Edvantage Group Holdings Limited (0382) AI Stock Analysis

• Market Cap: HK$1.72B
• Dividend Yield: 11.69%
• Average Volume (3M): 2.15M
• Price to Earnings (P/E): 3.4
• Beta (1Y): 0.71
• Revenue Growth: 7.59%
• EPS Growth: -30.36%
• Country: HK
• Employees: 8,182
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): N/A
• Shares Outstanding: 1,199,066,800
• 10 Day Avg. Volume: 1,667,327
• 30 Day Avg. Volume: 2,145,275
• PEG Ratio: -0.11
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 34.66
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: HK$1.50 ▲(4.90% Upside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is driven primarily by very attractive valuation (low P/E and high dividend yield) and supportive technicals (price above key moving averages with positive MACD). These positives are tempered by weaker recent financial performance, especially the sharp decline in free cash flow and margin/earnings compression.

Positive Factors

Sustained Revenue Growth

Multi-year revenue expansion to 2.46B demonstrates durable demand for the group's education offerings and scale in the Greater Bay Area. Sustained top-line growth supports capacity utilization, program investment and long-term revenue resilience even amid cyclical pressures.

Reasonable Balance Sheet Cushion

A moderate leverage profile (debt/equity ~0.48) with rising equity provides financial flexibility to fund campus investments or acquisitions. The capital base reduces refinancing risk and supports operations through enrollment cycles, strengthening long‑term solvency.

Healthy Absolute Margins

Despite recent compression, gross and net margins remain elevated relative to many service sectors, reflecting pricing power and cost leverage in tuition-driven models. Persistently healthy margins sustain cash generation potential and reinvestment in program quality.

Negative Factors

Margin and Earnings Compression

Sharp year-over-year margin decline indicates margin pressure from higher costs or mix shifts, eroding profitability leverage. If structural, reduced margins impair retained earnings, slow reinvestment capacity and make earnings more sensitive to enrollment volatility over coming quarters.

Collapse in Free Cash Flow

A dramatic fall in free cash flow and poor cash conversion (FCF ~5% of net income) weakens the firm's ability to self-fund growth, dividends or debt servicing. Structural working-capital or reinvestment demands could constrain capital allocation flexibility for months ahead.

Rising Debt and Weaker Returns

Higher outstanding debt alongside falling ROE signals deteriorating capital efficiency and rising financial burden. Persistently lower returns reduce the margin for error on leverage, increasing sensitivity to slower enrollment or further margin erosion over the medium term.

Edvantage Group Holdings Limited Business Overview & Revenue Model

Company Description

Edvantage Group Holdings Limited, an investment holding company, operates private higher and vocational education institutions in the People's Republic of China and internationally. It also offers vocational skill level certificate education and supporting services related to industrial robot programming, childcare, financial big data, elderly care services, etc. In addition, it offers management, education consulting, hotel management, IT consultation, property management and landscaping, language training, estate decoration, science and technology promotion and application, advertisement design and activity planning services, and technician education services, as well as develops and retails software products and procures school supplies. The company was founded in 2003 and is headquartered in Guangzhou, the People's Republic of China. Edvantage Group Holdings Limited is a subsidiary of Debo Education Investments Holdings Limited.

How the Company Makes Money

Edvantage Group Holdings Limited generates revenue primarily through the provision of educational services, including tuition fees and other related educational charges collected from students enrolled in its higher education institutions. The company may also earn additional income from ancillary services such as accommodation, boarding, and other on-campus facilities offered to students. Strategic partnerships with government bodies and other educational organizations can also contribute to its financial performance by enhancing its service offerings and expanding its market reach.

Edvantage Group Holdings Limited Financial Statement Overview

Summary

Solid multi-year revenue growth and still-healthy absolute margins are offset by a clear recent deterioration: gross and net margins compressed, EBIT/net income fell despite higher sales, leverage increased, ROE declined, and free cash flow collapsed with very weak cash conversion (~5% of net income).

