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China Xinhua Education Group Ltd (2779) Fair Value & Analysis

Consumer Defensive · HK · Market cap HK$499M

CX China Xinhua Education Group Ltd 2779 · HK
PriceHK$0.3100
Fair ValueHK$0.2771
Upside-10.6%
Quality63/100
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Healthy Growth
Highly profitable · 51.4% net margin
Low debt · generates free cash flow
Ranks above peers (11/14)
Wide moat 65/100
Evidence: High Range HK$0.1858 – HK$0.3725 Share as image

Fair value as of: Aug 15, 2026

From 26 valuation models · updated 2 days ago

Fair value updated Aug 15, 2026, revised from HK$0.2779 to HK$0.2771 (−0.3%) since Aug 6, 2026.

A solid business, but screening 11% overvalued on our models.

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What matters now

  • A fairly wide model range (HK$0.1858 to HK$0.3725) leaves room in how you read the outcome.
  • Our model range runs from HK$0.1858 (bear) to HK$0.3725 (bull), base HK$0.2771. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 63/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

HK$1.78 HK$0.2950 Fair Value HK$0.2771 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 15, 2026.

How to read this chart

60‑month range HK$0.2950 – HK$1.78 · fair‑value band HK$0.1858 – HK$0.3725 · the HK$0.3100 price screens above the HK$0.2771 fair value. Dashed = 300-day average. As of Aug 15, 2026.

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Analysis

China Xinhua Education Group Ltd (2779) currently trades at HK$0.3100, while our model-based Fair Value estimate is HK$0.2771, implying the stock looks roughly 10.6% overvalued today. The Quality Score stands at 63/100 (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, China Xinhua Education Group Ltd generated revenue of HK$658M at a net margin of 51.4%. Revenue grew 1.1% year over year. It earns a return on equity of 8.7%. The balance sheet holds a net cash position of HK$11.9M. Fundamentals as of Aug 15, 2026

Our scenario range runs from HK$0.1858 (bear case) to HK$0.3725 (bull case); at HK$0.3100, the current price sits within 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 61% below its 52-week high and 7% 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 -11%, 2779 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$1.98 HK$2.90 HK$4.13 80
Residual Income HK$1.99 HK$2.09 HK$2.23 76
Rev-Margin DCF HK$1.00 HK$1.32 HK$1.71 74
All 26 models by family
DCF Models
FCF DCF HK$1.98 HK$2.97 HK$4.34 38
Owner Earnings HK$2.19 HK$3.28 HK$4.80 31
5Y Revenue Exit HK$1.00 HK$1.29 HK$1.62 39
5Y EBITDA Exit HK$2.07 HK$3.35 HK$4.85 41
5Y P/E Exit HK$2.69 HK$4.53 HK$6.52 38
10Y Revenue Exit HK$1.37 HK$1.73 HK$2.16 36
10Y EBITDA Exit HK$2.01 HK$3.05 HK$4.48 37
10Y P/E Exit HK$2.37 HK$3.82 HK$5.67 35
Earnings-Based
Graham-Dodd HK$1.43 HK$5.10 HK$6.88 54
Lynch FV HK$1.20 HK$1.72 HK$2.23 50
PEG = 1.0 HK$1.20 HK$1.72 HK$2.23 46
EPV HK$1.65 HK$1.87 HK$2.05 59
Dividend Discount
Gordon GGM HK$0.4500 HK$0.8100 HK$1.11 70
DDM Multi-Stage HK$0.4500 HK$0.7400 HK$0.8600 61
Multiples
P/E Multiple HK$3.47 HK$4.62 HK$5.78 63
P/S Multiple HK$0.3700 HK$0.4900 HK$0.6100 58
P/B Multiple HK$2.68 HK$3.57 HK$4.47 55
EV/EBIT HK$3.05 HK$4.06 HK$5.06 53
EV/EBITDA HK$2.38 HK$3.16 HK$3.93 54
EV/Revenue HK$0.3900 HK$0.5400 HK$0.6800 43
Asset-Based
NCAV (Graham) HK$1.26 HK$1.69 HK$2.52 50
Growth DCF
Growth DCF HK$1.98 HK$2.90 HK$4.13 80
Rev-Margin DCF HK$1.00 HK$1.32 HK$1.71 74
Economic Profit
Residual Income HK$1.99 HK$2.09 HK$2.23 76
ROIC Compounder HK$1.65 HK$1.87 HK$2.05 72
Growth Earnings
Growth-Adj P/E HK$2.37 HK$3.39 HK$4.40 68

