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

• Market Cap: HK$2.37B
• Dividend Yield: 10%
• Average Volume (3M): 187.34K
• Price to Earnings (P/E): 4.7
• Beta (1Y): 0.37
• Revenue Growth: 10.84%
• EPS Growth: 5.62%
• Country: HK
• Employees: 2,800
• Sector: Technology
• Sector Strength: 91
• Industry: Education & Training Services
• EPS (TTM): 0.32
• Shares Outstanding: 646,213,130
• 10 Day Avg. Volume: 163,620
• 30 Day Avg. Volume: 187,339
• PEG Ratio: 0.99
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.24
• 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: 79 Outperform
• Price Target: HK$4.00 ▲(9.29%Upside)

The stock is led by excellent valuation metrics, offering a high dividend yield and low P/E ratio, which are significant positives. Technical analysis shows stable momentum. Financial performance is strong in terms of growth and profitability, but cash flow management needs attention.

Neusoft Education Technology Co. Limited Business Overview & Revenue Model

Company Description

Neusoft Education Technology Co. Limited provides digital IT higher education services in the People's Republic of China. It offers full-time formal higher education services, continuing education services, and education resources and apprenticeship programs in the areas of computer science, digital media, information management service, and healthcare technology. The company was founded in 2000 and is headquartered in Dalian, the People's Republic of China.

How the Company Makes Money

Neusoft Education Technology Co. Limited makes money through a diversified revenue model that includes tuition fees from its higher education institutions and vocational training programs. The company also generates income from its online education platforms, which offer various courses and learning materials. Additionally, Neusoft Education collaborates with industry partners to provide customized training solutions, further augmenting its revenue streams. Strategic partnerships with technology companies and educational institutions enhance its offerings, attracting more students and corporate clients, thus contributing significantly to its earnings.

Neusoft Education Technology Co. Limited Financial Statement Overview

Summary

Strong revenue growth and profitability with healthy margins. The balance sheet shows moderate leverage but rising debt is a concern. Cash flow management needs improvement, especially in maintaining consistent free cash flow.

Income Statement

The company has shown consistent revenue growth with a Revenue Growth Rate of 13.08% from 2023 to 2024. The Gross Profit Margin is strong at 47.42%, and the Net Profit Margin has improved to 22.80%. EBIT and EBITDA Margins are also robust at 32.71% and 43.76%, respectively, reflecting strong operational efficiency.

Balance Sheet

The Debt-to-Equity Ratio is 1.36, indicating moderate leverage. The Return on Equity (ROE) is healthy at 20.19%, and the Equity Ratio is 31.34%, suggesting a reasonable level of stability. However, the increasing debt levels over the years pose a potential risk.

Cash Flow

There is a lack of data for 2024, but previous years show fluctuating Free Cash Flow. The Operating Cash Flow to Net Income Ratio was 1.71 in 2023, indicating good cash generation relative to profits. The Free Cash Flow to Net Income Ratio was 0.44, suggesting some potential for improvement in free cash flow management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.04B	1.81B	1.55B	1.36B	1.10B
Gross Profit	968.55M	865.08M	666.74M	591.43M	421.09M
EBITDA	893.43M	870.29M	788.88M	594.36M	318.52M
Net Income	465.62M	429.54M	385.39M	284.22M	102.94M
Balance Sheet
Total Assets	7.36B	6.69B	5.99B	5.40B	4.11B
Cash, Cash Equivalents and Short-Term Investments	1.89B	1.80B	1.57B	1.36B	1.46B
Total Debt	3.14B	2.76B	2.43B	2.22B	1.21B
Total Liabilities	5.04B	4.63B	4.26B	3.90B	2.32B
Stockholders Equity	2.31B	2.06B	1.73B	1.50B	1.60B
Cash Flow
Free Cash Flow	179.09M	190.62M	244.70M	-380.57M	166.20M
Operating Cash Flow	702.36M	735.90M	797.24M	721.68M	574.82M
Investing Cash Flow	-668.90M	-320.31M	-790.35M	-1.23B	-657.47M
Financing Cash Flow	-78.31M	108.09M	-60.14M	323.22M	978.10M