Income Statement

Revenue has grown steadily over the cycle (from 0.80B in 2020 to 2.46B in 2025), but the most recent annual period shows a sharp deceleration and profitability compression. Gross margin declined to ~40.7% (vs. ~48.6% prior year) and net margin fell to ~20.6% (vs. ~30.9%), with EBIT and net income down despite higher sales. Positives include still-healthy absolute margins and strong historical growth, but the latest year’s margin and earnings deterioration is the key overhang.

Balance Sheet

Leverage appears manageable with debt-to-equity around ~0.48 in the latest annual period, though total debt increased year over year (2.15B vs. 1.72B). Equity has grown (4.48B vs. 4.07B), supporting the capital base, but returns have softened meaningfully with return on equity falling to ~11.3% (from ~17.6%). Overall: a reasonably solid balance sheet for the industry, but rising debt and weakening returns reduce the quality of the setup.

Cash Flow

Cash generation quality weakened materially in the latest annual period. Operating cash flow remained strong in absolute terms (915M) but covered a much smaller share of earnings than before (coverage ~0.30 vs. ~0.38 prior year), and free cash flow collapsed to ~50M from ~586M, implying heavy reinvestment/working-capital drag. Free cash flow as a share of net income dropped to ~5% (from ~57%), making cash conversion the primary concern despite otherwise decent operating cash flow.

Breakdown	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	2.46B	2.31B	1.97B	1.69B	1.25B
Gross Profit	1.00B	1.12B	1.02B	849.50M	630.90M
EBITDA	900.66M	1.07B	832.58M	704.97M	552.09M
Net Income	508.29M	714.75M	618.37M	567.49M	413.72M
Balance Sheet
Total Assets	10.07B	9.10B	8.50B	7.22B	6.17B
Cash, Cash Equivalents and Short-Term Investments	2.62B	2.28B	2.00B	1.56B	1.30B
Total Debt	2.15B	1.72B	1.83B	1.68B	1.37B
Total Liabilities	4.72B	4.25B	4.26B	3.65B	3.12B
Stockholders Equity	4.48B	4.07B	3.54B	2.98B	2.53B
Cash Flow
Free Cash Flow	49.56M	585.71M	574.92M	299.66M	220.96M
Operating Cash Flow	914.59M	1.04B	1.35B	944.46M	956.29M
Investing Cash Flow	-928.65M	-655.34M	-681.62M	-515.61M	-1.75B
Financing Cash Flow	301.94M	-288.04M	-8.09M	94.21M	400.50M

Edvantage Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.43
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0382, the sentiment is Negative. The current price of 1.43 is below the 20-day moving average (MA) of 1.51, below the 50-day MA of 1.46, and below the 200-day MA of 1.48, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.30 is Neutral, neither overbought nor oversold. The STOCH value of 19.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0382.

Edvantage Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2001	81 Outperform	HK$1.64B	2.11	17.52%	10.76%	7.71%	11.65%
0382	72 Outperform	HK$1.72B	3.38	11.86%	11.69%	7.59%	-30.36%
6169	69 Neutral	HK$2.21B	1.98	10.86%	―	0.40%	111.11%
1765	66 Neutral	HK$1.42B	3.89	4.28%	―	6.04%	-36.91%
1935	66 Neutral	HK$1.76B	1.26	9.04%	―	4.79%	-36.61%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1769	62 Neutral	HK$1.16B	7.69	18.62%	3.40%	23.95%	-1.00%

Edvantage Group Holdings Limited Corporate Events

Edvantage Group Wins Full Shareholder Backing at AGM, Approves Final Dividend and Share Issue Mandate

Edvantage Group Holdings Limited announced that all resolutions proposed at its annual general meeting held on 26 January 2026 were approved by shareholders via poll, indicating strong investor support for the company’s current governance and strategic direction. Shareholders adopted the audited financial statements for the year ended 31 August 2025, approved a final dividend of HK7.4 cents per share to be paid from the share premium account, re-elected four directors, confirmed the board’s authority to set directors’ pay, reappointed Deloitte Touche Tohmatsu as auditor, and granted the board a general mandate to issue additional shares up to 20% of the existing share capital (excluding treasury shares), enhancing financial flexibility for future capital-raising or corporate activities.

