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China Beststudy Education Group
(3978)
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Rating:69Neutral
Price Target:
HK$3.00
▼(-22.48% Downside)
Action:Downgraded
Date:06/26/26
The score is driven primarily by improved financial performance and an attractive valuation (low P/E and high dividend yield). These positives are tempered by weak technical conditions, with the stock trading below all key moving averages and negative momentum indicators, indicating a bearish trend despite oversold readings.
Positive Factors
Profitability
High operating and net margins in 2025 show the company runs a profitable education model. Durable margins help absorb tuition mix shifts, fund reinvestment and dividends, and provide a multi-month buffer versus competitors during cyclical demand swings.
Negative Factors
Historical Volatility
The business has shown material revenue and earnings volatility across recent years, including a loss in 2021. That history indicates exposure to regulatory, demand or operational shocks, raising the probability of future uneven performance and planning uncertainty.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability
High operating and net margins in 2025 show the company runs a profitable education model. Durable margins help absorb tuition mix shifts, fund reinvestment and dividends, and provide a multi-month buffer versus competitors during cyclical demand swings.
Read all positive factors
China Beststudy Education Group (3978) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$2.15B
Dividend Yield5.86%
Average Volume (3M)1.49M
Price to Earnings (P/E)6.4
Beta (1Y)1.01
Revenue Growth72.87%
EPS Growth54.16%
CountryHK
Employees3,072
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.39
Shares Outstanding847,221,000
10 Day Avg. Volume1,953,543
30 Day Avg. Volume1,488,212
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)3.34
Price to Sales (P/S)1.46
P/FCF Ratio5.66
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.42
Revenue Forecast (FY)HK$2.23B
China Beststudy Education Group Business Overview & Revenue Model
Company Description
Established in Guangzhou in 1997, China Beststudy Education Group delivers a comprehensive range of after-school educational programs primarily for K-12 students across China. Its core offerings include intensive full-time preparation courses desi...
How the Company Makes Money
The company primarily generates revenue by charging students (or their parents) tuition and service fees for education programs delivered through its learning centers and other teaching channels. Key revenue streams typically include fees from aft...
China Beststudy Education Group Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
64
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.90B | 1.10B | 489.31M | 491.13M | 1.90B |
| Gross Profit | 863.86M | 510.12M | 229.86M | 173.06M | 729.35M |
| EBITDA | 417.96M | 267.68M | 203.56M | 26.14M | 261.67M |
| Net Income | 301.47M | 192.45M | 91.25M | 56.29M | -325.03M |
Balance Sheet | |||||
| Total Assets | 2.29B | 1.84B | 1.05B | 869.68M | 1.32B |
| Cash, Cash Equivalents and Short-Term Investments | 1.30B | 740.27M | 395.27M | 338.21M | 686.41M |
| Total Debt | 336.22M | 285.30M | 190.42M | 199.53M | 570.60M |
| Total Liabilities | 1.44B | 1.18B | 549.94M | 463.79M | 968.05M |
| Stockholders Equity | 834.52M | 653.71M | 498.01M | 407.86M | 350.85M |
Cash Flow | |||||
| Free Cash Flow | 491.85M | 772.11M | 273.60M | -76.04M | -182.90M |
| Operating Cash Flow | 593.22M | 824.44M | 291.17M | -31.95M | -53.43M |
| Investing Cash Flow | -44.10M | -485.01M | -144.52M | 450.46M | -67.85M |
| Financing Cash Flow | -232.94M | -109.33M | -59.77M | -434.58M | -361.33M |
China Beststudy Education Group Technical Analysis
Negative
3.87
Price Trends
3.23
Negative
3.23
Negative
3.91
Negative
Market Momentum
-0.10
Positive
19.86
Positive
7.56
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3978, the sentiment is Negative. The current price of 3.87 is above the 20-day moving average (MA) of 3.20, above the 50-day MA of 3.23, and below the 200-day MA of 3.91, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 19.86 is Positive, neither overbought nor oversold. The STOCH value of 7.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3978.
China Beststudy Education Group Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | HK$3.31B | 17.32 | 15.20% | ― | 7.50% | 5.93% | |
73 Outperform | HK$59.39B | 17.43 | 10.79% | 1.07% | 12.18% | 11.28% | |
69 Neutral | HK$2.15B | 6.36 | 37.38% | 5.86% | 72.87% | 54.16% | |
68 Neutral | HK$8.12B | 9.31 | 12.68% | 3.15% | 12.22% | 45.94% | |
68 Neutral | HK$4.79B | 5.18 | 4.58% | 9.49% | 8.65% | 142.58% | |
64 Neutral | HK$1.49B | 1.67 | 8.83% | ― | 0.06% | 12.04% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
HK:3978
China Beststudy Education Group
2.87
-2.09
-42.20%
HK:9901
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35.88
-5.32
-12.91%
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6.61
5.22
375.54%
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China Yuhua Education Corp. Ltd.
0.35
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China East Education Holdings Limited
3.66
-2.60
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1.71
-1.06
-38.27%
China Beststudy Education Group Corporate Events
China Beststudy grants RSUs to 144 staff with performance-linked vesting
May 28, 2026
China Beststudy Education Group has granted 13,452,000 restricted share units to 144 employees under its RSU Scheme, representing about 1.58% of its issued share capital, with all shares to be acquired on the open market to avoid diluting existing...
China Beststudy Shareholders Approve All AGM Resolutions, Including Dividend and Buyback Mandate
May 6, 2026
China Beststudy Education Group reported that all resolutions proposed at its 6 May 2026 annual general meeting were approved by shareholders via poll. Investors endorsed the audited 2025 financial statements, a final dividend of HK$11.7 cents per...
China Beststudy Calls 2026 AGM With Dividend and Share Buyback Mandate on Agenda
Apr 13, 2026
China Beststudy Education Group has called its annual general meeting for 6 May 2026 in Hong Kong, where shareholders will review the audited financial statements for the year ended 31 December 2025 and vote on a proposed final dividend of HK$11.7...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.