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Hope Education Group Co Ltd (1765) Fair Value & Analysis

Consumer Defensive · HK · Market cap HK$1.1B

HE Hope Education Group Co Ltd 1765 · HK
PriceHK$0.1540
Fair ValueHK$0.0930
Upside-39.6%
Quality51/100
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Expensive Growth
Solidly profitable · 17.9% net margin
Low debt · generates free cash flow
Mixed vs. peers (5/11)
Moderate moat 58/100
Evidence: High Range HK$0.0708 – HK$0.1169 Share as image

Fair value as of: Aug 13, 2026

From 24 valuation models · updated 3 days ago

Fair value updated Aug 13, 2026, revised from HK$0.0929 to HK$0.0930 (+0.1%) since Aug 5, 2026. Share price +6.2% over the past month.

A solid business, but screening 40% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (HK$0.1169). The favourable scenario is already priced in.
  • Solid but not exceptional quality (51/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

HK$2.96 HK$0.1210 Fair Value HK$0.0930 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$0.1210 – HK$2.96 · fair‑value band HK$0.0708 – HK$0.1169 · the HK$0.1540 price screens above the HK$0.0930 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Hope Education Group Co Ltd (1765) currently trades at HK$0.1540, while our model-based Fair Value estimate is HK$0.0930, implying the stock looks roughly 39.6% overvalued today. The Quality Score stands at 51/100 (solid 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: high).

Over the trailing twelve months, Hope Education Group Co Ltd generated revenue of HK$3.9B at a net margin of 17.9%. Revenue declined 3.3% year over year. It earns a return on equity of 7.1%. Net debt stands at HK$1.5B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$0.0708 (bear case) to HK$0.1169 (bull case); at HK$0.1540, 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 41% below its 52-week high and 43% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at 12% fair-value upside, at -40%, 1765 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
Growth DCF HK$0.7400 HK$1.15 HK$1.85 80
Residual Income HK$0.7700 HK$0.7300 HK$0.6000 76
Rev-Margin DCF HK$0.6500 HK$1.05 HK$1.64 74
All 24 models by family
DCF Models
FCF DCF HK$0.7700 HK$1.09 HK$1.94 38
Owner Earnings HK$0.3900 HK$0.6000 HK$0.9900 31
5Y Revenue Exit HK$0.6500 HK$1.00 HK$1.67 39
5Y EBITDA Exit HK$1.27 HK$2.36 HK$4.34 41
5Y P/E Exit HK$0.8500 HK$1.55 HK$2.45 38
10Y Revenue Exit HK$0.6700 HK$1.09 HK$1.57 36
10Y EBITDA Exit HK$1.09 HK$2.16 HK$4.17 37
10Y P/E Exit HK$0.8200 HK$1.44 HK$2.51 35
Earnings-Based
Graham-Dodd HK$0.3000 HK$2.10 HK$2.95 54
Lynch FV HK$0.6200 HK$0.8900 HK$1.15 50
PEG = 1.0 HK$0.6200 HK$0.8900 HK$1.15 46
EPV HK$0.7700 HK$0.8500 HK$0.9100 59
Multiples
P/E Multiple HK$0.7300 HK$0.9800 HK$1.22 63
P/S Multiple HK$0.4100 HK$0.5500 HK$0.6800 58
P/B Multiple HK$0.5700 HK$0.7500 HK$0.9400 55
EV/EBIT HK$1.32 HK$1.70 HK$2.08 53
EV/EBITDA HK$1.58 HK$2.04 HK$2.50 54
EV/Revenue HK$0.5800 HK$0.7400 HK$0.9000 43
Asset-Based
NCAV (Graham) HK$0.5500 HK$0.7400 HK$1.10 50
Growth DCF
Growth DCF HK$0.7400 HK$1.15 HK$1.85 80
Rev-Margin DCF HK$0.6500 HK$1.05 HK$1.64 74
Economic Profit
Residual Income HK$0.7700 HK$0.7300 HK$0.6000 76
ROIC Compounder HK$0.7700 HK$0.8500 HK$0.9100 72
Growth Earnings
Growth-Adj P/E HK$0.8700 HK$1.24 HK$1.61 68

Widest divergence: Growth Earnings (HK$1.24) versus Economic Profit (HK$0.7300). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$3.9B
Revenue growth (YoY) -3.3%
Net margin 17.9%
Return on equity 7.1%
Free cash flow HK$393M FY2025
P/E ratio 12.8 as of Jul 2, 2026
More key figures
Operating margin 26.9%
EPS (TTM) HK$-0.0600
EPS growth (YoY) +92.6%
Net debt HK$1.5B FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 51/100

