China Beststudy Education Group (3978) AI Stock Analysis

• Market Cap: HK$3.89B
• Dividend Yield: 5.04%
• Average Volume (3M): 1.49M
• Price to Earnings (P/E): 12.6
• Beta (1Y): 1.16
• Revenue Growth: 174.65%
• EPS Growth: 145.66%
• Country: HK
• Employees: 3,072
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.22
• Shares Outstanding: 847,221,000
• 10 Day Avg. Volume: 1,953,543
• 30 Day Avg. Volume: 1,488,212
• PEG Ratio: 0.12
• Price to Book (P/B): 4.00
• Price to Sales (P/S): 2.37
• P/FCF Ratio: 3.39
• 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: 64 Neutral
• Price Target: HK$5.50 ▲(15.06% Upside)

The overall stock score of 64 reflects a balanced view of China Beststudy Education Group's financial recovery and stable valuation. The positive financial performance and reasonable valuation are slightly offset by technical indicators suggesting potential bearish momentum. Investors should be cautious of historical cash flow inconsistencies.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for educational services and successful market expansion, supporting long-term business sustainability.

Profitability Improvement

Improved profitability margins suggest better cost management and operational efficiency, which can enhance long-term financial health and competitiveness.

Stable Balance Sheet

A stable balance sheet with moderate leverage enhances financial flexibility and reduces risk, supporting sustainable growth and investment capacity.

Negative Factors

Cash Flow Inconsistencies

Inconsistent cash flow generation could impact liquidity and limit the company's ability to invest in growth opportunities or weather economic downturns.

Historical Revenue Volatility

Revenue volatility and past losses highlight potential challenges in maintaining consistent growth, which could affect long-term stability and investor confidence.

Past Equity Fluctuations

Fluctuations in equity levels can indicate instability in financial management, potentially affecting the company's ability to secure financing or invest in strategic initiatives.

China Beststudy Education Group Business Overview & Revenue Model

Company Description

China Beststudy Education Group provides after-school education services for K-12 student groups in China. The company offers education related courses, such as full-time test preparation programs, which aims to help middle school and high school graduates to be admitted to their preferred schools; talent education solutions to promote the all-round development of students that allows an engaging and enjoyable learning process; after-school tutoring program, which targets to help students establish a sound learning thinking and knowledge system, as well as to develop good learning habits; self-study program to improve students' soft power of learning through self-study model; and vocational education to cultivate various types of vocational and technical talents needed by the country and society with the support of public vocational colleges. It also provides management consultancy, internet information, publicity and advertising, and technical support and development services, as well as engages in the investment activities. The company was founded in 1997 and is headquartered in Guangzhou, China.

How the Company Makes Money

China Beststudy Education Group generates revenue through multiple streams, primarily by charging tuition fees for its various educational programs, including language courses, vocational training, and consulting services for students looking to study abroad. The company may also earn income through partnerships with educational institutions and organizations that provide referral fees or commissions for successful placements. Additionally, the company could benefit from government grants or subsidies aimed at promoting education and international exchanges. Its ability to adapt to market demands and establish strategic alliances with schools and universities enhances its revenue potential.

China Beststudy Education Group Financial Statement Overview

Summary

China Beststudy Education Group has shown a strong recovery in revenue and profitability, supported by improved operational efficiency. The balance sheet is stable with reasonable leverage, but cash flow inconsistencies pose potential risks. Overall, financial health is improving, but caution is 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.70B	1.10B	489.31M	491.13M	1.90B	1.69B
Gross Profit	780.53M	510.12M	229.86M	173.06M	729.35M	596.62M
EBITDA	388.82M	267.68M	203.56M	26.14M	261.67M	96.33M
Net Income	289.18M	192.45M	91.25M	56.29M	-325.03M	129.68M
Balance Sheet
Total Assets	2.04B	1.84B	1.05B	869.68M	1.32B	3.18B
Cash, Cash Equivalents and Short-Term Investments	963.86M	740.27M	395.27M	338.21M	686.41M	1.49B
Total Debt	341.12M	285.30M	190.42M	199.53M	570.60M	1.28B
Total Liabilities	1.25B	1.18B	549.94M	463.79M	968.05M	2.39B
Stockholders Equity	778.36M	653.71M	498.01M	407.86M	350.85M	798.34M
Cash Flow
Free Cash Flow	598.68M	772.11M	273.60M	-76.04M	-182.90M	391.53M
Operating Cash Flow	658.81M	824.44M	291.17M	-31.95M	-53.43M	450.82M
Investing Cash Flow	-556.12M	-485.01M	-144.52M	450.46M	-67.85M	45.23M
Financing Cash Flow	-125.44M	-109.33M	-59.77M	-434.58M	-361.33M	1.38M

