Goldway Education Group Ltd. (8160) AI Stock Analysis

• Market Cap: HK$56.66M
• Dividend Yield: N/A
• Average Volume (3M): 145.32K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.05
• Revenue Growth: 11.36%
• EPS Growth: 4.80%
• Country: HK
• Employees: 96
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): -0.05
• Shares Outstanding: 145,271,940
• 10 Day Avg. Volume: 231,072
• 30 Day Avg. Volume: 145,319
• PEG Ratio: 0.07
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.82
• P/FCF Ratio: 17.05
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: HK$0.38 ▲(12.35% Upside)

The score is primarily constrained by weak financial performance—sharp revenue decline and worsening losses—despite manageable leverage and some positive cash generation. Technical indicators are neutral and do not offset the fundamentals, and valuation is hindered by a negative P/E and no dividend yield data.

Positive Factors

Balance sheet leverage

Sustained low-to-moderate leverage (debt-to-equity around 0.28) provides structural financial flexibility. It reduces refinancing and interest-rate risks, allowing management to fund operating needs, pursue modest investments or restructure without immediate need for dilutive capital, important while earnings recover.

Positive cash generation

Transition to positive operating and free cash flow is a durable improvement supporting liquidity and operations independent of accounting losses. If maintained, recurring cash generation reduces dependency on external funding, helps service obligations and funds targeted investments or restructuring over the next several quarters.

Prior multi-year revenue growth

A track record of prior multi-year growth indicates the business can scale and attract demand under favorable conditions. This historical capability suggests the company has operational and market know-how that could be redeployed to restore top-line momentum once enrollment or pricing headwinds ease.

Negative Factors

Sharp recent revenue contraction

A ~31% year decline materially erodes scale, revenue stickiness and pricing leverage in an education business. Persisting top-line losses reduce operating leverage, force deeper cost cuts, and lengthen the horizon for margin recovery, making a sustainable turnaround more difficult without structural changes.

Worsening profitability and margin compression

Deepening operating losses and a ~-25% net margin signal persistent pricing pressure or rising costs. Compressed gross margins undermine the firm's ability to fund SG&A and investments, erode equity, and may require permanent business-model changes or prolonged cost restructuring to restore sustainable profitability.

Cash flow volatility and coverage shortfall

Volatile free cash flow and low cash coverage versus accounting losses make operational planning and reinvestment uncertain. Even with a positive latest year, inconsistent cash generation raises the risk that future funding gaps would require external financing or asset sales, constraining strategic options over the medium term.

Goldway Education Group Ltd. Business Overview & Revenue Model

Company Description

Goldway Education Group Ltd. (8160) is an education services provider focused on delivering a range of educational programs and services. The company operates primarily in the private education sector, offering tutoring services, test preparation courses, and other educational resources aimed at students seeking to enhance their academic performance.

How the Company Makes Money

Goldway Education Group Ltd. generates revenue primarily through the provision of educational services, including tuition fees from students enrolled in its programs. The company offers a variety of courses and learning materials, catering to different educational needs, which attract diverse student enrollments. Additionally, Goldway Education Group Ltd. may engage in partnerships with educational institutions or organizations to expand its service offerings and reach, further contributing to its revenue streams.

Goldway Education Group Ltd. Financial Statement Overview

Summary

Goldway Education Group Ltd. shows moderate revenue growth but struggles with profitability and cash flow generation. While the balance sheet remains stable, rising debt levels and insufficient cash flow indicate potential risks. The company should focus on improving operational efficiencies and managing leverage to enhance financial health.

Income Statement

The company has experienced a moderate revenue growth rate of 4.88% from the previous year. However, profitability remains a concern as indicated by negative EBIT and net profit margins, with the latest net income showing a significant loss of HKD 6.4 million. EBITDA margin is positive, reflecting some operational cash flow generation, but overall profitability needs improvement.

Balance Sheet

The company maintains a stable equity position with an equity ratio of 61.82%. However, the debt-to-equity ratio increased to 0.35, indicating a rise in leverage. While the company has a strong asset base, the increasing debt levels could pose risks if not managed appropriately.

Cash Flow

Operating cash flow has declined significantly, resulting in zero free cash flow, which could pose liquidity challenges. The operating cash flow to net income ratio suggests inefficiencies in converting revenue into cash. A focus on improving cash flow generation is necessary for financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	54.59M	51.21M	45.79M	43.66M	35.90M	29.29M
Gross Profit	13.73M	11.48M	12.08M	12.74M	9.99M	7.51M
EBITDA	-5.88M	-1.80M	1.84M	3.51M	153.00K	2.98M
Net Income	-12.88M	-12.88M	-6.40M	-250.00K	-6.97M	-3.47M
Balance Sheet
Total Assets	58.15M	58.15M	62.20M	52.51M	37.17M	44.91M
Cash, Cash Equivalents and Short-Term Investments	14.78M	14.78M	7.34M	10.04M	17.76M	30.03M
Total Debt	10.29M	10.29M	13.42M	10.42M	6.13M	5.68M
Total Liabilities	17.65M	17.65M	20.38M	16.89M	9.00M	9.77M
Stockholders Equity	37.23M	37.23M	38.45M	32.33M	28.18M	35.14M
Cash Flow
Free Cash Flow	2.46M	2.46M	0.00	3.82M	-853.00K	6.97M
Operating Cash Flow	3.48M	3.48M	1.29M	4.44M	-16.00K	7.02M
Investing Cash Flow	-1.01M	-1.01M	-3.31M	-11.56M	5.31M	-51.00K
Financing Cash Flow	5.29M	5.29M	-50.00K	-346.00K	-4.36M	-4.57M

Goldway Education Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.34
• 50DMA: Negative
• 100DMA: Negative
• 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:8160, the sentiment is Negative. The current price of 0.34 is below the 20-day moving average (MA) of 0.38, below the 50-day MA of 0.38, and below the 200-day MA of 0.36, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 42.54 is Neutral, neither overbought nor oversold. The STOCH value of 39.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8160.

Goldway Education Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1775	48 Neutral	HK$170.56M	-6.88	-60.77%	―	22.97%	1.03%
8417	48 Neutral	HK$31.51M	-4.62	-13.57%	―	-13.68%	-129.41%
1871	47 Neutral	HK$159.00M	-9.89	-5.74%	―	-10.07%	-39.58%
8160	46 Neutral	HK$56.66M	-3.28	-42.79%	―	11.36%	4.80%