Hong Kong Education (Int'l) Investments Ltd (1082) AI Stock Analysis

• Market Cap: HK$912.07M
• Dividend Yield: N/A
• Average Volume (3M): 149.75K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.17
• Revenue Growth: -44.37%
• EPS Growth: -84.97%
• Country: HK
• Employees: 90
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): -0.07
• Shares Outstanding: 608,046,900
• 10 Day Avg. Volume: 263,648
• 30 Day Avg. Volume: 149,749
• PEG Ratio: 7.14
• Price to Book (P/B): 8.64
• Price to Sales (P/S): 7.39
• P/FCF Ratio: -63.92
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: HK$1.50 ▼(-0.66% Downside)

Hong Kong Education (Int'l) Investments Ltd faces significant financial challenges, with ongoing profitability and cash flow issues being the major concerns. While the technical analysis shows neutral trends, the valuation remains unattractive due to negative earnings. The company needs to improve cash flow management and profitability to enhance its financial health.

Hong Kong Education (Int'l) Investments Ltd Business Overview & Revenue Model

Company Description

Hong Kong Education (Int'l) Investments Limited, an investment holding company, provides private educational services in Hong Kong. The company operates through Provision of Private Educational Services, Investments in Securities, Money Lending, and VR and Digital Entertainment segments. It offers primary and secondary tutoring class, skill courses, test preparation courses, English language training and international test preparation courses, and dance tuition services. As of June 30, 2021, the company operated 1 learning center under the Modern Education brand name; 7 directly owned education centers and 31 franchised centers under the Modern Bachelor Education brand; and 1 dance college under the Shelly Lo Jazz & Ballet School brand name. It also trades in securities; provides loans; trades in equipment, service, and content specializing in the virtual reality technology, as well as gaming products; and offers content and solutions for the science, technology, engineering, art, and math education industry. The company was formerly known as Modern Education Group Limited and changed its name to Hong Kong Education (Int'l) Investments Limited in June 2013. Hong Kong Education (Int'l) Investments Limited was founded in 1997 and is headquartered in Kowloon Bay, Hong Kong.

How the Company Makes Money

The company generates revenue through various streams related to the education sector. This includes tuition fees from educational programs and courses, sales of educational materials, and potentially licensing fees for educational content. Additionally, the company may engage in partnerships with educational institutions or other businesses to expand its offerings and reach a broader audience. These collaborations can provide further revenue opportunities through shared services and joint ventures.

Hong Kong Education (Int'l) Investments Ltd Financial Statement Overview

Summary

The company shows modest revenue growth and a stable balance sheet but struggles with profitability and cash flow. Negative net income and EBIT, along with cash flow deficits, highlight significant financial challenges.

Income Statement

The company has shown a modest revenue growth of 4% from the previous year, indicating some progress in its operations. However, the persistent negative net income and EBIT suggest ongoing profitability challenges. The gross profit margin is improving, but negative EBIT and net profit margins highlight financial instability.

Balance Sheet

The company maintains a strong equity base with an equity ratio of 71%, reflecting solid asset management. However, the debt-to-equity ratio has increased slightly, indicating a marginal rise in leverage. Despite this, the overall financial position remains stable with a healthy stockholders' equity.

Cash Flow

The significant operating cash flow deficit shows cash management issues. Free cash flow has deteriorated from the previous year, raising concerns about the company's ability to generate cash from operations. The negative operating cash flow to net income ratio indicates cash flow challenges.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	110.56M	122.32M	117.61M	90.05M	43.30M	67.24M
Gross Profit	12.34M	12.86M	5.96M	-15.96M	-5.21M	1.61M
EBITDA	-9.33M	-11.50M	-17.41M	-23.74M	14.51M	-91.86M
Net Income	-22.67M	-27.56M	-28.54M	-32.89M	3.62M	-107.19M
Balance Sheet
Total Assets	137.42M	147.49M	169.48M	165.28M	194.02M	150.48M
Cash, Cash Equivalents and Short-Term Investments	38.23M	49.45M	79.42M	73.78M	72.56M	53.98M
Total Debt	25.86M	24.11M	29.73M	6.50M	7.60M	15.11M
Total Liabilities	41.97M	38.00M	57.25M	18.84M	26.04M	42.53M
Stockholders Equity	93.07M	104.63M	111.61M	145.80M	167.60M	107.86M
Cash Flow
Free Cash Flow	-22.01M	-14.14M	5.46M	13.84M	-35.24M	-19.97M
Operating Cash Flow	-21.65M	-13.78M	8.80M	16.24M	-34.66M	-19.79M
Investing Cash Flow	18.63M	20.25M	-3.30M	-2.38M	22.16M	20.46M
Financing Cash Flow	-11.81M	-11.68M	13.19M	-6.45M	11.06M	-824.00K

Hong Kong Education (Int'l) Investments Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1082, the sentiment is Negative. The current price of 1.51 is below the 20-day moving average (MA) of 1.54, below the 50-day MA of 1.53, and below the 200-day MA of 1.58, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.82 is Neutral, neither overbought nor oversold. The STOCH value of 49.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1082.

Hong Kong Education (Int'l) Investments Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2779	75 Outperform	HK$1.16B	2.80	9.80%	8.90%	0.87%	9.69%
1756	74 Outperform	HK$876.00M	1.74	12.24%	―	13.37%	15.55%
1851	70 Outperform	HK$1.04B	6.60	15.11%	―	1.40%	-15.24%
1525	68 Neutral	HK$1.08B	4.63	8.59%	7.69%	-0.56%	-26.67%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1082	49 Neutral	HK$912.07M	―	-64.27%	―	-44.37%	-84.97%

Hong Kong Education (Int'l) Investments Ltd Corporate Events

Bradaverse Education Establishes Remuneration Committee

Bradaverse Education (Int’l) Investments Group Limited, incorporated in the Cayman Islands and continued in Bermuda, has established a Remuneration Committee. This committee is tasked with formulating the company’s remuneration policy and recommending compensation packages for directors and senior management. The committee consists of at least three directors, with a majority being independent non-executive directors, ensuring compliance with Hong Kong’s listing rules. The Remuneration Committee will meet at least once a year, with the flexibility to conduct meetings via telecommunications or written resolutions.

Bradaverse Education Establishes Audit Committee for Enhanced Financial Oversight

Bradaverse Education (Int’l) Investments Group Limited, incorporated in the Cayman Islands and continued in Bermuda, has established an Audit Committee to enhance its financial oversight. The committee is tasked with reviewing the effectiveness of the company’s financial reporting, internal controls, and risk management systems. It will consist of at least three non-executive directors, with a majority being independent. The committee will meet at least twice a year, with the flexibility to convene more frequently if necessary, ensuring robust governance and compliance with Hong Kong Stock Exchange listing rules.

Hong Kong Education (Int’l) Investments Ltd Forms Nomination Committee

Hong Kong Education (Int’l) Investments Ltd has established a Nomination Committee to enhance its corporate governance. This committee is tasked with identifying and assessing potential directors, ensuring board independence, and aligning board composition with the company’s strategic goals. The committee will consist of at least three directors, primarily independent non-executive directors, and will meet at least annually to fulfill its responsibilities.