China East Education Holdings Limited (0667) AI Stock Analysis

• Market Cap: HK$14.59B
• Dividend Yield: 3.15%
• Average Volume (3M): 6.36M
• Price to Earnings (P/E): 20.7
• Beta (1Y): 1.06
• Revenue Growth: 7.48%
• EPS Growth: 87.88%
• Country: HK
• Employees: 10,346
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.20
• Shares Outstanding: 2,213,679,000
• 10 Day Avg. Volume: 5,178,182
• 30 Day Avg. Volume: 6,362,671
• PEG Ratio: 0.11
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 1.36
• P/FCF Ratio: 9.34
• 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: HK$10.03
• Price Target Upside: 49.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: HK$7.00 ▲(4.17% Upside)

The overall stock score of 67 reflects a solid financial performance with strong profitability and cash flow metrics. The technical analysis indicates mixed signals with some bearish momentum, while the valuation suggests the stock is fairly valued with a decent dividend yield. The absence of earnings call data and corporate events limits further insights into the company's strategic direction.

Positive Factors

Cash Flow Generation

The significant increase in free cash flow indicates strong cash conversion efficiency and financial flexibility, enabling future investments and growth.

Profitability Improvement

Improved profitability reflects effective cost management and operational efficiency, enhancing the company's ability to generate sustainable earnings.

Financial Stability

The low debt-to-equity ratio indicates conservative leverage, providing financial stability and reducing risk associated with high debt levels.

Negative Factors

Slowed Revenue Growth

The slowdown in revenue growth compared to previous years suggests challenges in market expansion and highlights the need for strategic growth initiatives.

Limited Asset Growth

Marginal asset growth may limit scalability and expansion opportunities, necessitating increased investment or strategic initiatives for growth.

Market Expansion Challenges

The deceleration in revenue growth indicates potential difficulties in expanding market reach, necessitating innovative strategies to drive future growth.

China East Education Holdings Limited Business Overview & Revenue Model

Company Description

China East Education Holdings Limited, an investment holding company, provides vocational training education services. The company provides vocational training education in culinary arts, information technology and internet technology, auto services, and fashion and beauty sectors. As of December 31, 2021, it operated a network of 231 schools, which included 72 New East Culinary Education centers that offer culinary training programs in the cooking traditions and practices of Chinese cuisines; 45 Omick Education of Western Cuisine and Pastry centers, which provide culinary training on western pastry and western food that include baking, desserts, western cuisines, bartending, and barista training; 33 Xinhua Internet Technology Education centers; 22 Wisezone Data Technology Education centers that provide information and internet technology programs to junior college and university students; 38 Wontone Automotive Education centers, which provide auto repair skill training, and practical training of other auto services, including automobile commerce; 1 On-mind Fashion & Beauty Education center that focuses on skill development of fashion and beauty professionals; and 20 customized catering experience centers under Cuisine Academy brand in Mainland China and Hong Kong. The company also engages in the provision of data technology educational services; and technology development, consulting, and promotion business. China East Education Holdings Limited was founded in 1988 and is headquartered in Hefei, China.

How the Company Makes Money

China East Education generates revenue primarily through tuition fees from students enrolled in its vocational and professional education programs. The company also earns income from ancillary services, such as training programs, consultation services for enterprises, and partnerships with local governments to provide specialized training initiatives. Additionally, the growth of its online education platforms has opened new revenue streams, allowing the company to reach a broader audience and diversify its offerings. Strategic collaborations with industry partners and educational institutions further enhance its market position and contribute to its financial performance.

China East Education Holdings Limited Financial Statement Overview

Summary

China East Education Holdings Limited demonstrates solid financial health with improving profitability and cash flow metrics in 2024. The consistent revenue growth and strong margins reflect efficient operations, while conservative leverage and improved ROE indicate financial stability. Cash flow metrics highlight exceptional liquidity and cash management. While the company shows strengths in profitability and cash generation, enhancing revenue growth and asset expansion could further bolster its financial position.

Income Statement

The company exhibits a stable gross profit margin of 51.4% as of 2024, signifying effective cost management. The net profit margin improved to 12.5% from 6.9% in 2023, indicating stronger profitability. Revenue growth is stable at 3.5% from 2023 to 2024, reflecting a consistent demand. EBIT and EBITDA margins are at 15.1% and 22.8% respectively, showing healthy operational efficiency. However, revenue growth has slowed compared to previous years, suggesting a need for strategic growth initiatives.

Balance Sheet

The company maintains a strong equity base with an equity ratio of 60.6% in 2024, highlighting financial stability. The debt-to-equity ratio is relatively low at 0.25, indicating conservative leverage. Return on Equity (ROE) has improved to 8.9% from 4.9% in 2023, suggesting enhanced shareholder value creation. Nevertheless, total assets and equity have shown marginal growth, which may limit scalability without increased investment or strategic expansion.

Cash Flow

Free cash flow has surged by 227% from 2023 to 2024, driven by improved operating cash flow and reduced capital expenditures. The operating cash flow to net income ratio is robust at 2.43, suggesting strong cash conversion efficiency. Similarly, the free cash flow to net income ratio is commendable at 1.17, indicating efficient cash utilization. These positive trends reflect excellent liquidity and financial flexibility, positioning the company well for future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.32B	4.12B	3.98B	3.82B	4.14B	3.65B
Gross Profit	2.32B	2.11B	1.91B	1.89B	2.11B	1.97B
EBITDA	1.13B	936.77M	641.19M	730.52M	864.87M	850.13M
Net Income	644.03M	512.60M	272.62M	367.53M	302.17M	257.61M
Balance Sheet
Total Assets	9.82B	9.48B	9.29B	9.47B	9.64B	9.82B
Cash, Cash Equivalents and Short-Term Investments	3.57B	3.50B	3.43B	3.83B	4.97B	5.68B
Total Debt	1.48B	1.42B	1.57B	1.80B	1.69B	1.62B
Total Liabilities	4.05B	3.73B	3.68B	3.77B	3.90B	3.78B
Stockholders Equity	5.77B	5.75B	5.61B	5.70B	5.74B	6.04B
Cash Flow
Free Cash Flow	846.43M	597.99M	182.65M	-329.65M	214.79M	779.44M
Operating Cash Flow	1.38B	1.24B	1.02B	621.72M	977.85M	1.11B
Investing Cash Flow	-203.85M	-551.72M	-187.86M	-638.34M	-627.61M	-1.08B
Financing Cash Flow	-760.55M	-755.84M	-776.95M	-879.86M	-1.06B	-804.72M

China East Education Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.72
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0667, the sentiment is Neutral. The current price of 6.72 is above the 20-day moving average (MA) of 6.71, above the 50-day MA of 6.43, and above the 200-day MA of 6.59, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 49.99 is Neutral, neither overbought nor oversold. The STOCH value of 30.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0667.

China East Education Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0839	76 Outperform	HK$8.74B	8.13	5.90%	9.49%	11.85%	100.46%
9901	73 Outperform	HK$74.47B	25.52	9.39%	1.07%	7.07%	-2.52%
1969	72 Outperform	HK$3.64B	4.02	19.40%	4.65%	9.69%	7.31%
0667	67 Neutral	HK$14.59B	20.74	11.36%	3.15%	7.48%	87.88%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1797	49 Neutral	HK$20.87B	7,253.33	0.08%	―	-33.04%	-98.87%