Neusoft Education Technology Co. Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9616, the sentiment is Positive. The current price of 3.66 is above the 20-day moving average (MA) of 3.47, above the 50-day MA of 3.44, and above the 200-day MA of 2.86, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 71.96 is Negative, neither overbought nor oversold. The STOCH value of 78.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
9616	79 Outperform	HK$2.37B	4.69	21.39%	10.00%	10.84%	5.62%
Sector *	50 Neutral	C$2.97B	1.98	-63.12%	2.50%	11.24%	-12.42%
HE1	―	€172.44M	1.28	7.59%	―	―	―
2001	80 Outperform	HK$2.19B	2.56	18.95%	0.46%	9.07%	5.93%
0382	75 Outperform	HK$1.96B	2.84	15.41%	12.05%	9.66%	-8.34%
6169	74 Outperform	HK$2.09B	2.76	7.75%	―	1.32%	-20.13%
1769	63 Neutral	HK$1.97B	11.89	26.84%	―	46.88%	67.94%

Neusoft Education Technology Co. Limited Corporate Events

Neusoft Education Completes Strategic Acquisition and Investment

Neusoft Education Technology Co. Limited, through its wholly-owned subsidiary Neusoft Ruixin, has completed a significant transaction involving the acquisition and capital contribution to Dalian Xikang Yunshe Kang Travel Investment Management Co., Ltd. This transaction, finalized on June 30, 2025, grants Neusoft Ruixin a 9.9341% equity interest in the target company, although it will not result in the target company becoming a subsidiary of Neusoft Education Technology Co. Limited, nor will its financial results be consolidated into Neusoft’s financial statements.

Neusoft Education Expands Land Acquisition in Dalian

Neusoft Education Technology Co. Limited, through its consolidated affiliated entity Dalian Neusoft University of Information, is involved in the acquisition of land use rights in the High-tech Industrial Zone in Dalian City, Liaoning Province, China. The company has entered into supplementary terms with the Dalian Natural Resources Bureau to adjust the building area of Land Parcel B and increase the land grant fee, reflecting a strategic move to expand its infrastructure and operational capacity.

Neutech Group Limited Announces AGM Results and Dividend Payment

Neutech Group Limited announced the successful passage of all proposed resolutions at its Annual General Meeting held on May 30, 2025. The company also approved a final dividend payment of HK$38.8 cents per ordinary share for the year ending December 31, 2024, which will be distributed to shareholders on September 17, 2025.

Neusoft Education Technology Invests in Xikang Yunshe

Neusoft Education Technology Co. Limited, through its wholly-owned subsidiary, has entered into agreements to acquire a 4.2255% stake in Xikang Yunshe and make a capital contribution of RMB45 million. This strategic move, involving a total investment of RMB75 million, aims to strengthen Neusoft’s position in the market, although it will not result in the Target Company becoming a subsidiary or its financial results being consolidated into Neusoft’s financial statements.

Neusoft Education Adjusts Construction Contract for Healthcare Park Dormitory

Neusoft Education Technology Co. Limited, through its consolidated affiliated entity Dalian Neusoft University of Information, is involved in a construction project for the Neuedu Healthcare Technology Park Dormitory. The company has entered into a supplementary agreement with Dalian Huayu Construction Group Co., Ltd., adjusting the fixed consideration for the project to RMB272,477,515.84, reflecting a slight increase from the initial tentative consideration.

Neusoft Education Technology Announces AGM and Key Resolutions for 2025

Neusoft Education Technology Co. Limited has announced its upcoming annual general meeting (AGM) scheduled for May 30, 2025, in Dalian, China. The meeting will address several key resolutions, including the adoption of the company’s audited financial statements for the year ending December 31, 2024, the declaration of a final dividend, the re-election of directors, and the re-appointment of Ernst & Young as auditors. Additionally, the company seeks approval for the directors to allot and issue additional shares, which could impact the company’s market operations and shareholder value.