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Scholar Education Group (1769) AI Stock Analysis

HK:1769

Scholar Education Group

(HKEX:1769)

Select Model
Rating:47Neutral
Price Target:HKD 0.68▼(-0.74% Downside)
Action:reiterated
Date:10/08/26

The score is held down primarily by deteriorating profitability (2025 revenue decline and a swing to net losses) and clearly bearish technicals (price below all key moving averages, negative MACD, very low RSI). Partially offsetting this are a moderate leverage profile, still-positive (but weakening) free cash flow, and a high dividend yield.

Positive Factors
Moderate LeverageModerate leverage and growth in equity provide a stronger financial base than the company had in 2020. This can preserve borrowing capacity and help the business fund operations or respond to weaker earnings without relying entirely on new capital.
Negative Factors
Revenue and Profitability DeteriorationThe sharp revenue decline and move from profitability to a sizeable net loss indicate a material deterioration in operating performance. If this reset persists, it could weaken reinvestment capacity, reduce financial flexibility, and make earnings less predictable over the next several quarters.

Scholar Education Group (1769) vs. iShares MSCI Hong Kong ETF (EWH)

-80%-60%-40%-20%0%20%HK:1769-77.81%EWH+7.37%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 428.18M
Dividend Yield
10.45%
Average Volume (3M)
892.01K
Price to Earnings (P/E)
-2.4
Beta (1Y)
0.15
Revenue Growth
-10.50%
EPS Growth
-183.77%
Country
Hong Kong
Employees
3,295
Sector
Consumer Defensive
Sector Strength
62
Industry
Specialty Business Services

Scholar Education Group Business Overview & Revenue Model

Company Description

Scholar Education Group, an investment holding company, provides private education services in the People’s Republic of China. The company offers tutoring education services; and liberal education courses, including art, sports, painting, performance...

Scholar Education Group Financial Statement Overview

Summary

Financials are mixed but pressured by a major 2025 earnings reset: revenue fell ~14% and profitability swung to a net loss (~-10% net margin) with negative operating profit. Offsetting factors include a moderately leveraged balance sheet (~0.48x debt-to-equity) and still-positive operating and free cash flow, though free cash flow declined materially (~45%), signaling weakening cash conversion.

Income Statement

38Negative

Balance Sheet

63Positive

Cash Flow

58Neutral
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue770.29M785.58M852.33M570.61M402.08M831.73M
Gross Profit110.46M154.01M333.39M238.55M138.69M312.68M
EBITDA5.65M64.85M267.51M178.82M100.85M247.58M
Net Income-127.89M-77.72M145.65M85.99M54.41M-26.61M
Balance Sheet
Total Assets1.56B1.65B1.33B1.03B754.92M760.57M
Cash, Cash Equivalents and Short-Term Investments554.06M653.81M502.52M473.63M416.03M391.77M
Total Debt383.67M389.37M326.99M175.09M116.93M182.40M
Total Liabilities769.48M846.62M692.58M579.87M383.52M443.02M
Stockholders Equity790.94M804.22M635.11M454.82M371.40M317.95M
Cash Flow
Free Cash Flow66.11M54.20M114.92M169.14M117.81M40.44M
Operating Cash Flow147.87M172.12M216.28M205.22M125.75M92.79M
Investing Cash Flow-193.38M-229.43M-17.73M-186.15M18.69M47.11M
Financing Cash Flow129.15M142.15M-63.87M-62.09M-82.07M-344.63M

Scholar Education Group Technical Analysis

Technical Analysis SentimentNegative
Last Price0.68

Price Trends

50DMA0.81Negative
100DMA0.91Negative
200DMA1.31Negative

Market Momentum

MACD-0.03Positive
RSI30.31Neutral
STOCH18.22Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1769, the sentiment is Negative. The current price of 0.68 is below the 20-day moving average (MA) of 0.73, below the 50-day MA of 0.81, and below the 200-day MA of 1.31, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 30.31 is Neutral, neither overbought nor oversold. The STOCH value of 18.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1769.

