Edvance International Holdings Ltd. (1410) AI Stock Analysis

• Market Cap: HK$642.70M
• Dividend Yield: N/A
• Average Volume (3M): 156.67K
• Price to Earnings (P/E): 14.0
• Beta (1Y): -0.12
• Revenue Growth: 9.58%
• EPS Growth: 48.41%
• Country: HK
• Employees: 121
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.03
• Shares Outstanding: 1,004,217,000
• 10 Day Avg. Volume: 227,000
• 30 Day Avg. Volume: 156,666
• PEG Ratio: -0.58
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 3.69
• 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$0.82 ▲(44.04% Upside)

The score is driven primarily by solid financial resilience (strong cash conversion and improved leverage) and supportive technical momentum (price above all major moving averages with positive MACD). This is tempered by multi-year margin and ROE compression and only moderate valuation support from a mid-range P/E without dividend yield.

Positive Factors

Strong free cash flow generation

A 65% rise in free cash flow and FCF nearly matching net income indicate high cash conversion and earnings quality. This durable cash generation supports reinvestment in product development, funds working capital, and provides flexibility for M&A or debt reduction over the medium term.

Material deleveraging

Cutting leverage dramatically improves financial flexibility and lowers interest exposure. A much lower debt-to-equity supports stability in downturns, enables strategic investment in platforms or content, and reduces refinancing risk, strengthening the balance sheet over multiple quarters.

Diversified, recurring revenue mix

A revenue mix of product sales, subscriptions and content licensing provides recurring streams and higher customer retention potential. This diversification across channels and partnerships with schools/governments underpins predictable revenues and scalable digital delivery over the medium term.

Negative Factors

Significant gross margin decline

A multi-year drop in gross margin of ~11 percentage points signals persistent cost pressures or pricing erosion. Reduced gross margin weakens operating leverage, constrains funds available for R&D and sales, and makes sustainable profit growth harder without structural cost or pricing fixes.

Net margin compression

A low net margin near 3% limits retained earnings and leaves little buffer against adverse shocks. Persistently thin profitability reduces capital available for reinvestment, increases sensitivity to revenue variability, and undermines long-term return generation for shareholders.

Declining return on equity

A halving of ROE over several years indicates deteriorating capital efficiency. Lower returns on equity can reflect margin erosion or suboptimal asset use and, if sustained, may impair the company's ability to attract capital and finance growth initiatives over the medium term.

Edvance International Holdings Ltd. Business Overview & Revenue Model

Company Description

Edvance International Holdings Limited, an investment holding company, distributes cybersecurity products and services in the People's Republic of China, Hong Kong, Mongolia, Macau, and Singapore. It operates through Cybersecurity Products Business, Cybersecurity Services Business, and Financial Services and Investment Business segments. The Cybersecurity Products Business segment engages in the procurement of network security, system security, and application and data security products. The Cybersecurity Services Business segment provides technical implementation, and maintenance and support services to customers. The Financial Services and Investment Business segment offers financial services to customers, as well as engages in the venture investment and securities trading. It also provides online marketing and multimedia production, and information technology services. The company was founded in 2002 and is headquartered in Central, Hong Kong. Edvance International Holdings Limited is a subsidiary of Success Vision International Group Limited.

How the Company Makes Money

Edvance International Holdings Ltd. generates revenue through a diversified model that includes the sale of educational products, subscription-based services for digital learning platforms, and consulting services aimed at educational institutions. Key revenue streams encompass the development and licensing of proprietary educational content, as well as partnerships with schools and organizations that implement their technology solutions. Additionally, the company may leverage collaborations with government bodies and educational authorities to secure funding for large-scale projects or initiatives, further contributing to its earnings.

Edvance International Holdings Ltd. Financial Statement Overview

Summary

Strong cash-flow quality (free cash flow up 65.12% and ~98.74% FCF-to-net income) and improved leverage (debt-to-equity down to 0.20) support the score. Offsetting this, profitability has weakened over time, with gross margin falling to 19.25% and net margin to 3.34%, alongside a lower ROE (13.16%).

Income Statement

Edvance International Holdings Ltd. has shown a consistent revenue growth rate over the years, with a 5.39% increase in the latest period. However, the gross profit margin has decreased from 30.14% in 2021 to 19.25% in 2025, indicating pressure on cost management. The net profit margin has also declined from 8.46% in 2021 to 3.34% in 2025, reflecting challenges in maintaining profitability. Despite these challenges, the company has managed to improve its EBIT and EBITDA margins compared to the previous year.

Balance Sheet

The company's debt-to-equity ratio has improved significantly from 0.87 in 2023 to 0.20 in 2025, indicating better leverage management. The return on equity has decreased from 24.84% in 2021 to 13.16% in 2025, suggesting a decline in profitability relative to shareholders' equity. The equity ratio has remained stable, reflecting a consistent capital structure.

