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China Xinhua Education Group Limited
(2779)
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Rating:72Outperform
Price Target:
HK$0.37
â–¼(-34.64% Downside)
Action:Reiterated
Date:10/06/26
The score is driven mainly by strong profitability and a conservative balance sheet, reinforced by an extremely low P/E valuation. These positives are partially offset by stalled revenue, some margin/ROE deterioration, and a sharp recent drop in free cash flow, while technical signals remain neutral with the stock still below its long-term (200-day) trend.
Positive Factors
Very high profitability
Gross and net margins near 51% show that the school network converts tuition and related education revenue into substantial operating profitability. This provides internal funding capacity for campuses, teaching resources, and program development while offering resilience if moderate cost pressure persists.
Negative Factors
Revenue has stalled
A revenue decline after only modest prior growth indicates limited near-term expansion in the existing school and program base. Without renewed enrollment, pricing, or program growth, stagnant revenue can restrict operating leverage and make it harder to sustain the company’s historical profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Very high profitability
Gross and net margins near 51% show that the school network converts tuition and related education revenue into substantial operating profitability. This provides internal funding capacity for campuses, teaching resources, and program development while offering resilience if moderate cost pressure persists.
Read all positive factors
China Xinhua Education Group Limited (2779) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$530.83M
Dividend Yield9.58%
Average Volume (3M)193.93K
Price to Earnings (P/E)1.4
Beta (1Y)0.67
Revenue Growth4.64%
EPS Growth-10.32%
CountryHK
Employees3,085
SectorConsumer Defensive
Sector Strength42
IndustryPersonal Products & Services
Share Statistics
EPS (TTM)0.20
Shares Outstanding1,608,583,000
10 Day Avg. Volume37,400
30 Day Avg. Volume193,933
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)0.20
Price to Sales (P/S)1.23
P/FCF Ratio2.53
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)N/A
Revenue Forecast (FY)N/A
China Xinhua Education Group Limited Business Overview & Revenue Model
Company Description
China Xinhua Education Group Limited, together with its subsidiaries, provides higher and secondary vocational education services in the People's Republic of China. The company operates four private schools, which include Anhui Xinhua University t...
How the Company Makes Money
The company primarily makes money by charging students tuition and related fees for education services delivered through its schools and programs. Key revenue streams generally include (i) tuition fees for enrollment in its academic/vocational pro...
China Xinhua Education Group Limited Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 660.29M | 658.03M | 648.08M | 642.66M | 625.48M | 565.39M |
| Gross Profit | 292.64M | 335.92M | 392.26M | 377.96M | 368.70M | 370.13M |
| EBITDA | 328.32M | 395.67M | 390.66M | 393.12M | 324.39M | 440.83M |
| Net Income | 319.73M | 338.05M | 330.22M | 307.10M | 235.51M | 354.48M |
Balance Sheet | ||||||
| Total Assets | 4.95B | 5.13B | 4.85B | 4.48B | 4.19B | 3.96B |
| Cash, Cash Equivalents and Short-Term Investments | 728.46M | 702.17M | 689.88M | 524.64M | 322.07M | 475.89M |
| Total Debt | 516.50M | 540.01M | 601.85M | 546.25M | 496.12M | 456.73M |
| Total Liabilities | 680.75M | 1.08B | 1.13B | 1.01B | 957.52M | 896.87M |
| Stockholders Equity | 4.26B | 4.05B | 3.72B | 3.46B | 3.23B | 3.07B |
Cash Flow | ||||||
| Free Cash Flow | 248.75M | 319.92M | 452.35M | 364.25M | 383.69M | 413.74M |
| Operating Cash Flow | 303.55M | 361.92M | 480.43M | 391.37M | 428.95M | 453.77M |
| Investing Cash Flow | -235.95M | -94.97M | -531.75M | -281.36M | -467.96M | -844.45M |
| Financing Cash Flow | -49.37M | -48.73M | -51.56M | -57.48M | -140.88M | 28.36M |
China Xinhua Education Group Limited Technical Analysis
Negative
0.56
Price Trends
0.34
Negative
0.33
Positive
0.42
Negative
Market Momentum
>-0.01
Positive
47.37
Neutral
59.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2779, the sentiment is Negative. The current price of 0.56 is above the 20-day moving average (MA) of 0.34, above the 50-day MA of 0.34, and above the 200-day MA of 0.42, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.37 is Neutral, neither overbought nor oversold. The STOCH value of 59.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2779.
China Xinhua Education Group Limited Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | HK$1.67B | 1.64 | 14.92% | 15.57% | 19.80% | -10.87% | |
74 Outperform | HK$972.00M | 0.98 | 17.58% | 4.76% | 9.97% | 8.54% | |
73 Outperform | HK$798.64M | 0.64 | 19.41% | 11.95% | 6.22% | 7.79% | |
72 Outperform | HK$530.83M | 1.39 | 7.69% | 9.58% | 4.64% | -10.32% | |
72 Outperform | HK$1.39B | 1.51 | 8.83% | 22.26% | 0.06% | 12.04% | |
70 Outperform | HK$408.00M | 1.15 | 7.04% | 10.80% | 12.52% | -33.22% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
HK:2779
China Xinhua Education Group Limited
0.33
-0.30
-47.62%
HK:1890
China Kepei Education Group Limited
0.84
-0.46
-35.52%
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China Vocational Education Holdings Limited
0.34
-0.37
-52.11%
HK:1969
China Chunlai Education Group Co., Ltd.
0.81
-3.57
-81.51%
HK:2001
China New Higher Education Group Ltd
0.41
-0.83
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China Yuhua Education Corp. Ltd.
0.33
-0.24
-41.96%
China Xinhua Education Group Limited Corporate Events
China Xinhua Education Posts Higher Revenue but Weaker Margins in Interim Results
Aug 31, 2026
China Xinhua Education Group Limited reported unaudited interim results for the six months ended 30 June 2026, showing revenue of RMB364.8 million, a modest 0.6% increase from the prior-year period. Despite the slight revenue growth, gross profit ...
China Xinhua Education Schedules Board Meeting to Review Interim Results and Dividend
Aug 19, 2026
China Xinhua Education Group Limited has scheduled a board meeting for 31 August 2026 to review and approve the group’s interim results for the six months ended 30 June 2026 and to consider their publication. The board will also deliberate o...
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.