Widest divergence: Growth Earnings (HK$3.39) versus Dividend Discount (HK$0.7400). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$658M
Revenue growth (YoY) +1.1%
Net margin 51.4%
Return on equity 8.7%
Free cash flow HK$320M FY2025
P/E ratio 1.3 as of Jul 2, 2026
More key figures
Operating margin 26.6%
EPS (TTM) HK$0.1600
EPS growth (YoY) -30.2%
Net cash HK$11.9M FY2025

Figures from reported company fundamentals · as of Aug 15, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 63/100

Of which business quality 62 · Market factors (momentum, volatility) 23

Profitability 40
Margins and returns on capital today
Quality Growth 28
Are margins and returns improving?
Cashflow 82
Earnings quality: real cash, not paper profit
Fin. Strength 70
Balance sheet, leverage, solvency risk
Investment 67
Disciplined investing over empire-building
Low Volatility 69
Calm price path (market factor)
Momentum 4
Price trend over the last 3–12 months (market factor)
52W Momentum 2
Distance to the 52-week high (market factor)
Net Issuance 82
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

China Xinhua Education Group Limited, together with its subsidiaries, provides higher and secondary vocational education services in the People's Republic of China.

Full 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, Clinical College of Anhui Medical University, Nanjing University of Finance & Economics Hongshan College; and Anhui Xinhua School. It also offers technical and management consultancy services, as well as formal undergraduate and junior college education services. China Xinhua Education Group Limited was incorporated in 2017 and is headquartered in Hefei, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Xinhua Education Group Ltd reported revenue of HK$658M in FY2025 versus HK$565M in FY2021, a compound +3.9%/yr. Reported net income was HK$338M in FY2025, compounding −1.2%/yr from FY2021.

Growth Quality 78/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
HK$658M
Latest YoY
+1.5%
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.
+1.7%
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.
+6.6%
Avg. growth/yr (11Y) 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%
Revenue +3.9%/yr
FY21 HK$565M
FY22 HK$625M
FY23 HK$643M
FY24 HK$648M
FY25 HK$658M
Net income −1.2%/yr
FY21 HK$354M
FY22 HK$236M
FY23 HK$307M
FY24 HK$330M
FY25 HK$338M
Character of growth · EPS growth decomposed (2014-2025) +9.2 % p.a.
Revenue per share +10.3 pp

of which total revenue +9.9 pp · buybacks/dilution +0.4 pp

EBIT margin +1.2 pp
Tax rate +0.0 pp
Residual (interest, one-offs) −2.2 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).

2779 screens 11% overvalued. Compare with New Oriental Education & Technology Group →

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Cite: Fair Value Calculator (2026). "China Xinhua Education Group Ltd Fair Value". https://www.fairvalue-calculator.com/stock/2779

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 63 · Above median
Fair Value upside −10% · Below median
Return on equity (TTM) 9% · Above median
Return on assets 4% · Above median
Net margin (TTM) 51% · Top 25%
Operating margin (TTM) 27% · Top 25%
Revenue growth 1% · Below median
Dividend yield (TTM) 18.6% · Top 25%
Debt / equity 0.12× · Higher than median

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

P/E (TTM) 1.3× · Cheaper than 75% of peers
P/B 0.12× · Cheaper than 75% of peers
P/S (TTM) 0.76× · Cheaper than median
P/FCF 0.2× · Cheaper than 75% of peers
EV/EBITDA 1.1× · 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 20 · sector 37
FUTURE 6 · sector 22
PAST 35 · sector 19
HEALTH 94 · sector 95
DIVIDEND 100 · sector 74

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 15, 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 China Xinhua Education Group Ltd (2779) overvalued or undervalued?
As of Aug 15, 2026, our model estimates a fair value of HK$0.2771 versus a price of HK$0.3100, about −11% (overvalued).
What is the fair value of 2779?
Our model-based fair value for China Xinhua Education Group Ltd is HK$0.2771 (as of Aug 15, 2026), built from audited fundamentals. The current price is HK$0.3100.
What is the quality score of 2779?
China Xinhua Education Group Ltd has a Quality Score of 63/100. 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 China Xinhua Education Group Ltd (2779)?
China Xinhua Education Group Ltd reported trailing-twelve-month revenue of about HK$658M (latest available figure, as of Aug 15, 2026).
What is the net profit margin of 2779?
The net profit margin of China Xinhua Education Group Ltd is about 51.4%, meaning it keeps roughly 51.4% 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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