China Beststudy Education Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 4.78 is below the 20-day moving average (MA) of 5.02, below the 50-day MA of 5.17, and below the 200-day MA of 4.84, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 37.27 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2001	81 Outperform	HK$2.19B	2.09	18.04%	9.69%	7.71%	11.65%
1890	80 Outperform	€2.97B	3.44	―	8.97%	7.37%	2.70%
0382	78 Outperform	HK$1.67B	2.40	11.86%	11.86%	7.59%	-30.36%
1969	72 Outperform	HK$5.28B	6.10	19.40%	4.58%	9.69%	7.31%
3978	64 Neutral	HK$3.89B	12.58	44.08%	5.04%	174.65%	145.66%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1769	62 Neutral	HK$2.00B	12.22	20.01%	2.80%	23.95%	-1.00%

China Beststudy Education Group Corporate Events

China Beststudy Education Group Enhances RSU Scheme with Share Purchase

China Beststudy Education Group announced the purchase of 101,000 shares on the open market as part of its Restricted Share Unit (RSU) Scheme. The board believes the current share price undervalues the company, and this move aims to align employee interests with those of the company, attract talent, and create value for shareholders while maintaining sustainable business development.

The most recent analyst rating on (HK:3978) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on China Beststudy Education Group stock, see the HK:3978 Stock Forecast page.

China Beststudy Education Group Enhances RSU Scheme with Share Purchase

China Beststudy Education Group announced the purchase of 100,000 shares on the open market as part of its Restricted Share Unit (RSU) Scheme. The board believes the current share price undervalues the company’s performance and sees this as an opportunity to align employee interests with those of the company, enhance talent attraction, and ensure sustainable business development.

The most recent analyst rating on (HK:3978) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on China Beststudy Education Group stock, see the HK:3978 Stock Forecast page.

China Beststudy Education Group Buys Shares to Boost Employee Alignment

China Beststudy Education Group announced the purchase of 179,000 shares as part of its Restricted Share Unit (RSU) Scheme, representing approximately 0.02% of the total issued shares. The board believes the current share price undervalues the company’s performance and sees this as an opportunity to align employee interests with company goals, attract talent, and create shareholder value.

The most recent analyst rating on (HK:3978) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on China Beststudy Education Group stock, see the HK:3978 Stock Forecast page.

China Beststudy Education Group Enhances RSU Scheme with Share Purchase

China Beststudy Education Group announced the purchase of 54,000 shares as part of its Restricted Share Unit (RSU) Scheme, reflecting confidence in its business outlook and strategy to align employee interests with company goals. The board believes the current share price undervalues the company’s performance, and the purchase aims to address share allocation under the RSU Scheme while maintaining sustainable business development.

The most recent analyst rating on (HK:3978) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on China Beststudy Education Group stock, see the HK:3978 Stock Forecast page.

China Beststudy Education Group Enhances RSU Scheme with Share Purchase

China Beststudy Education Group announced the purchase of 42,000 shares on the open market as part of its restricted share unit (RSU) scheme. The board believes the current share price undervalues the company, and the purchase is a strategic move to attract talent and align employee interests with those of the company, while maintaining sustainable business development.

The most recent analyst rating on (HK:3978) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on China Beststudy Education Group stock, see the HK:3978 Stock Forecast page.

China Beststudy Education Group Acquires Shares to Boost RSU Scheme

China Beststudy Education Group announced the purchase of 130,000 shares on the open market as part of its Restricted Share Unit (RSU) Scheme. The board believes the current share price undervalues the company’s performance and sees this as an opportunity to align employee interests with those of the company, attract talent, and enhance shareholder value.

China Beststudy Education Group Declares Interim Dividend

China Beststudy Education Group has announced an interim cash dividend of HKD 0.118 per share for the six months ending June 30, 2025. This decision reflects the company’s financial health and commitment to returning value to its shareholders, with the payment scheduled for October 16, 2025. The announcement may positively impact the company’s market positioning and shareholder relations.

China Beststudy Education Group Reports Robust Interim Financial Growth

China Beststudy Education Group has announced its unaudited interim financial results for the six months ending June 30, 2025, showcasing significant growth. The company reported a 188.9% increase in revenue to RMB 917,139,000 and a 178.5% rise in net profit to RMB 151,537,000 compared to the same period in 2024. This substantial financial performance reflects the company’s strengthened market position and operational efficiency, potentially benefiting stakeholders through increased profitability and market competitiveness.

China Beststudy Education Group Schedules Board Meeting for Interim Results

China Beststudy Education Group has announced that its board of directors will meet on August 21, 2025, to consider and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also address the potential payment of an interim dividend, which could impact the company’s financial strategy and shareholder returns.

China Beststudy Education Group Reports Strong Revenue and Profit Growth

China Beststudy Education Group has announced a positive profit alert for the first half of 2025, with expected revenue of no less than RMB850 million and a net profit of no less than RMB140 million, marking significant year-on-year growth. This growth is attributed to the improvement in the quality of their education products and successful market expansion in major cities, indicating a strong operational performance and enhanced industry positioning.