China Gingko Education Group Co., Ltd. (1851) AI Stock Analysis

China Gingko Education Group Co., Ltd.

(HKEX:1851)

Select Model

Rating:81Outperform

Price Target:HKD 11.50▲(6.28% Upside)

Action:reiterated

Date:10/27/26

Strong financial performance with robust profitability and deleveraging is the primary driver, supported by bullish technical momentum and moderate valuation.

Positive Factors

High and sustainable profitabilityVery high gross, operating, and net margins indicate efficient cost control and strong pricing power in the college’s education-services model. This profitability provides internal funding for campus operations and investment while offering resilience if revenue growth moderates.

Negative Factors

Cooling recent revenue growthThe sharp moderation in latest revenue growth suggests that enrollment, tuition expansion, or other operating drivers are contributing less incremental momentum than before. If sustained, slower top-line expansion could limit operating leverage and make future profit growth more dependent on efficiency.

China Gingko Education Group Co., Ltd. (1851) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 5.41B
Dividend Yield: ―
Average Volume (3M): 921.75K
Price to Earnings (P/E): 29.6
Beta (1Y): -0.69
Revenue Growth: 14.36%
EPS Growth: 10.68%
Country: Hong Kong
Employees: 1,155
Sector: Consumer Defensive
Sector Strength: 62
Industry: Education & Training Services

China Gingko Education Group Co., Ltd. Business Overview & Revenue Model

Company Description

China Gingko Education Group Company Limited, along with its subsidiaries, delivers higher education services within the People's Republic of China. The company operates through two primary segments: Higher Education and Hotel Operation. Its educatio...

How the Company Makes Money

The company primarily makes money by charging students tuition and fees for higher-education programs delivered through its college operations. Its core revenue stream is tuition income from enrolled students across its academic programs. Additional...

China Gingko Education Group Co., Ltd. Financial Statement Overview

Summary

Strong revenue and profit growth with improved margins, substantial debt reduction, and positive operating cash flows underpin solid financial health.

Income Statement

85Very Positive

Balance Sheet

90Very Positive

Cash Flow

80Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	418.13M	400.68M	372.69M	354.86M	286.19M	226.74M
Gross Profit	212.62M	221.44M	209.96M	213.11M	162.24M	103.92M
EBITDA	215.41M	222.77M	201.69M	209.19M	152.80M	83.94M
Net Income	156.21M	162.57M	153.21M	148.03M	85.01M	38.68M
Balance Sheet
Total Assets	1.45B	1.60B	1.59B	1.46B	1.41B	1.20B
Cash, Cash Equivalents and Short-Term Investments	45.51M	250.80M	273.87M	215.71M	199.85M	156.31M
Total Debt	177.69M	180.57M	311.01M	339.95M	401.29M	389.66M
Total Liabilities	255.91M	494.69M	648.53M	674.70M	772.22M	649.93M
Stockholders Equity	1.19B	1.10B	937.91M	784.70M	636.67M	551.66M
Cash Flow
Free Cash Flow	43.64M	111.31M	97.50M	96.36M	58.63M	37.70M
Operating Cash Flow	162.56M	198.54M	205.69M	237.36M	212.00M	119.35M
Investing Cash Flow	-123.74M	-137.00M	-108.18M	-140.99M	-153.37M	-76.66M
Financing Cash Flow	-71.11M	-127.18M	-41.77M	-81.75M	-19.67M	-37.75M

China Gingko Education Group Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price10.82

Price Trends

50DMA8.04Positive

100DMA6.91Positive

200DMA5.76Positive

Market Momentum

MACD0.81Negative

RSI71.43Negative

STOCH83.95Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1851, the sentiment is Positive. The current price of 10.82 is above the 20-day moving average (MA) of 8.99, above the 50-day MA of 8.04, and above the 200-day MA of 5.76, indicating a bullish trend. The MACD of 0.81 indicates Negative momentum. The RSI at 71.43 is Negative, neither overbought nor oversold. The STOCH value of 83.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1851.

China Gingko Education Group Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

HK:1851 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:1851	81Outperform	HKD 5.41B	29.56	13.61%	―	14.36%	10.68%
HK:6169	72Outperform	HKD 1.39B	1.51	8.83%	―	0.06%	12.04%
HK:0667	71Outperform	HKD 9.18B	9.76	13.25%	7.25%	16.18%	28.61%
HK:3978	69Neutral	HKD 1.77B	4.88	36.98%	12.58%	23.93%	13.07%
HK:9901	66Neutral	HKD 53.63B	14.87	12.52%	2.45%	20.81%	41.58%
HK:0839	65Neutral	HKD 5.11B	5.43	4.48%	―	8.65%	142.58%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

* Consumer Defensive Sector Average

Performance Comparison

HK:1851 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:1851	China Gingko Education Group Co., Ltd.	10.82	8.83	443.72%
HK:9901	New Oriental Education & Technology Group, Inc.	38.34	-6.56	-14.62%
HK:3978	China Beststudy Education Group	2.36	-2.44	-50.88%
HK:6169	China Yuhua Education Corp. Ltd.	0.33	-0.24	-41.96%
HK:0667	China East Education Holdings Limited	4.14	-2.05	-33.15%
HK:0839	China Education Group Holdings Limited	1.82	-1.17	-38.96%

China Gingko Education Group Co., Ltd. Corporate Events

China Gingko Education Revenue Rises but Margins Narrow in First-Half 2026

Aug 28, 2026

China Gingko Education Group reported unaudited revenue of RMB225.6 million for the six months ended 30 June 2026, up from RMB208.4 million a year earlier, reflecting growth in its education operations despite higher costs. Gross profit declined to R...

China Gingko Education Sets August Board Meeting on Interim Results and Dividend

Aug 14, 2026

China Gingko Education Group Company Limited has scheduled a meeting of its board of directors for 28 August 2026 in Hong Kong. At the meeting, directors will review and approve the unaudited consolidated financial results for the six months ended 30...

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 27, 2026

China Gingko Education Group Co., Ltd. AI Stock Analysis