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Chen Lin Education Group (1593) Fair Value & Analysis

Consumer Defensive · HK · Market cap HK$1.1B

CL Chen Lin Education Group 1593 · HK
PriceHK$1.04
Fair ValueHK$0.3400
Upside-67.3%
Quality28/100
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Expensive Growth
Loss-making · -73.2% net margin
High debt · negative free cash flow
Trails peers (2/11)
Narrow moat 10/100
Evidence: Low Range HK$0.2600 – HK$0.3500 Share as image

Fair value as of: Aug 5, 2026

From 2 valuation models · updated 5 days ago

Below-average quality, and screening another 67% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (HK$0.3500). The favourable scenario is already priced in.
  • Weak quality (28/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
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Price vs Fair Value (5 years)

HK$2.91 HK$1.02 Fair Value HK$0.3400 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 5, 2026.

How to read this chart

60‑month range HK$1.02 – HK$2.91 · fair‑value band HK$0.2600 – HK$0.3500 · the HK$1.04 price screens above the HK$0.3400 fair value. Dashed = 300-day average. As of Aug 5, 2026.

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Analysis

Chen Lin Education Group (1593) currently trades at HK$1.04, while our model-based Fair Value estimate is HK$0.3400, implying the stock looks roughly 67.3% overvalued today. The Quality Score stands at 28/100 (below-average quality), in the Consumer Defensive sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: low).

Over the trailing twelve months, Chen Lin Education Group generated revenue of HK$601M at a net margin of -73.2%. Revenue grew 0.2% year over year. It earns a return on equity of -69.2%. Net debt stands at HK$2.4B. Fundamentals as of Aug 5, 2026

Our scenario range runs from HK$0.2600 (bear case) to HK$0.3500 (bull case); at HK$1.04, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 44% below its 52-week high, currently below its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at 17% fair-value upside, at -67%, 1593 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
EV/EBITDA HK$0.8000 HK$1.26 HK$1.73 54
NCAV (Graham) HK$0.2200 HK$0.3000 HK$0.4400 50
All 2 models by family
Multiples
EV/EBITDA HK$0.8000 HK$1.26 HK$1.73 54
Asset-Based
NCAV (Graham) HK$0.2200 HK$0.3000 HK$0.4400 50

Widest divergence: Multiples (HK$1.26) versus Asset-Based (HK$0.3000). Highest evidence: EV/EBITDA (54).

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Key figures & financial health

Revenue (TTM) HK$601M
Revenue growth (YoY) +0.2%
Net margin -73.2%
Return on equity -69.2%
Free cash flow −HK$40.6M FY2025
Operating margin 4.6%
More key figures
EPS growth (YoY) +182%
Net debt HK$2.4B FY2025

Figures from reported company fundamentals · as of Aug 5, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 28/100

Of which business quality 28 · Market factors (momentum, volatility) 34

Profitability 2
Margins and returns on capital today
Quality Growth 17
Are margins and returns improving?
Cashflow 27
Earnings quality: real cash, not paper profit
Fin. Strength 3
Balance sheet, leverage, solvency risk
Investment 56
Disciplined investing over empire-building
Low Volatility 81
Calm price path (market factor)
Momentum 20
Price trend over the last 3–12 months (market factor)
52W Momentum 7
Distance to the 52-week high (market factor)
Net Issuance 95
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Chen Lin Education Group Holdings Limited provides private tertiary education services in the People's Republic of China. The company operates Jiangxi Institute of Applied Science and Technology, a private university that offers undergraduate and junior college programs, as well as diverse education related services.

Full company description

Chen Lin Education Group Holdings Limited provides private tertiary education services in the People's Republic of China. The company operates Jiangxi Institute of Applied Science and Technology, a private university that offers undergraduate and junior college programs, as well as diverse education related services. It also operates Jiangxi Wenli Jishi College, a full-time vocational college; Guizhou Vocational College of Industry and Trade, a higher vocational college; and Chen Lin High School, a private high school. In addition, the company is involved in investment related activities. The company was founded in 2002 and is headquartered in Nanchang, the People's Republic of China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Chen Lin Education Group reported revenue of HK$594M in FY2025 versus HK$327M in FY2021, a compound +16.1%/yr. Reported net income was −HK$408M in FY2025.

Growth Quality 32/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
HK$594M
Latest YoY
−0.9%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.9%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.6%
Avg. growth/yr (9Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.2%
Revenue +16.1%/yr
FY21 HK$327M
FY22 HK$515M
FY23 HK$563M
FY24 HK$599M
FY25 HK$594M
Net income
FY21 −HK$28.1M
FY22 −HK$38.0M
FY23 HK$33.7M
FY24 HK$15.4M
FY25 −HK$408M

1593 screens 67% overvalued. Compare with New Oriental Education & Technology Group →

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Cite: Fair Value Calculator (2026). "Chen Lin Education Group Fair Value". https://www.fairvalue-calculator.com/stock/1593

Peer Group

Education & Training Services · 148 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 28 · Bottom 25%
Fair Value upside −67% · Bottom 25%
Return on assets -1% · Below median
Net margin (TTM) -73% · Bottom 25%
Operating margin (TTM) 5% · Below median
Revenue growth 0% · Below median
Debt / equity 1.72× · Higher than 75% of peers

Valuation Multiples vs Education & Training Services median · lower = cheaper

P/B 0.31× · Cheaper than 75% of peers
P/S (TTM) 0.23× · Cheaper than 75% of peers
EV/EBITDA 7.8× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 37
FUTURE 1 · sector 24
PAST 0 · sector 18
HEALTH 14 · sector 95
DIVIDEND 0 · sector 66

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Education & Training Services stocks, each showing price versus our Fair Value estimate (as of Aug 5, 2026).

Stock Price Fair Value vs Fair Value
New Oriental Education & Technology Group EDUN 966.48 MXN 897.37 MXN -7%
TAL Education Group TAL $10.24 $15.60 +52%
Laureate Education, Inc LAUR $36.45 $41.45 +14%
Physicswallah Limited PWL ₹131.59 ₹14.81 -89%
Grand Canyon Education, Inc LOPE $149.00 $152.01 +2%
Covista Inc CVSA $116.22 $135.45 +17%
Stride, Inc LRN $83.39 $139.45 +67%
Universal Technical Institute, Inc UTI $40.33 $21.35 -47%
Perdoceo Education Corporation PRDO $31.66 $41.45 +31%
Strategic Education, Inc STRA $84.18 $105.48 +25%

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Frequently asked questions

Is Chen Lin Education Group (1593) overvalued or undervalued?
As of Aug 5, 2026, our model estimates a fair value of HK$0.3400 versus a price of HK$1.04, about −67% (overvalued).
What is the fair value of 1593?
Our model-based fair value for Chen Lin Education Group is HK$0.3400 (as of Aug 5, 2026), built from audited fundamentals. The current price is HK$1.04.
What is the quality score of 1593?
Chen Lin Education Group has a Quality Score of 28/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Chen Lin Education Group (1593)?
Chen Lin Education Group reported trailing-twelve-month revenue of about HK$601M (latest available figure, as of Aug 5, 2026).
What is the net profit margin of 1593?
The net profit margin of Chen Lin Education Group is about -73.2%, meaning it is currently running at a net loss. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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