Directors will meet on August 29, 2025, to review and approve the interim results for the first half of 2025 and discuss the potential recommendation of an interim dividend. This meeting is significant as it could impact the company’s financial strategy and shareholder returns, reflecting its ongoing commitment to transparency and stakeholder engagement.