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China Beststudy Education Group
(3978)
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Rating:67Neutral
Price Target:
HK$2.50
▼(-35.40% 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
Strong net and operating margins indicate that the company is converting education-service revenue into meaningful earnings. If maintained, this profitability can support reinvestment in learning operations, provide resilience against cost pressure, and strengthen the business over the next several quarters.
Negative Factors
Revenue Volatility
The sharp earlier revenue contraction and weak growth across 2022–2023 reveal that demand and operating performance have not been consistently stable. This history makes recent recovery less proven and could complicate planning, resource allocation, and sustained earnings growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Profitability
Strong net and operating margins indicate that the company is converting education-service revenue into meaningful earnings. If maintained, this profitability can support reinvestment in learning operations, provide resilience against cost pressure, and strengthen the business over the next several quarters.
Read all positive factors
China Beststudy Education Group (3978) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$1.77B
Dividend Yield12.58%
Average Volume (3M)719.56K
Price to Earnings (P/E)4.9
Beta (1Y)0.50
Revenue Growth23.93%
EPS Growth13.07%
CountryHK
Employees5,120
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.41
Shares Outstanding847,221,000
10 Day Avg. Volume432,157
30 Day Avg. Volume719,560
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)3.34
Price to Sales (P/S)1.46
P/FCF Ratio5.66
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$5.34Price Target Upside37.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.42
Revenue Forecast (FY)HK$2.20B
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
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.02B | 1.90B | 1.10B | 489.31M | 491.13M | 1.90B |
| Gross Profit | 909.43M | 863.86M | 510.12M | 229.86M | 173.06M | 729.35M |
| EBITDA | 575.94M | 526.44M | 337.96M | 203.56M | 109.22M | 482.88M |
| Net Income | 317.87M | 301.47M | 192.45M | 91.25M | 56.29M | -325.03M |
Balance Sheet | ||||||
| Total Assets | 2.30B | 2.29B | 1.84B | 1.05B | 869.68M | 1.32B |
| Cash, Cash Equivalents and Short-Term Investments | 1.17B | 1.30B | 740.27M | 395.27M | 338.21M | 686.41M |
| Total Debt | 331.60M | 336.22M | 285.30M | 190.42M | 199.53M | 570.60M |
| Total Liabilities | 1.41B | 1.44B | 1.18B | 549.94M | 463.79M | 968.05M |
| Stockholders Equity | 884.43M | 834.52M | 653.71M | 498.01M | 407.86M | 350.85M |
Cash Flow | ||||||
| Free Cash Flow | 541.52M | 491.85M | 772.11M | 273.60M | -76.04M | -182.90M |
| Operating Cash Flow | 637.10M | 593.22M | 824.44M | 291.17M | -31.95M | -53.43M |
| Investing Cash Flow | -413.60M | -44.10M | -485.01M | -144.52M | 450.46M | -67.85M |
| Financing Cash Flow | -330.38M | -232.94M | -109.33M | -59.77M | -434.58M | -361.33M |
China Beststudy Education Group Technical Analysis
Negative
3.87
Price Trends
2.52
Negative
2.73
Negative
2.90
Negative
Market Momentum
-0.03
Negative
42.40
Neutral
39.06
Neutral
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 2.40, above the 50-day MA of 2.52, and above the 200-day MA of 2.90, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 42.40 is Neutral, neither overbought nor oversold. The STOCH value of 39.06 is Neutral, 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | HK$5.41B | 29.62 | 13.61% | ― | 14.36% | 10.68% | |
72 Outperform | HK$1.39B | 1.51 | 8.83% | 22.26% | 0.06% | 12.04% | |
71 Outperform | HK$9.18B | 9.76 | 13.25% | 7.25% | 16.18% | 28.61% | |
67 Neutral | HK$1.77B | 4.88 | 36.98% | 12.58% | 23.93% | 13.07% | |
66 Neutral | HK$53.63B | 14.87 | 12.52% | 2.45% | 20.81% | 41.58% | |
65 Neutral | HK$5.11B | 5.43 | 4.48% | 16.74% | 8.65% | 142.58% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
HK:3978
China Beststudy Education Group
2.36
-2.45
-50.88%
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38.34
-6.56
-14.62%
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China Gingko Education Group Co., Ltd.
10.82
8.83
443.72%
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China Yuhua Education Corp. Ltd.
0.33
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-41.96%
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China East Education Holdings Limited
4.14
-2.05
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HK:0839
China Education Group Holdings Limited
1.83
-1.17
-38.96%
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...
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.