China New Higher Education Group (HKSE:02001) Return-on-Tangible-Equity: 26.56% (As of Feb. 2026) — 22% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

HKSE:02001 China New Higher Education Group Ltd HKSE:02001
83 GF Score
Price HK$0.56
GF Value HK$1.64
Valuation Possible Value Trap
! 4 Warning Signs
View Full Analysis

What is China New Higher Education Group Return-on-Tangible-Equity?

China New Higher Education Group HKSE:02001 -1.75% 83 Return-on-Tangible-Equity is 26.56% as of Feb. 2026, which is 22% below its 10-year median of 33.98. GuruFocus rates HKSE:02001 with a GF Score™ of 83/100 and a GF Value™ of HK$1.64 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 246 Education companies, China New Higher Education Group ranks better than 67.89% on this metric.

Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. China New Higher Education Group's annualized net income for the quarter that ended in Feb. 2026 was HK$1,069 Mil. China New Higher Education Group's average shareholder tangible equity for the quarter that ended in Feb. 2026 was HK$4,025 Mil. Therefore, China New Higher Education Group's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 26.56%.

The historical rank and industry rank for China New Higher Education Group's Return-on-Tangible-Equity or its related term are showing as below:

HKSE:02001' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 15.87   Med: 33.98   Max: 53.1
Current: 23.35

During the past 11 years, China New Higher Education Group's highest Return-on-Tangible-Equity was 53.10%. The lowest was 15.87%. And the median was 33.98%.

HKSE:02001's Return-on-Tangible-Equity is ranked better than
67.89% of 246 companies
in the Education industry
Industry Median: 11.995 vs HKSE:02001: 23.35

China New Higher Education Group  (HKSE:02001) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.


China New Higher Education Group Return-on-Tangible-Equity Related Terms


China New Higher Education Group Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for China New Higher Education Group's Return-on-Tangible-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

China New Higher Education Group Return-on-Tangible-Equity Chart

China New Higher Education Group Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Aug21 Aug22 Aug23 Aug24 Aug25
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 32.21 44.92 53.10 45.10 35.74

China New Higher Education Group Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24 Feb25 Aug25 Feb26
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 41.92 28.23 33.73 22.99 26.56

HKSE:02001 vs EDU, TAL, LAUR: Return-on-Tangible-Equity Comparison

For the Education & Training Services subindustry, China New Higher Education Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


China New Higher Education Group Return-on-Tangible-Equity vs Education Industry

For the Education industry and Consumer Defensive sector, China New Higher Education Group's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where China New Higher Education Group's Return-on-Tangible-Equity falls into.


HKSE:02001
83GF Score
China New Higher Education Group Ltd HKSE:02001
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

China New Higher Education Group Return-on-Tangible-Equity Calculation

China New Higher Education Group's annualized Return-on-Tangible-Equity for the fiscal year that ended in Aug. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Aug. 2025 )  (A: Aug. 2024 )(A: Aug. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Aug. 2025 )  (A: Aug. 2024 )(A: Aug. 2025 )
=904.682/( (2091.934+2970.717 )/ 2 )
=904.682/2531.3255
=35.74 %

China New Higher Education Group's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Feb. 2026 )  (Q: Aug. 2025 )(Q: Feb. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Feb. 2026 )  (Q: Aug. 2025 )(Q: Feb. 2026 )
=1069.126/( (2970.717+5078.851)/ 2 )
=1069.126/4024.784
=26.56 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is two times the semi-annual (Feb. 2026) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

What does a Return-on-Tangible-Equity of 26.56% mean?
China New Higher Education Group (HKSE:02001) has a Return-on-Tangible-Equity of 26.56% as of Feb. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on China New Higher Education Group and its competitors. This is 22% below median its historical median of 33.98. Over the past decade, China New Higher Education Group's Return-on-Tangible-Equity has ranged from 15.87 to 53.10. According to the industry distribution chart, China New Higher Education Group ranks #79 out of 246 companies in the Education industry, placing it in the top 32.1%.
Is China New Higher Education Group's Return-on-Tangible-Equity too high?
China New Higher Education Group's current Return-on-Tangible-Equity of 26.56% is 22% below median its 10-year median of 33.98. Over the past 10 years, this metric has ranged from a low of 15.87 to a high of 53.10. The Education industry median Return-on-Tangible-Equity is 12.00. China New Higher Education Group's value of 26.56% is 121.4% above this industry median. Based on the distribution chart, China New Higher Education Group ranks #79 out of 246 companies in the Education industry, which is above the industry midpoint. Overall, China New Higher Education Group has a GF Score™ of 83/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China New Higher Education Group's Return-on-Tangible-Equity compare to EDU and TAL?
According to the Education industry distribution chart, China New Higher Education Group ranks #79 out of 246 companies for Return-on-Tangible-Equity. This puts China New Higher Education Group in the upper half of its industry. The industry median Return-on-Tangible-Equity is 12.00. China New Higher Education Group's value of 26.56% is 121.4% above this benchmark. Historically, China New Higher Education Group's own Return-on-Tangible-Equity has ranged from 15.87 to 53.10 over the past decade. While the company's 10-year median is 33.98 vs. the industry median of 12.00, China New Higher Education Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Education company?
The median Return-on-Tangible-Equity among Education companies is 12.00, based on 246 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. China New Higher Education Group's current Return-on-Tangible-Equity of 26.56% is 121.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on China New Higher Education Group and its competitors. For the Education industry, the median Return-on-Tangible-Equity is 12.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China New Higher Education Group's current Return-on-Tangible-Equity is 26.56%, which is 22% below median its own 10-year median of 33.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China New Higher Education Group stock overvalued right now?
Based on GuruFocus' analysis, China New Higher Education Group (HKSE:02001) is currently considered Possible Value Trap. The stock's GF Value™ is HK$1.64, compared to a current price of HK$0.56 — trading 65.9% below its estimated fair value. The current Return-on-Tangible-Equity is 26.56%, which is 22% below median its 10-year median of 33.98 and 121.4% above the Education industry median of 12.00. China New Higher Education Group's overall GF Score™ is 83/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For China New Higher Education Group (HKSE:02001), the current Return-on-Tangible-Equity is 26.56% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is China New Higher Education Group (HKSE:02001) Overvalued in 2026?

Based on GuruFocus' analysis, China New Higher Education Group stock appears to be undervalued. The current stock price of HK$0.56 is trading 65.9% below its estimated GF Value™ of HK$1.64. GuruFocus considers China New Higher Education Group to be Possible Value Trap.

Key valuation signals for HKSE:02001:

  • Return-on-Tangible-Equity: 26.56% (22% below median its 10-year median of 33.98)
  • GF Value™: HK$1.64 vs. price of HK$0.56 (65.9% below fair value)
  • GF Score™: 83/100 with 4 warning signs
  • Industry Position: 121.4% above the Education median (#79 of 246)

No single metric tells the full story. See the HKSE:02001 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


China New Higher Education Group Business Description

Other Exchanges 8CN:Germany
Address 5A Shuguang Xili Street, 20th floor, Tower F, Phoenix Place, Chaoyang District, Beijing, CHN
China New Higher Education Group Ltd is engaged in the operations of Yunnan School, Guizhou School, Central China School, Northeast School, Luoyang School, Guangxi Schools, Gansu School and Zhengzhou School. The Group provides education services in the PRC and operates within one geographical location, as all revenues were generated in the PRC.
83GF Score

Get the complete analysis for HKSE:02001

Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$0.56
Price
HK$1.64
GF Value