Neusoft Education Technology Co. Limited (9616) AI Stock Analysis

• Market Cap: HK$1.47B
• Dividend Yield: 15.28%
• Average Volume (3M): 339.11K
• Price to Earnings (P/E): 5.0
• Beta (1Y): 0.45
• Revenue Growth: 7.50%
• EPS Growth: -9.67%
• Country: HK
• Employees: 2,800
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Specialty Business Services
• EPS (TTM): 0.35
• Shares Outstanding: 646,219,700
• 10 Day Avg. Volume: 171,280
• 30 Day Avg. Volume: 339,106
• PEG Ratio: 0.35
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.73
• P/FCF Ratio: 8.34
• 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): 0.71
• Revenue Forecast (FY): HK$2.23B

• Rating: 69 Neutral
• Price Target: HK$2.50 ▼(-1.19% Downside)
• Action: Reiterated Date: 10/26/25
• Date: Action: Reiterated 10/26/25

The overall stock score of 69 reflects a solid financial performance and attractive valuation, offset by bearish technical indicators. The company's strong cash flow and profitability metrics are positive, but operational challenges and a bearish trend in technical analysis suggest caution. The low P/E ratio and high dividend yield offer potential value for investors.

Positive Factors

Free Cash Flow Growth

A 159.5% TTM rise in free cash flow shows materially improved cash generation, giving the company durable funding for R&D, platform scaling, debt reduction, or shareholder returns. Strong FCF underpins operational resilience and strategic optionality over coming quarters.

High Gross Margin

A 42.8% gross margin reflects favorable product economics from software and digital content, supporting long-term profitability even under pricing pressure. High structural margins enable continued investment in AI, content, and platform features that sustain competitive differentiation.

Efficient Capital Returns

ROE of 17.1% TTM indicates effective use of shareholder capital and consistent profit generation relative to equity. This level of profitability supports reinvestment and potential distributions, reflecting a durable capacity to deliver shareholder value if revenue trends stabilize.

Negative Factors

Revenue Growth Decline

Negative revenue growth of -1.07% TTM signals weakening top-line momentum; sustained declines would reduce scale benefits and limit the firm's ability to amortize content and platform costs. Recovering growth is necessary to ensure durable margin and cash generation trends.

EBIT Margin Pressure

A significant decline in EBIT margin points to rising operating costs or reduced operating leverage. Persistent EBIT pressure erodes core profitability and free cash flow conversion, constraining reinvestment in product development and weakening long-term competitiveness.

Slightly Elevated Leverage

A debt-to-equity ratio of 1.39, while described as manageable, is on the higher side for an education software provider. Elevated leverage reduces financial flexibility, increases refinancing risk and could limit strategic investments if revenue growth remains muted.

Neusoft Education Technology Co. Limited Business Overview & Revenue Model

Company Description

Neutech Group Limited, an investment holding company, provides digital talent education services in the People's Republic of China. The company operates through two segments, Education Business; and Healthcare and Wellness Business. The Education Business segment comprises full-time formal higher education services, educational resources and apprenticeship program, and lifelong education services. The Healthcare and Wellness Business segment offers medical and wellness services. It also operates universities, which provides bachelor's degree programs, junior college diploma programs, and junior college to bachelor's degree transfer programs. In addition, the company engages in publishing, software development, and property and estate management activities, as well as provision of training, medical, healthcare, and hotel services, as well as medical business and hospital management services. Further, it sells medical devices. The company was formerly known as Neusoft Education Technology Co. Limited and changed its name to Neutech Group Limited in January 2025. Neutech Group Limited was founded in 2000 and is headquartered in Dalian, the People's Republic of China.

How the Company Makes Money

Neusoft Education generates revenue primarily through the sale of its educational software and online learning platforms. The company charges subscription fees for access to its digital content and services, which include personalized learning experiences and administrative tools for schools and educational institutions. Additionally, Neusoft Education earns revenue from partnerships with schools and universities that integrate its technology into their curricula. The company's strategic alliances with technology firms and educational organizations further enhance its offerings and market reach, contributing to its overall earnings.