Scholar Education Group Peers Comparison

Overall Rating

UnderperformOutperform
Sector (62)

Financial Indicators

HK:1769 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:6169HK:616972OutperformHKD 1.39B1.508.83%―0.06%12.04%
HK:3978HK:397869NeutralHKD 1.77B4.8736.98%12.58%23.93%13.07%
HK:9901HK:990166NeutralHKD 53.63B14.8712.52%2.45%20.81%41.58%
Sector *62Neutral$20.33B14.63-3.31%3.23%1.93%-12.26%
HK:1565HK:156553NeutralHKD 469.49M10.034.03%6.58%7.99%-43.24%
HK:1769HK:176947NeutralHKD 442.23M-2.36-16.04%10.45%-10.50%-183.77%

* Consumer Defensive Sector Average

Performance Comparison

-60%-40%-20%0%HK:1769HK:9901HK:1565HK:3978HK:6169Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:1769 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:1769Scholar Education Group0.67-2.42-78.32%
HK:9901New Oriental Education & Technology Group, Inc.38.34-6.56-14.62%
HK:1565Virscend Education Company Limited0.15-0.06-28.30%
HK:3978China Beststudy Education Group2.36-2.44-50.88%
HK:6169China Yuhua Education Corp. Ltd.0.33-0.24-41.96%

Scholar Education Group Corporate Events

Scholar Education Group Adds to Trust Holdings Under Share Award Scheme

Oct 7, 2026

Scholar Education Group has reported that the trustee of its share award scheme purchased 252,000 shares on the market on 7 October 2026, representing about 0.037% of its issued share capital, at an average price of roughly HK$0.69. Following this tr...

Scholar Education expands share award scheme holdings with on-market buyback

Oct 6, 2026

Scholar Education Group has reported that the trustee of its share award scheme purchased 200,000 shares on the market on 6 October 2026, representing about 0.03% of its issued share capital, at an average price of approximately HK$0.705 per share. F...

Scholar Education Boosts Share Award Pool With New On‑Market Buyback

Oct 5, 2026

Scholar Education Group has disclosed that the trustee of its share award scheme purchased 260,000 shares on the market on 5 October 2026, representing about 0.039% of its issued share capital. Following this latest transaction, the trustee holds 51,...

Scholar Education Boosts Share Award Pool With On-Market Buy

Oct 2, 2026

Scholar Education Group has disclosed that the trustee of its share award scheme purchased 122,000 shares on the market on 2 October 2026, representing about 0.018% of its issued share capital, at an average price of roughly HK$0.80. Following this t...

Scholar Education Group Expands Share Award Scheme With New On-Market Purchase

Sep 30, 2026

Scholar Education Group has continued to use its share award scheme as a strategic tool to incentivize employees and align management and staff with shareholder interests. The Hong Kong-listed education group operates in the private learning services...

Scholar Education Group Adds to Share Award Pool With Market Purchase

Sep 29, 2026

Scholar Education Group has disclosed that the trustee of its share award scheme purchased 102,000 shares on the market on 29 September 2026, representing about 0.015% of its issued share capital. Following this transaction, the trustee holds 50,651,...

Scholar Education Trustee Adds Shares for Award Scheme as Board Flags Undervaluation

Sep 28, 2026

Scholar Education Group has disclosed that the trustee of its share award scheme purchased 146,000 shares on the market on 28 September 2026, representing about 0.022% of its issued share capital. The shares, bought at an average price of approximate...

Scholar Education Boosts Share Award Scheme with New On-Market Buy

Sep 25, 2026

Scholar Education Group has continued to deploy its share award scheme to incentivise staff, reflecting a strategy to deepen employee alignment with long-term shareholder returns in China’s competitive private education sector. The company view...

Scholar Education Expands Share Pool for Award Scheme with New Buyback

Sep 24, 2026

Scholar Education Group has reported that its trustee purchased 203,000 shares on the open market under its share award scheme, representing about 0.03% of its issued share capital at an average price of approximately HK$0.81. Following this transact...

Scholar Education Adds to Share Award Scheme Amid Confidence in Valuation

Sep 23, 2026

Scholar Education Group has reported that the trustee of its share award scheme bought 142,000 shares on the market on 23 September 2026, representing about 0.021% of its issued share capital, at an average price of around HK$0.84. Following this lat...

Scholar Education Deepens Staff Incentive Pool With New Share Purchases

Sep 22, 2026

Scholar Education Group has continued to use its share award scheme as a tool to align staff incentives with shareholder interests, with a trustee purchasing shares on the market to hold for selected participants. The latest move underscores the comp...

Scholar Education Trustee Adds Shares for Award Scheme Amid Undervaluation Claim

Sep 21, 2026

Scholar Education Group has announced that the trustee of its share award scheme has purchased 135,000 shares on the market on 21 September 2026, representing about 0.02% of the company’s issued share capital. The shares, acquired at an average...

Scholar Education Group Expands Share Award Pool with On-Market Share Purchase

Sep 18, 2026

Scholar Education Group has reported that its trustee purchased 87,000 shares on the market on 18 September 2026 under its existing share award scheme, representing about 0.013% of its issued share capital at an average price of roughly HK$0.83. Foll...