The most recent analyst rating on (HK:0382) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on Edvantage Group Holdings Limited stock, see the HK:0382 Stock Forecast page.

Edvantage Group Clarifies Clerical Error in AGM Proxy Form

Edvantage Group Holdings Limited has issued a clarification regarding a clerical error in the English version of its proxy form for the annual general meeting scheduled for 26 January 2026, stating that the AGM date on the form should read 26 January 2026. The company emphasized that the Chinese version of the proxy form is correct, the error does not affect the validity of any submitted proxy forms, and shareholders are not required to take any action, indicating that the correction is purely administrative with no impact on voting arrangements or shareholder rights.

The most recent analyst rating on (HK:0382) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on Edvantage Group Holdings Limited stock, see the HK:0382 Stock Forecast page.

Edvantage Group Sets 2026 AGM to Approve Results, Dividend and Share Issuance Mandate

Edvantage Group Holdings Limited has called its annual general meeting for 26 January 2026 in Hong Kong, where shareholders will vote on adopting the audited consolidated financial statements for the year ended 31 August 2025 and the related directors’ and auditor’s reports. The agenda also includes a proposed final dividend of HK7.4 cents per share to be paid from the share premium account, the re-election of two executive directors and two independent non-executive directors, the re-appointment of Deloitte Touche Tohmatsu as auditor, and the granting of a general mandate to the board to issue additional shares and deal in treasury shares, which would give the company added flexibility for future capital management and potential financing activities while signaling ongoing confidence in its governance and financial position.

The most recent analyst rating on (HK:0382) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on Edvantage Group Holdings Limited stock, see the HK:0382 Stock Forecast page.

Edvantage Group Moves to Update Constitution and Boost Share Capital Ahead of Market Reforms

Edvantage Group Holdings Limited has proposed amendments to its memorandum and articles of association to align with recent changes to Hong Kong’s Listing Rules and Cayman Islands law, including new core shareholder protection standards, preparations for an uncertificated securities market, and expanded provisions for virtual and hybrid general meetings with electronic voting. The board also plans to update the constitutional documents to address the treatment of treasury shares, formalise electronic dissemination of corporate communications via implied consent, and reflect a planned increase in authorised share capital, with all changes to be put to shareholders for approval at the annual general meeting scheduled for 26 January 2026, signaling the company’s intent to enhance governance flexibility and readiness for evolving market infrastructure.

The most recent analyst rating on (HK:0382) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on Edvantage Group Holdings Limited stock, see the HK:0382 Stock Forecast page.

Edvantage Group Announces Final Dividend for FY2025

Edvantage Group Holdings Limited has announced a final ordinary cash dividend of HKD 0.074 per share for the financial year ending 31 August 2025. The dividend will be paid on 29 May 2026, following shareholder approval on 26 January 2026. This announcement reflects the company’s financial health and commitment to returning value to its shareholders, potentially enhancing its market position and stakeholder confidence.

The most recent analyst rating on (HK:0382) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on Edvantage Group Holdings Limited stock, see the HK:0382 Stock Forecast page.

Edvantage Group Holdings Limited Reports Annual Results with Revenue Growth Amid Profit Decline

Edvantage Group Holdings Limited reported its annual results for the year ended 31 August 2025, showing a revenue increase of 7.7% to RMB 2,489,038,000. However, the company experienced a decline in gross profit and profit attributable to owners, with a notable decrease in basic earnings per share by 30.3%. Despite these challenges, the number of student enrollments increased by 4.4%, and the Board recommended a final dividend of HK7.4 cents per share, pending shareholder approval.

The most recent analyst rating on (HK:0382) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on Edvantage Group Holdings Limited stock, see the HK:0382 Stock Forecast page.