China Xinhua Education Group Limited (2779) AI Stock Analysis

• Market Cap: HK$997.32M
• Dividend Yield: 10.19%
• Average Volume (3M): 722.27K
• Price to Earnings (P/E): 2.8
• Beta (1Y): 0.74
• Revenue Growth: -1.33%
• EPS Growth: 4.95%
• Country: HK
• Employees: 2,559
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Education & Training Services
• EPS (TTM): 0.17
• Shares Outstanding: 1,608,583,000
• 10 Day Avg. Volume: 1,277,600
• 30 Day Avg. Volume: 722,266
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$0.50
• Price Target Upside: -20.63% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: HK$0.50 ▼(-20.63% Downside)

China Xinhua Education Group Limited's stock is supported by strong financial performance and an attractive valuation, with a low P/E ratio and high dividend yield. Technical analysis shows mixed signals, suggesting cautious optimism. The absence of recent earnings call data and corporate events does not detract from the overall positive outlook.

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

China Xinhua Education Group Limited generates revenue primarily through tuition fees collected from students enrolled in its higher education programs. Additional revenue streams include fees for lodging and other ancillary services provided to students. The company also benefits from government subsidies and grants aimed at supporting educational development. Strategic partnerships with businesses and educational institutions further enhance its offerings and financial performance.

China Xinhua Education Group Limited Financial Statement Overview

Summary

China Xinhua Education Group Limited shows strong financial performance with consistent revenue growth, robust profit margins, and a solid balance sheet with low leverage. Historical cash flow generation has been strong, though recent data is limited.

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

China Xinhua Education Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.63
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 0.63 is above the 20-day moving average (MA) of 0.59, above the 50-day MA of 0.60, and below the 200-day MA of 0.65, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 63.17 is Neutral, neither overbought nor oversold. The STOCH value of 68.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
2779	77 Outperform	HK$997.32M	2.79	9.21%	10.19%	-1.33%	4.95%
1525	76 Outperform	HK$1.18B	4.66	9.98%	6.99%	2.12%	-23.09%
Sector *	61 Neutral	$17.59B	13.29	-4.88%	3.05%	1.25%	-14.67%
1565	―	HK$596.13M	8.56	7.33%	5.50%	―	―
1569	56 Neutral	HK$725.45M	533.33	-2.11%	5.70%	-20.92%	-121.60%
1593	―	HK$1.36B	36.56	4.06%	―	―	―
1851	81 Outperform	HK$710.00M	3.91	17.84%	―	2.89%	1.19%

China Xinhua Education Group Limited Corporate Events

China Xinhua Education Enhances Governance with New Committee Appointments

China Xinhua Education Group Limited announced the appointment of Ms. Chen Ming and Mr. Yao Heping to its Nomination Committee, effective June 27, 2025. This move aligns with the amended corporate governance code and aims to enhance the board’s effectiveness and diversity, thereby strengthening the company’s corporate governance practices.

China Xinhua Education Group Announces Board Composition and Roles

China Xinhua Education Group Limited has announced the composition of its board of directors and the roles within its three board committees: Audit, Nomination, and Remuneration. This update provides clarity on the leadership structure, potentially impacting the company’s strategic direction and governance, which is crucial for stakeholders and investors.

China Xinhua Education Group Forms Nomination Committee to Enhance Board Diversity

China Xinhua Education Group Limited has established a Nomination Committee to oversee the structure, size, and diversity of its Board of Directors. The committee’s duties include reviewing the board’s composition annually, recommending changes to align with corporate strategy, and identifying qualified candidates for board membership, emphasizing diversity and merit.

China Xinhua Education Group Secures Strong Shareholder Support at AGM

China Xinhua Education Group Limited held its Annual General Meeting on June 26, 2025, where all proposed resolutions were passed with overwhelming support. The resolutions included the adoption of the company’s financial statements, re-election of directors, re-appointment of KPMG as auditors, and granting mandates to the board for share issuance and repurchase. This successful AGM reflects strong shareholder confidence and positions the company for continued strategic growth and operational stability.