Scholar Education Group Interim Profit Slumps Despite Modest Revenue Decline

Aug 24, 2026

Scholar Education Group reported unaudited interim results for the six months ended 30 June 2026 showing a modest 3.5% decline in revenue to RMB424.1 million but a sharper drop in profitability. Gross profit fell 28.9% to RMB107.0 million, while prof...

Scholar Education Group Sets Board Meeting to Approve Interim Results and Consider Dividend

Aug 12, 2026

Scholar Education Group’s board has scheduled a meeting for August 24, 2026, to review and approve the interim financial results for the six months ended June 30, 2026. The board will also consider the declaration of an interim dividend, signal...

Scholar Education Expands Share Award Pool with Fresh Buyback

Jul 24, 2026

Scholar Education Group has continued to execute its share award scheme, with a trustee purchasing 1,684,000 shares on the market on 24 July 2026, representing about 0.25% of issued share capital at an average price of HK$1.02. Following this transac...

Scholar Education Expands Share Award Pool with New On-Market Buyback

Jul 23, 2026

Scholar Education Group has continued to execute its share award scheme, with its trustee purchasing 1.5 million shares on the market on 23 July 2026 to hold in trust for selected participants. The purchase, representing about 0.223% of issued share...

Scholar Education Steps Up Share Purchases for Award Scheme

Jul 22, 2026

Scholar Education Group has continued to execute its share award scheme, using a trustee to purchase shares on the market for future distribution to selected participants. On 22 July 2026, the trustee acquired 2,364,000 shares, equivalent to about 0....

Scholar Education Boosts Share Award Scheme With On-Market Share Purchase

Jul 21, 2026

Scholar Education Group has disclosed that the trustee of its share award scheme purchased 1,236,000 shares on the market on 21 July 2026, equal to about 0.183% of its issued share capital, at an average price of approximately HK$1.01. Following this...

Scholar Education Group Boosts Share Award Scheme With Market Buy

Jul 20, 2026

Scholar Education Group announced that the trustee of its share award scheme has purchased 1,000,000 shares on the market on 20 July 2026, representing about 0.148% of its issued share capital, at an average price of roughly HK$1.00 per share. Follow...

Scholar Education Boosts Share Award Scheme With Fresh Buyback

Jul 17, 2026

Scholar Education Group has expanded its share award scheme with a new on-market purchase of 1,000,000 shares on July 17, 2026, representing about 0.148% of its issued share capital at an average price of HK$0.98. Following this transaction, the sche...

Scholar Education Group Trustee Buys Shares for Award Scheme at “Undervalued” Prices

Jul 16, 2026

Scholar Education Group has disclosed that the trustee of its share award scheme purchased 700,000 shares on the open market on 16 July 2026, representing about 0.104% of its issued share capital. The shares, acquired at an average price of roughly H...

Scholar Education Group Expands Trust Holdings Under Share Award Scheme

Jul 15, 2026

Scholar Education Group has disclosed that the trustee of its share award scheme bought 953,000 shares on the market on 15 July 2026, representing about 0.141% of its issued share capital, at an average price of roughly HK$1.00 per share. Following t...

Scholar Education Issues Profit Warning Amid Slow Ramp‑Up of New Learning Centres

Jul 14, 2026

Scholar Education Group has warned that net profit attributable to shareholders for the six months ended 30 June 2026 will be at least RMB12 million, sharply lower than RMB62.9 million a year earlier, with adjusted net profit dropping to no less than...

Scholar Education Steps Up Share Purchases for Award Scheme Amid Confidence in Outlook

Jul 10, 2026

Scholar Education Group has continued to implement its share award scheme by directing a trustee to purchase additional shares on the open market for future distribution to selected participants. On 10 July 2026, the trustee bought 1,047,000 shares,...

Scholar Education Expands Share Award Pool With New On-Market Buy-Back

Jul 9, 2026

Scholar Education Group has continued to execute its share award scheme, with a trustee purchasing 1,000,000 shares on the market on 9 July 2026 at an average price of about HK$1.03 per share, representing roughly 0.148% of issued share capital. Foll...

Scholar Education Group Adds to Trustee Holdings Under Share Award Scheme

Jul 8, 2026

Scholar Education Group has announced that the trustee of its share award scheme purchased 859,000 shares on the market on 8 July 2026, representing about 0.127% of its issued share capital, at an average price of roughly HK$1.02 per share. Following...

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.

Date of analysis: Oct 08, 2026