Stock Analysis

China New Higher Education Group Full Year 2024 Earnings: Revenues Beat Expectations, EPS In Line

SEHK:2001
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China New Higher Education Group (HKG:2001) Full Year 2024 Results

Key Financial Results

  • Revenue: CN¥2.41b (up 14% from FY 2023).
  • Net income: CN¥756.1m (up 7.5% from FY 2023).
  • Profit margin: 31% (down from 33% in FY 2023). The decrease in margin was driven by higher expenses.
  • EPS: CN¥0.49 (up from CN¥0.45 in FY 2023).
revenue-and-expenses-breakdown
SEHK:2001 Revenue and Expenses Breakdown January 3rd 2025

All figures shown in the chart above are for the trailing 12 month (TTM) period

China New Higher Education Group Revenues Beat Expectations

Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) was mostly in line with analyst estimates.

In the last 12 months, the only revenue segment was Provision of Education Services contributing CN¥2.41b. Notably, cost of sales worth CN¥1.54b amounted to 64% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to CN¥113.4m (74% of total expenses). Over the last 12 months, the company's earnings were enhanced by non-operating gains of CN¥33.9m. Explore how 2001's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 7.2% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Consumer Services industry in Hong Kong.

Performance of the Hong Kong Consumer Services industry.

The company's share price is broadly unchanged from a week ago.

Risk Analysis

We don't want to rain on the parade too much, but we did also find 3 warning signs for China New Higher Education Group (1 shouldn't be ignored!) that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.