Neusoft Education Technology Co. Limited Financial Statement Overview

Summary

Neusoft Education Technology Co. Limited demonstrates a solid financial foundation with strong profitability and cash flow metrics. However, the recent decline in revenue growth and EBIT margin suggests potential operational challenges. The company should focus on enhancing operational efficiency and sustaining revenue growth to maintain its financial health.

Income Statement

The income statement shows mixed results. The company has a strong gross profit margin of 42.8% TTM, indicating efficient cost management. However, the revenue growth rate has turned negative at -1.07% TTM, signaling potential challenges in maintaining sales momentum. The net profit margin remains healthy at 19.6% TTM, but the EBIT margin has significantly declined, reflecting operational inefficiencies.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.39 TTM, which is manageable but slightly elevated. The return on equity is solid at 17.1% TTM, showcasing effective use of shareholder funds. However, the equity ratio is not explicitly calculated, indicating a need for careful monitoring of leverage levels.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth rate of 159.5% TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.33 TTM, suggesting adequate cash flow coverage. The free cash flow to net income ratio of 0.59 TTM highlights the company's ability to convert earnings into cash effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.00B	2.04B	1.81B	1.55B	1.36B	1.10B
Gross Profit	856.03M	968.55M	865.08M	666.74M	591.43M	421.09M
EBITDA	826.46M	893.43M	870.29M	788.88M	594.36M	318.52M
Net Income	392.13M	465.62M	429.54M	385.39M	284.22M	74.25M
Balance Sheet
Total Assets	7.37B	7.36B	6.69B	5.99B	5.40B	4.11B
Cash, Cash Equivalents and Short-Term Investments	1.63B	1.89B	1.78B	1.57B	1.36B	1.46B
Total Debt	3.17B	3.14B	2.76B	2.43B	2.22B	1.21B
Total Liabilities	5.07B	5.04B	4.63B	4.26B	3.90B	2.32B
Stockholders Equity	2.28B	2.31B	2.06B	1.73B	1.50B	1.60B
Cash Flow
Free Cash Flow	472.82M	179.09M	190.62M	244.70M	-380.57M	166.20M
Operating Cash Flow	796.43M	702.36M	735.90M	797.24M	721.68M	574.82M
Investing Cash Flow	-699.97M	-668.90M	-320.31M	-790.35M	-1.23B	-657.47M
Financing Cash Flow	485.00M	-78.31M	108.09M	-60.14M	323.22M	978.10M

Neusoft Education Technology Co. Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9616, the sentiment is Negative. The current price of 2.53 is above the 20-day moving average (MA) of 2.31, above the 50-day MA of 2.42, and below the 200-day MA of 2.73, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 42.52 is Neutral, neither overbought nor oversold. The STOCH value of 41.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:9616.

Neusoft Education Technology Co. Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2001	81 Outperform	HK$1.64B	2.11	17.52%	10.76%	7.71%	11.65%
0382	72 Outperform	HK$1.72B	3.38	11.86%	11.69%	7.59%	-30.36%
9616	69 Neutral	HK$1.47B	5.00	17.73%	15.28%	7.50%	-9.67%
6169	69 Neutral	HK$2.21B	1.98	10.86%	―	0.40%	111.11%
1765	66 Neutral	HK$1.42B	3.89	4.28%	―	6.04%	-36.91%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1769	62 Neutral	HK$1.16B	7.69	18.62%	3.40%	23.95%	-1.00%

Neusoft Education Technology Co. Limited Corporate Events

Neusoft Education Signs Major Construction Contracts

Neusoft Education Technology Co. Limited has announced the signing of several construction contracts through its consolidated affiliated entities, Guangdong University, Chengdu University, and Dalian University, with Huayu Construction. These contracts involve significant construction projects, including the Neutech International Conference Center and the Dujiangyan Qingchengshan Neutech Digital Art Development Center, with a combined tentative consideration of over RMB183 million. The transactions are classified as discloseable under the Hong Kong Stock Exchange Listing Rules, requiring notification and announcement but exempt from circular and independent shareholders’ approval.

The most recent analyst rating on (HK:9616) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Neusoft Education Technology Co. Limited stock, see the HK:9616 Stock Forecast page.