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China Beststudy Education Group (HK:3978)
:3978
Hong Kong Market
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China Beststudy Education Group (3978) AI Stock Analysis

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HK:3978

China Beststudy Education Group

(3978)

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Neutral 67 (OpenAI - Gpt-5.6Sol)
Rating:67Neutral
Price Target:
HK$3.00
â–¼(-22.48% Downside)
Action:Reiterated
Date:08/29/26
The score is driven primarily by improved recent financial performance (strong margins, moderate leverage) and supportive valuation (low P/E and high dividend yield). This is meaningfully offset by weak technicals, with the stock trading below major moving averages and bearish momentum indicators.
Positive Factors
Strong Profitability
Healthy net and operating margins indicate effective delivery economics and pricing capacity. If maintained, this profitability provides resources to fund learning operations, absorb cost pressures, and support resilient earnings over the next several quarters.
Negative Factors
Historically Volatile Revenue
The sharp earlier revenue contraction and subsequent uneven growth indicate sensitivity to changing education demand and operating conditions. This history limits confidence that recent recovery will develop into a consistently durable growth trajectory.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Profitability
Healthy net and operating margins indicate effective delivery economics and pricing capacity. If maintained, this profitability provides resources to fund learning operations, absorb cost pressures, and support resilient earnings over the next several quarters.
Read all positive factors

China Beststudy Education Group (3978) vs. iShares MSCI Hong Kong ETF (EWH)

China Beststudy Education Group Business Overview & Revenue Model

Company Description
Established in Guangzhou in 1997, China Beststudy Education Group delivers a comprehensive range of after-school educational programs primarily for K-12 students across China. Its core offerings include intensive full-time preparation courses desi...
How the Company Makes Money
The company primarily makes money by charging fees to students (or their parents) for education and training services. Key revenue streams typically include: (1) tuition/class fees for after-school academic tutoring courses (sold as individual cla...

China Beststudy Education Group Financial Statement Overview

Summary
Recent fundamentals are improved with strong profitability (2025 net margin ~15.8%, EBIT margin ~20.3%) and re-accelerating revenue growth (~9.0% in 2025). Balance sheet leverage is now moderate (debt-to-equity ~0.40 in 2025), but the multi-year history shows volatility (2021 loss, sharp 2021–2022 revenue step-down). Cash flow is positive lately yet inconsistent historically, with a 2025 free-cash-flow decline and prior negative periods.
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
64
Positive
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.90B1.10B489.31M491.13M1.90B
Gross Profit863.86M510.12M229.86M173.06M729.35M
EBITDA417.96M267.68M203.56M26.14M261.67M
Net Income301.47M192.45M91.25M56.29M-325.03M
Balance Sheet
Total Assets2.29B1.84B1.05B869.68M1.32B
Cash, Cash Equivalents and Short-Term Investments1.30B740.27M395.27M338.21M686.41M
Total Debt336.22M285.30M190.42M199.53M570.60M
Total Liabilities1.44B1.18B549.94M463.79M968.05M
Stockholders Equity834.52M653.71M498.01M407.86M350.85M
Cash Flow
Free Cash Flow491.85M772.11M273.60M-76.04M-182.90M
Operating Cash Flow593.22M824.44M291.17M-31.95M-53.43M
Investing Cash Flow-44.10M-485.01M-144.52M450.46M-67.85M
Financing Cash Flow-232.94M-109.33M-59.77M-434.58M-361.33M

China Beststudy Education Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.87
Price Trends
50DMA
3.09
Negative
100DMA
3.15
Negative
200DMA
3.39
Negative
Market Momentum
MACD
-0.14
Positive
RSI
25.72
Positive
STOCH
1.83
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3978, the sentiment is Negative. The current price of 3.87 is above the 20-day moving average (MA) of 2.98, above the 50-day MA of 3.09, and above the 200-day MA of 3.39, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 25.72 is Positive, neither overbought nor oversold. The STOCH value of 1.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3978.

China Beststudy Education Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
HK$3.89B21.2213.61%―14.36%10.68%
77
Outperform
HK$72.12B18.8711.94%2.13%15.93%32.77%
72
Outperform
HK$1.54B1.688.83%22.26%0.06%12.04%
69
Neutral
HK$9.18B9.4713.25%7.53%16.18%28.61%
68
Neutral
HK$5.26B5.544.47%16.74%8.65%142.58%
67
Neutral
HK$1.98B5.4736.98%8.97%23.93%13.07%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3978
China Beststudy Education Group
2.62
-2.55
-49.35%
HK:9901
New Oriental Education & Technology Group
44.20
2.60
6.25%
HK:1851
China Gingko Education Group Co., Ltd.
7.69
6.41
500.78%
HK:6169
China Yuhua Education Corp. Ltd.
0.36
-0.15
-29.41%
HK:0667
China East Education Holdings Limited
3.99
-2.85
-41.73%
HK:0839
China Education Group Holdings Limited
1.85
-1.01
-35.31%

China Beststudy Education Group Corporate Events

China Beststudy Education Delivers Double-Digit Profit Growth in First Half of 2026
Aug 20, 2026
China Beststudy Education Group reported solid interim results for the six months ended 30 June 2026, with revenue rising 14.3% year on year to RMB1.05 billion and gross profit up 14.6% to RMB473.3 million. Net profit increased 11.1% to RMB168.4 m...
China Beststudy Education Declares Interim Dividend for First Half of 2026
Aug 20, 2026
China Beststudy Education Group has declared an interim ordinary cash dividend of HKD 0.18 per share for the six months ended 30 June 2026, payable in Hong Kong dollars. The move underscores the company’s capacity and willingness to return c...
China Beststudy Sets Board Meeting to Approve Interim Results and Consider Dividend
Aug 10, 2026
China Beststudy Education Group has scheduled a board meeting for 20 August 2026 to review and approve its interim results for the six months ended 30 June 2026. The board will also consider the declaration of an interim dividend, signaling potent...
China Beststudy forecasts double-digit revenue growth in first-half 2026
Jul 24, 2026
China Beststudy Education Group has issued a positive profit alert, projecting revenue of between RMB1.0 billion and RMB1.1 billion and net profit of RMB160 million to RMB180 million for the six months ended 30 June 2026, representing year-on-year...
China Beststudy Plans 30 Million-Share Buyback and Cancellation
Jul 3, 2026
China Beststudy Education Group plans to repurchase and cancel 30,000,000 shares in the second half of the year, representing about 3.54% of its issued share capital, by buying them back directly from the trustee of its restricted share unit schem...
China Beststudy grants RSUs to boost AI talent without shareholder dilution
Jul 3, 2026
China Beststudy Education Group has granted 1,965,000 restricted share units to four employees under its RSU scheme, aimed at attracting and retaining top AI talent and aligning staff incentives with the company’s long-term push into AI-driv...
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: Aug 29, 2026