Leader Education Limited (1449) AI Stock Analysis

• Market Cap: HK$176.67M
• Dividend Yield: N/A
• Average Volume (3M): 61.33K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.48
• Revenue Growth: 8.89%
• EPS Growth: -65.76%
• Country: HK
• Employees: 688
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Education & Training Services
• EPS (TTM): 0.04
• Shares Outstanding: 666,667,000
• 10 Day Avg. Volume: 45,300
• 30 Day Avg. Volume: 61,333
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$0.50
• Price Target Upside: 92.31% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 70 Neutral
• Price Target: HK$0.50 ▲(92.31% Upside)

The overall stock score reflects strong financial performance with notable revenue growth and operational efficiency, tempered by high leverage and negative free cash flow. Technical analysis indicates a neutral to slightly bearish trend, while valuation metrics suggest the stock is reasonably priced. The absence of earnings call and corporate events data limits additional insights.

Leader Education Limited Business Overview & Revenue Model

Company Description

Leader Education Limited, an investment holding company, offers private higher education services in the People's Republic of China. The company operates Heilongjiang College in Harbin City, Heilongjiang province that primarily offers undergraduate programs in the areas of engineering and business management. It also provides education and management consultancy, and technical and artificial intelligence services. The company was founded in 2002 and is headquartered in Harbin, China.

How the Company Makes Money

Leader Education Limited generates revenue through tuition fees charged for its educational services. The company operates several schools that cater to different educational levels, and these institutions collect fees from students enrolled in their programs. Additionally, Leader Education may offer supplementary educational services such as after-school programs, summer camps, and other extracurricular activities, which can also contribute to its earnings. The company's revenue model relies heavily on maintaining and expanding its student base while ensuring the quality of education provided to attract new enrollments. Significant partnerships with educational content providers or technology platforms, if any, could also enhance its service offerings and potentially attract more students, further boosting revenue.

Leader Education Limited Financial Statement Overview

Summary

Leader Education Limited shows strong revenue growth and operational efficiency with a healthy EBITDA margin of 44.27%. However, profitability metrics like Net Profit Margin and EBIT Margin are concerning, and the company faces challenges with negative free cash flow and high leverage.

Income Statement

Leader Education Limited shows a consistent growth trajectory in revenue with a Revenue Growth Rate of 17.09% in the recent year. Gross Profit Margin is strong at 36.81%, although profitability metrics like Net Profit Margin at 6.18% and EBIT Margin are concerning due to EBIT being zero in the latest period. Despite these concerns, EBITDA Margin remains healthy at 44.27%, indicating underlying operational strength.

Balance Sheet

The company maintains a solid equity base with an Equity Ratio of 36.48%, ensuring financial stability. However, the Debt-to-Equity Ratio is relatively high at 1.31, suggesting leverage risk. Return on Equity has declined to 2.15% due to lower net income, indicating reduced efficiency in generating returns on shareholders' equity.

Cash Flow

Free Cash Flow has seen significant decline, turning negative recently, which is a potential red flag. The Operating Cash Flow to Net Income Ratio is strong at 9.10, indicating robust cash generation relative to net income. However, the Free Cash Flow to Net Income Ratio is negative, reflecting increased capital expenditures.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	322.90M	275.76M	238.26M	196.14M	156.10M
Gross Profit	118.87M	105.36M	101.10M	98.96M	85.04M
EBITDA	143.00M	109.70M	104.26M	102.92M	74.01M
Net Income	19.96M	57.60M	56.02M	38.65M	42.36M
Balance Sheet
Total Assets	2.54B	2.20B	2.07B	2.00B	1.87B
Cash, Cash Equivalents and Short-Term Investments	345.44M	277.98M	253.09M	303.93M	337.55M
Total Debt	1.22B	926.84M	855.57M	877.54M	820.82M
Total Liabilities	1.62B	1.29B	1.15B	1.15B	1.07B
Stockholders Equity	927.91M	908.93M	912.75M	848.68M	800.57M
Cash Flow
Free Cash Flow	-136.23M	83.93M	22.81M	-30.57M	-125.55M
Operating Cash Flow	181.56M	218.94M	132.27M	172.38M	31.85M
Investing Cash Flow	-317.79M	-138.38M	-108.94M	-202.96M	-158.64M
Financing Cash Flow	211.21M	-65.55M	-82.65M	850.00K	325.76M

Leader Education Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.26
• 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:1449, the sentiment is Negative. The current price of 0.26 is below the 20-day moving average (MA) of 0.27, below the 50-day MA of 0.27, and below the 200-day MA of 0.26, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.98 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1449.

Leader Education Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1449	70 Neutral	HK$176.67M	10.47	1.65%	―	8.89%	-65.76%
1752	69 Neutral	130.10M	11.51	―	3.28%	3.75%	8.16%
1758	51 Neutral	148.11M	-2.63	-19.94%	―	52.66%	-172.14%
1775	45 Neutral	186.55M	-6.47	―	―	20.36%	-38.36%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Leader Education Limited Corporate Events

Leader Education Limited Updates Nomination Committee

Leader Education Limited has announced a change in the composition of its Nomination Committee, appointing Ms. Dong Ling and Mr. Chan Ngai Fan as new members effective from July 1, 2025. This strategic move is expected to enhance the governance structure of the company, potentially impacting its operations and stakeholder relations positively.

Leader Education Limited Announces Board Restructuring

Leader Education Limited, a company incorporated in the Cayman Islands, has announced changes to its board of directors, effective from July 1, 2025. The restructuring includes the appointment of Mr. Liu Laixiang as Chairman and the designation of roles across various committees, which may impact the company’s governance and strategic direction.

Leader Education Limited Forms Nomination Committee to Strengthen Board Governance

Leader Education Limited has established a Nomination Committee to enhance its board governance structure. The committee will consist of at least three members, with a majority being independent non-executive directors by July 2025, including at least one member of a different gender. This move is aimed at ensuring diversity and a balanced composition of skills and experience on the board, aligning with the company’s corporate strategy and compliance with Hong Kong’s listing rules.