Goldway Education Group Ltd. (8160) AI Stock Analysis

• Market Cap: HK$47.94M
• Dividend Yield: N/A
• Average Volume (3M): 145.32K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.17
• 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: 49 Neutral
• Price Target: HK$0.41 ▲(21.47% Upside)

The score is held down primarily by deteriorating financial performance (sharp revenue contraction and deeper losses), only partly offset by moderate leverage and some recent positive cash flow. Technicals are relatively supportive with price above major moving averages, but valuation remains weak due to negative earnings and no dividend yield data.

Positive Factors

Manageable leverage

Moderate debt levels (D/E ~0.28) preserve financial flexibility, reducing refinancing and interest burden risk. This allows management to prioritize operational recovery, investment in core programs, or opportunistic M&A without being constrained by heavy leverage over the next several quarters.

Positive operating and free cash flow

Recent conversion to positive operating and free cash flow provides an internal funding source to cover working capital and fund restructuring or product investment. Sustained cash generation helps bridge losses and supports continuity while margins and revenues are addressed.

Lean operating base

A small workforce suggests a lean cost structure and potential operating scalability. With fewer fixed personnel costs, the company can adjust capacity or reallocate resources more quickly, aiding margin recovery and efficient redeployment of capital as revenue trends normalize.

Negative Factors

Worsening profitability

Deepening operating losses and a ~-25% net margin materially weaken the company's ability to self-fund growth, invest in curriculum or technology, and return capital. Persistent losses erode equity and heighten financing needs, raising long-term viability concerns if not reversed.

Sharp recent revenue contraction

A ~31% year decline signals meaningful demand or market-share loss that may reflect structural issues in offerings or competition. Revenue setbacks hinder operating leverage recovery, extend the timeline to profitability, and increase reliance on cost cuts or external capital to stabilize operations.

Negative and deteriorating ROE

Consistently negative and worsening ROE indicates the business is destroying shareholder value rather than compounding it. This undermines investor confidence, limits access to equity capital on favorable terms, and constrains long-term growth investments absent a clear turnaround.

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

Weak fundamentals overall: revenue fell sharply in the latest year (~-31%) and losses deepened with a ~-25% net margin. Balance sheet leverage is moderate (debt-to-equity ~0.28) and latest-year operating/free cash flow were positive, but cash generation only partially offsets ongoing net losses and remains volatile.

Income Statement

Revenue growth has been inconsistent, with the latest annual period (2025-03-31) showing a sharp decline (about -31%) after modest growth in 2024 and strong growth in 2022–2023. Profitability is the main weakness: the company moved from near break-even in 2023 to deeper losses in 2024 and 2025, with the latest year showing negative operating profit and a net loss margin around -25%. Gross margin also compressed versus prior years, indicating weaker pricing power and/or cost pressure.

Balance Sheet

Leverage looks manageable, with debt-to-equity in the ~0.21–0.35 range across the periods and the latest year around 0.28, suggesting the balance sheet is not heavily debt-funded. However, shareholder returns are weak: return on equity is negative each year and deteriorated materially in the latest period, reflecting ongoing losses and limiting the balance sheet’s ability to compound value without an earnings turnaround.

Cash Flow

Cash generation is a relative bright spot recently: operating cash flow and free cash flow were positive in the latest year (2025-03-31), improving from 2024 when free cash flow was zero. That said, cash flow quality is mixed—cash flow remains low relative to the net loss (only partial coverage) and free cash flow growth is highly volatile year-to-year, including meaningfully negative growth in the latest period, which raises questions about sustainability.

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: Positive
• Last Price: 0.34
• 50DMA: Positive
• 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:8160, the sentiment is Positive. The current price of 0.34 is below the 20-day moving average (MA) of 0.36, below the 50-day MA of 0.38, and below the 200-day MA of 0.37, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 62.12 is Neutral, neither overbought nor oversold. The STOCH value of 36.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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%
8160	49 Neutral	HK$47.94M	-3.49	-42.79%	―	11.36%	4.80%
1775	49 Neutral	HK$223.87M	-8.54	-60.77%	―	22.97%	1.03%
1871	48 Neutral	HK$213.00M	-13.62	-5.74%	―	-10.07%	-39.58%
8417	48 Neutral	HK$31.51M	-4.87	-13.57%	―	-13.68%	-129.41%