Of which business quality 48 · Market factors (momentum, volatility) 25

Profitability 23
Margins and returns on capital today
Quality Growth 37
Are margins and returns improving?
Cashflow 63
Earnings quality: real cash, not paper profit
Fin. Strength 41
Balance sheet, leverage, solvency risk
Investment 57
Disciplined investing over empire-building
Low Volatility 33
Calm price path (market factor)
Momentum 23
Price trend over the last 3–12 months (market factor)
52W Momentum 20
Distance to the 52-week high (market factor)
Net Issuance 80
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

XJ International Holdings Co., Ltd., an investment holding company, engages in the provision of higher education and secondary vocational education services in China, Malaysia, Thailand, and Hungary.

Full company description

XJ International Holdings Co., Ltd., an investment holding company, engages in the provision of higher education and secondary vocational education services in China, Malaysia, Thailand, and Hungary. The company provides technician education and training, self-study examination, adult education, and training services to students, as well as sells textbooks and dormitory bedding; and technical management and consultancy services. It owns and operates schools, including colleges and universities, junior colleges, and technician colleges. The company was formerly known as Hope Education Group Co., Ltd. and changed its name to XJ International Holdings Co., Ltd. in January 2024. XJ International Holdings Co., Ltd. was founded in 2007 and is based in Chengdu, the People's Republic of China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hope Education Group Co Ltd reported revenue of HK$4.0B in FY2025 versus HK$2.3B in FY2021, a compound +14.3%/yr. Reported net income was HK$385M in FY2025, compounding −10.7%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
HK$4.0B
Latest YoY
+6.1%
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.
+9.2%
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.
+24.8%
Avg. growth/yr (10Y) 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.
+23.3%
Revenue +14.3%/yr
FY21 HK$2.3B
FY22 HK$3.0B
FY23 HK$3.6B
FY24 HK$3.7B
FY25 HK$4.0B
Net income −10.7%/yr
FY21 HK$606M
FY22 HK$445M
FY23 HK$210M
FY24 HK$610M
FY25 HK$385M
Character of growth · EPS growth decomposed (2015-2025) +13.0 % p.a.
Revenue per share +21.6 pp

of which total revenue +25.4 pp · buybacks/dilution −3.7 pp

EBIT margin −4.5 pp
Tax rate −2.5 pp
Residual (interest, one-offs) −1.6 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

1765 screens 40% overvalued. Compare with New Oriental Education & Technology Group →

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Cite: Fair Value Calculator (2026). "Hope Education Group Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/1765

Peer Group

Education & Training Services · 149 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 51 · Below median
Fair Value upside −42% · Bottom 25%
Return on equity (TTM) 7% · Above median
Return on assets 3% · Below median
Net margin (TTM) 18% · Top 25%
Operating margin (TTM) 27% · Top 25%
Revenue growth -3% · Below median
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.15× · Higher than median

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

P/E (TTM) 12.8× · Cheaper than median
P/FCF 0.4× · Cheaper than 75% of peers

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 0 · sector 22
PAST 28 · sector 19
HEALTH 93 · sector 95
DIVIDEND 1 · sector 74

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 13, 2026).

Stock Price Fair Value vs Fair Value
New Oriental Education & Technology Group EDUN 966.48 MXN 875.84 MXN -9%
TAL Education Group TAL $11.87 $15.60 +31%
Laureate Education, Inc LAUR $36.99 $41.45 +12%
Physicswallah Limited PWL ₹123.90 ₹14.81 -88%
Grand Canyon Education, Inc LOPE $142.06 $152.01 +7%
Covista Inc CVSA $128.22 $135.45 +6%
Stride, Inc LRN $78.59 $139.45 +77%
Universal Technical Institute, Inc UTI $25.64 $20.98 -18%
Perdoceo Education Corporation PRDO $31.24 $40.65 +30%
Strategic Education, Inc STRA $79.98 $105.48 +32%

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Frequently asked questions

Is Hope Education Group Co Ltd (1765) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$0.0930 versus a price of HK$0.1540, about −40% (overvalued).
What is the fair value of 1765?
Our model-based fair value for Hope Education Group Co Ltd is HK$0.0930 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$0.1540.
What is the quality score of 1765?
Hope Education Group Co Ltd has a Quality Score of 51/100. 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 Hope Education Group Co Ltd (1765)?
Hope Education Group Co Ltd reported trailing-twelve-month revenue of about HK$3.9B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 1765?
The net profit margin of Hope Education Group Co Ltd is about 17.9%, meaning it keeps roughly 17.9% of revenue as net income. 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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