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Shanghai Gench Education Group Limited
(1525)
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Rating:81Outperform
Price Target:
HK$2.50
▼(-6.72% Downside)
Action:Reiterated
Date:07/11/26
The score is driven primarily by attractive valuation (very low P/E and strong dividend yield) and solid underlying financial quality (strengthened balance sheet and strong profitability). Technicals are supportive, with price above key moving averages and positive MACD. The main constraints are slowing recent revenue growth, margin compression versus prior peaks, and uneven free-cash-flow consistency.
Positive Factors
Conservative balance sheet
Material deleveraging and consistent equity growth create durable financial flexibility. Lower leverage reduces refinancing and interest risks, enabling the company to absorb enrollment cycles, fund campus investments or dividends, and maintain operations during cyclical education demand shifts.
Negative Factors
Slowing revenue growth
A marked slowdown in top-line growth reduces the company's ability to scale fixed-cost absorption and fund strategic initiatives. If enrolment or pricing momentum remains weak, margin expansion and investment capacity will be constrained, pressuring medium-term earnings power.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Material deleveraging and consistent equity growth create durable financial flexibility. Lower leverage reduces refinancing and interest risks, enabling the company to absorb enrollment cycles, fund campus investments or dividends, and maintain operations during cyclical education demand shifts.
Read all positive factors
Shanghai Gench Education Group Limited (1525) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$957.54M
Dividend Yield6.31%
Average Volume (3M)349.20K
Price to Earnings (P/E)2.9
Beta (1Y)0.38
Revenue Growth11.39%
EPS Growth31.68%
CountryHK
Employees1,891
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.62
Shares Outstanding415,000,000
10 Day Avg. Volume144,250
30 Day Avg. Volume349,200
Financial Highlights & Ratios
PEG Ratio0.57
Price to Book (P/B)0.39
Price to Sales (P/S)0.96
P/FCF Ratio2.96
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.98
Revenue Forecast (FY)HK$1.23B
Shanghai Gench Education Group Limited Business Overview & Revenue Model
Company Description
Shanghai Gench Education Group Limited functions as an investment holding entity primarily focused on providing tertiary education services throughout the People's Republic of China. The company's main activity involves the management of a private...
How the Company Makes Money
The company primarily makes money by operating its higher education schools and charging students tuition and fees. Key revenue streams typically include: (1) tuition fees from enrolled students in undergraduate and junior college programs; (2) bo...
Shanghai Gench Education Group Limited Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
67
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.00B | 969.85M | 929.88M | 790.11M | 683.58M |
| Gross Profit | 544.65M | 539.89M | 574.38M | 504.98M | 421.68M |
| EBITDA | 401.00M | 366.64M | 448.68M | 375.46M | 356.10M |
| Net Income | 242.55M | 223.62M | 283.37M | 224.93M | 179.01M |
Balance Sheet | |||||
| Total Assets | 3.66B | 3.98B | 3.80B | 3.47B | 3.24B |
| Cash, Cash Equivalents and Short-Term Investments | 447.30M | 811.94M | 846.62M | 617.52M | 488.74M |
| Total Debt | 282.32M | 832.56M | 761.93M | 774.40M | 784.28M |
| Total Liabilities | 1.17B | 1.66B | 1.63B | 1.51B | 1.41B |
| Stockholders Equity | 2.49B | 2.32B | 2.17B | 1.96B | 1.83B |
Cash Flow | |||||
| Free Cash Flow | 325.09M | 116.48M | 212.28M | 266.52M | 272.52M |
| Operating Cash Flow | 441.67M | 308.95M | 467.75M | 435.26M | 412.24M |
| Investing Cash Flow | 257.03M | -476.39M | -464.19M | -174.42M | 32.31M |
| Financing Cash Flow | -648.77M | -36.65M | -114.49M | -141.83M | -497.38M |
Shanghai Gench Education Group Limited Technical Analysis
Negative
2.68
Price Trends
2.41
Negative
2.15
Positive
2.32
Negative
Market Momentum
-0.02
Positive
40.85
Neutral
9.46
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1525, the sentiment is Negative. The current price of 2.68 is above the 20-day moving average (MA) of 2.42, above the 50-day MA of 2.41, and above the 200-day MA of 2.32, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 40.85 is Neutral, neither overbought nor oversold. The STOCH value of 9.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1525.
Shanghai Gench Education Group Limited Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | HK$957.54M | 2.87 | 10.10% | 6.31% | 11.39% | 31.68% | |
74 Outperform | HK$8.64B | 9.42 | 13.25% | 7.56% | 16.18% | 28.61% | |
73 Outperform | HK$1.99B | 5.42 | 36.98% | 9.02% | 23.93% | 13.07% | |
72 Outperform | HK$1.54B | 1.70 | 8.83% | 22.26% | 0.06% | 12.04% | |
68 Neutral | HK$68.81B | 18.43 | 11.94% | 2.18% | 15.93% | 32.77% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
52 Neutral | HK$636.85M | -2.44 | -17.25% | ― | -4.90% | -217.79% |
* Consumer Defensive Sector Average
HK:1525
Shanghai Gench Education Group Limited
2.22
-0.74
-25.05%
HK:9901
New Oriental Education & Technology Group
43.18
2.54
6.24%
HK:2469
Fenbi Limited
0.28
-2.63
-90.38%
HK:3978
China Beststudy Education Group
2.61
-2.62
-50.18%
HK:6169
China Yuhua Education Corp. Ltd.
0.37
-0.37
-50.00%
HK:0667
China East Education Holdings Limited
3.97
-2.95
-42.66%
Shanghai Gench Education Group Limited Corporate Events
Shanghai Gench Education Shareholders Approve All AGM Resolutions and 2025 Dividend
May 8, 2026
Shareholders of Shanghai Gench Education Group Limited approved all resolutions at the annual general meeting held on 8 May 2026, including the adoption of the 2025 audited financial statements and the re-election of four directors. The board was ...
Shanghai Gench Education Sets 2026 AGM, Proposes Dividend and Share Issuance Mandate
Apr 14, 2026
Shanghai Gench Education Group Limited has called its annual general meeting for 8 May 2026 in Shanghai, where shareholders will review the audited financial statements and the reports of the board and independent auditor for the year ended 31 Dec...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.