China Beststudy Education Group (3978) AI Stock Analysis

• Market Cap: HK$3.83B
• Dividend Yield: 2.41%
• Average Volume (3M): 993.15K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 1.13
• Revenue Growth: 122.06%
• EPS Growth: 129.31%
• Country: HK
• Employees: 3,072
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Education & Training Services
• EPS (TTM): 0.20
• Shares Outstanding: 847,221,000
• 10 Day Avg. Volume: 954,643
• 30 Day Avg. Volume: 993,149
• PEG Ratio: -0.10
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.56
• 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

• Rating: 69 Neutral
• Price Target: ―

China Beststudy Education Group is positioned favorably with strong revenue growth and improving profitability, despite historical financial volatility. The technical analysis suggests strong momentum, though caution is needed due to potential overbought signals. Valuation is reasonable, supporting the overall positive outlook for the stock. Investors should monitor the sustainability of cash flow improvements and be aware of potential price pullbacks.

China Beststudy Education Group Business Overview & Revenue Model

Company Description

China Beststudy Education Group (3978) is a prominent education service provider based in China. The company primarily operates in the educational services sector, offering a comprehensive range of tutoring services for students in various academic levels. It specializes in after-school tutoring programs, focusing on K-12 education, and aims to enhance students' academic performance through personalized and effective learning strategies. The company is committed to delivering high-quality educational content and fostering an environment conducive to learning and growth.

How the Company Makes Money

China Beststudy Education Group generates revenue primarily through tuition fees collected from students enrolled in its tutoring programs. The company's key revenue streams include fees from after-school tutoring services, which cover a wide range of subjects and cater to different educational needs. Additionally, the company may engage in partnerships with schools and educational institutions to expand its service offerings and reach. Significant factors contributing to its earnings include the growing demand for supplementary education in China, driven by a competitive academic environment and a focus on academic excellence. The company's ability to maintain high educational standards and adapt to educational trends also plays a crucial role in sustaining its revenue model.

China Beststudy Education Group Financial Statement Overview

Summary

China Beststudy Education Group has shown a strong recovery in its revenue and profitability, supported by improved efficiency in its operations. The balance sheet remains stable, with reasonable leverage and equity levels. While cash flow has shown positive trends, historical inconsistencies highlight potential risks. Overall, the company's financial health appears to be on an upward trajectory, with some caution advised due to past volatility.

Income Statement

The company shows strong revenue growth with a significant increase from the previous year, indicating recovery and expansion. Gross profit and net profit margins have improved, showing enhanced profitability. However, the historical revenue volatility and past net losses suggest some risk in sustaining this growth.

Balance Sheet

The debt-to-equity ratio is moderate, indicating a balanced leverage position, while the return on equity has improved significantly, highlighting efficient utilization of equity. The equity ratio reflects a stable financial structure, though past fluctuations in equity levels may pose some concern.

Cash Flow

Free cash flow has seen improvement but remains inconsistent, reflecting challenges in cash generation. The operating cash flow to net income ratio highlights periods of negative cash flow, which could impact future liquidity. Recent positive trends in free cash flow are encouraging but need to be sustained.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.10B	489.31M	491.13M	1.90B	1.69B
Gross Profit	510.12M	229.86M	173.06M	729.35M	596.62M
EBITDA	267.68M	203.56M	26.14M	89.33M	96.33M
Net Income	192.45M	91.25M	56.29M	-325.03M	129.68M
Balance Sheet
Total Assets	1.84B	1.05B	869.68M	1.32B	3.18B
Cash, Cash Equivalents and Short-Term Investments	740.27M	395.27M	338.21M	686.41M	1.49B
Total Debt	285.30M	190.42M	199.53M	570.60M	1.28B
Total Liabilities	1.18B	549.94M	318.87M	968.05M	2.39B
Stockholders Equity	653.71M	498.01M	407.86M	350.85M	798.34M
Cash Flow
Free Cash Flow	772.11M	273.60M	-76.04M	-182.90M	391.53M
Operating Cash Flow	824.44M	291.17M	-31.95M	-53.43M	450.82M
Investing Cash Flow	0.00	-144.52M	450.46M	-67.85M	45.23M
Financing Cash Flow	-109.33M	-59.77M	-434.58M	-361.33M	1.38M

China Beststudy Education Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.11
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3978, the sentiment is Positive. The current price of 5.11 is above the 20-day moving average (MA) of 5.06, below the 50-day MA of 5.15, and above the 200-day MA of 3.87, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.33 is Neutral, neither overbought nor oversold. The STOCH value of 65.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3978.

China Beststudy Education Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1765	77 Outperform	€1.46B	1.95	7.59%	―	1.93%	―
2001	73 Outperform	HK$1.76B	2.05	18.95%	0.57%	9.07%	5.93%
3978	69 Neutral	HK$3.83B	18.40	33.55%	2.41%	122.06%	129.31%
6169	62 Neutral	HK$1.90B	2.49	7.75%	―	1.32%	-20.13%
Sector *	56 Neutral	HK$23.98B	4.08	-1.57%	6.81%	0.06%	-64.88%
6068	52 Neutral	HK$229.64M	2.11	16.80%	51.89%	-41.24%	-36.17%

China Beststudy Education Group Corporate Events

China Beststudy Education Group Announces AGM and Key Resolutions

China Beststudy Education Group has announced its upcoming annual general meeting scheduled for May 16, 2025, in Guangzhou, China. Key agenda items include the approval of a final dividend of HK$12.3 cents per share, the re-election of several directors, the re-appointment of Deloitte Touche Tohmatsu as auditors, and a resolution to authorize the repurchase of up to 10% of the company’s shares. These actions are expected to impact the company’s governance and financial strategies, potentially influencing shareholder value and market perception.

China Beststudy Education Group Announces Share Purchase Under RSU Scheme

China Beststudy Education Group announced a voluntary purchase of 61,000 shares as part of its Restricted Share Unit (RSU) Scheme, reflecting confidence in its business outlook and strategy to attract talent. The board believes the current share price undervalues the company, and this move aims to align employee interests with shareholders, ensuring sustainable development.

China Beststudy Education Group Reports Strong Financial Growth in 2024

China Beststudy Education Group announced its audited consolidated financial results for the year ending December 31, 2024, showing significant growth. The company reported a 125.2% increase in revenue and a 114.0% rise in net profit compared to the previous year, indicating a strong financial performance and potential positive implications for stakeholders.

China Beststudy Education Group Declares Final Dividend for 2024

China Beststudy Education Group announced a final cash dividend of HKD 0.123 per share for the financial year ending December 31, 2024. The dividend will be paid on June 16, 2025, following shareholder approval on May 16, 2025. This announcement reflects the company’s financial health and commitment to returning value to its shareholders.

China Beststudy Education Group Reports Major Profit Surge in 2024

China Beststudy Education Group announced a significant increase in revenue and net profit for the year ending December 31, 2024. The company’s revenue rose between 114.5% and 135.0%, while net profit increased between 100.3% and 122.5%, attributed to successful quality transformation and AI technology integration in their services.