Cash Flow

The free cash flow growth rate has been strong, with a 65.12% increase in the latest period, indicating improved cash generation capabilities. The operating cash flow to net income ratio has improved, suggesting better cash conversion from earnings. The free cash flow to net income ratio is high at 98.74%, indicating efficient cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	763.54M	734.35M	625.37M	577.49M	525.38M	410.50M
Gross Profit	139.61M	141.39M	136.99M	137.20M	128.28M	123.71M
EBITDA	72.31M	53.56M	58.80M	-1.60M	23.25M	54.20M
Net Income	51.72M	24.55M	29.71M	-27.48M	22.79M	34.74M
Balance Sheet
Total Assets	908.49M	894.22M	907.48M	648.73M	540.34M	384.87M
Cash, Cash Equivalents and Short-Term Investments	153.13M	133.57M	101.38M	68.69M	53.53M	86.40M
Total Debt	31.58M	37.99M	106.63M	117.12M	71.47M	40.44M
Total Liabilities	696.07M	707.70M	743.19M	511.49M	375.73M	240.69M
Stockholders Equity	212.42M	186.51M	161.78M	133.91M	160.02M	139.86M
Cash Flow
Free Cash Flow	35.67M	65.57M	7.20M	13.08M	-15.84M	26.00M
Operating Cash Flow	36.62M	66.41M	13.81M	23.09M	19.95M	34.92M
Investing Cash Flow	35.25M	32.89M	-4.50M	-11.37M	-60.96M	-16.82M
Financing Cash Flow	-32.63M	-72.89M	-20.66M	6.13M	17.10M	-18.28M

Edvance International Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1410, the sentiment is Positive. The current price of 0.57 is below the 20-day moving average (MA) of 0.63, below the 50-day MA of 0.58, and above the 200-day MA of 0.34, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 58.12 is Neutral, neither overbought nor oversold. The STOCH value of 27.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1410.

Edvance International Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1410	72 Outperform	HK$642.70M	13.98	27.72%	―	9.58%	48.41%
8017	69 Neutral	HK$1.04B	8.47	39.26%	―	146.18%	1617.05%
8062	63 Neutral	HK$96.48M	-75.77	-0.93%	8.40%	-29.38%	-104.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0818	54 Neutral	HK$1.39B	9.73	1.98%	―	-17.23%	-6.20%
8420	41 Neutral	HK$24.86M	-1.93	-56.58%	―	52.39%	-14.75%
8613	40 Underperform	HK$84.82M	-2.26	―	―	-43.10%	-5.98%

Edvance International Holdings Ltd. Corporate Events

Edvance International Announces Shareholding Change and Director Resignation

Edvance International Holdings Ltd. has announced a change in the shareholding structure of its controlling shareholder, Success Vision, with Mr. Raymond Liu becoming the sole beneficial owner following the completion of a sale and purchase agreement. Additionally, the company has announced the resignation of Mr. Ashley Lo as a non-executive director, who is stepping down to focus on other business and personal commitments. The board expressed gratitude for Mr. Lo’s contributions during his tenure.

The most recent analyst rating on (HK:1410) stock is a Hold with a HK$0.62 price target. To see the full list of analyst forecasts on Edvance International Holdings Ltd. stock, see the HK:1410 Stock Forecast page.

Edvance International Holdings Announces Board Composition and Roles

Edvance International Holdings Ltd. has announced the composition of its board of directors and their respective roles within the company. The board consists of both executive and independent non-executive directors, with Mr. Liu Yui Ting Raymond serving as Chairman and CEO. The announcement details the membership of directors in various board committees, which include the Audit, Remuneration, Nomination, and Investment Committees, highlighting the leadership and governance structure of the company.

The most recent analyst rating on (HK:1410) stock is a Hold with a HK$0.62 price target. To see the full list of analyst forecasts on Edvance International Holdings Ltd. stock, see the HK:1410 Stock Forecast page.

Edvance International Announces Interim Results for FY2026 1H

Edvance International Holdings Ltd. has announced its unaudited interim results for the six months ending 30 September 2025. The results comply with the relevant requirements of the Hong Kong Stock Exchange and will be made available to shareholders and on the company’s website. This announcement reflects the company’s ongoing commitment to transparency and regulatory compliance, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (HK:1410) stock is a Buy with a HK$0.50 price target. To see the full list of analyst forecasts on Edvance International Holdings Ltd. stock, see the HK:1410 Stock Forecast page.

Edvance International Schedules Board Meeting for Interim Results and Dividend Discussion

Edvance International Holdings Ltd. has announced a board meeting scheduled for November 25, 2025, to discuss and approve the interim results for the six months ending September 30, 2025. The meeting will also consider the recommendation of an interim dividend, which could impact shareholder returns and reflect the company’s financial health.

The most recent analyst rating on (HK:1410) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Edvance International Holdings Ltd. stock, see the HK:1410 Stock Forecast page.