China Vocational Education Holdings Limited (1756) AI Stock Analysis

• Market Cap: HK$708.00M
• Dividend Yield: N/A
• Average Volume (3M): 598.83K
• Price to Earnings (P/E): 1.4
• Beta (1Y): 0.36
• Revenue Growth: 13.37%
• EPS Growth: 15.55%
• Country: HK
• Employees: 3,498
• Sector: Industrials
• Sector Strength: 84
• Industry: Education & Training Services
• EPS (TTM): 0.21
• Shares Outstanding: 1,200,000,000
• 10 Day Avg. Volume: 682,300
• 30 Day Avg. Volume: 598,833
• PEG Ratio: 0.05
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.22
• 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

• Rating: 78 Outperform
• Price Target: HK$0.50 ▼(-15.25%Downside)

The company demonstrates strong financial performance with significant revenue growth and profitability, complemented by a stable balance sheet. Valuation metrics suggest the stock is undervalued, enhancing its attractiveness. Technical analysis indicates moderate bullish momentum but with limited directional conviction. Despite challenges in cash flow management, the overall outlook remains positive.

China Vocational Education Holdings Limited Business Overview & Revenue Model

Company Description

China Vocational Education Holdings Limited (1756) is a prominent provider of vocational education services in China. Specializing in the integration of industry and education, the company offers a wide range of vocational training programs and services aimed at equipping students with practical skills tailored to meet industry needs. The company's core services include operation and management of vocational schools, development of educational content, and provision of training and certification programs across various sectors.

How the Company Makes Money

China Vocational Education Holdings Limited makes money primarily through tuition fees collected from students enrolled in its vocational training programs. These programs are operated through the company's network of vocational schools and training centers. Additionally, the company may generate revenue from partnerships with industries and enterprises that sponsor training programs or collaborate on curriculum development tailored to specific workforce needs. Revenue is also supplemented by government subsidies or educational grants aimed at supporting vocational training initiatives, as well as fees from certification and assessment services provided to students and professionals seeking to enhance their qualifications.

China Vocational Education Holdings Limited Financial Statement Overview

Summary

China Vocational Education Holdings Limited shows strong financial performance with robust revenue growth, healthy profit margins, and a stable balance sheet. However, there is room for improvement in cash flow management, particularly in increasing free cash flow relative to net income.

Income Statement

The company exhibits strong growth in revenue, with a significant increase from 2023 to 2024 by approximately 17.1%. Gross profit margin is healthy at 52.5%, and net profit margin is solid at 35.6%. EBIT and EBITDA margins are robust at 45.2% and 62.9%, respectively, indicating efficient management and cost control.

Balance Sheet

The debt-to-equity ratio is manageable at 0.59, showing a balanced approach to leveraging. The return on equity (ROE) is high at 11.8%, indicating effective use of equity to generate profits. The equity ratio is strong at 50.9%, suggesting a stable financial structure with a good proportion of equity to assets.

Cash Flow

Operating cash flow to net income ratio is 1.5, illustrating strong cash generation relative to net income. The free cash flow to net income ratio is lower at 0.20, reflecting significant capital expenditures. Free cash flow growth rate is negative, indicating potential challenges in cash flow management.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
1.27B	1.08B	907.76M	881.66M	761.48M
	Gross Profit
666.32M	624.60M	482.15M	470.51M	452.58M
	EBIT
573.65M	496.02M	384.04M	224.44M	354.29M
	EBITDA
798.55M	682.45M	541.39M	350.71M	474.15M
	Net Income Common Stockholders
451.09M	393.05M	259.78M	143.46M	306.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
840.88M	985.51M	803.85M	887.20M	865.06M
	Total Assets
7.50B	7.27B	6.67B	6.33B	5.06B
	Total Debt
2.24B	2.45B	2.45B	2.32B	1.77B
	Net Debt
1.40B	1.46B	1.65B	1.44B	902.89M
	Total Liabilities
3.68B	3.91B	3.77B	3.64B	2.38B
	Stockholders Equity
3.82B	3.37B	2.90B	2.69B	2.68B
Cash Flow		Free Cash Flow
91.61M	126.79M	-97.98M	-438.95M	-448.61M
	Operating Cash Flow
677.38M	696.89M	507.46M	709.53M	16.76M
	Investing Cash Flow
-585.57M	-569.42M	-593.76M	-1.15B	-471.75M
	Financing Cash Flow
-236.42M	54.34M	9.62M	475.17M	871.71M

China Vocational Education Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.59
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1756, the sentiment is Positive. The current price of 0.59 is above the 20-day moving average (MA) of 0.58, above the 50-day MA of 0.57, and below the 200-day MA of 0.60, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.10 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1756.

China Vocational Education Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1851	80 Outperform	HK$705.00M	4.43	17.84%	―	2.89%	1.19%
1756	78 Outperform	HK$708.00M	1.41	12.24%	―	13.37%	15.55%
2779	72 Outperform	HK$965.15M	2.70	9.21%	10.53%	-1.33%	4.95%
6913	66 Neutral	HK$373.52M	3.79	5.50%	4.64%	20.53%	-21.74%
Sector *	66 Neutral	$4.44B	12.06	5.34%	6.22%	4.17%	-11.81%
1569	51 Neutral	HK$569.39M	450.00	0.02%	7.26%	-18.89%	-99.23%

China Vocational Education Holdings Limited Corporate Events

China Science and Education Industry Group Reports Revenue Growth Amid Rising Costs

China Science and Education Industry Group Limited reported a 12.6% increase in revenue for the six months ending February 28, 2025, driven by higher student enrollment and increased tuition fees. Despite the revenue growth, the company’s gross profit margin decreased by 4.4% due to a significant rise in the cost of sales, impacting overall profitability. The company also saw a 33% increase in selling expenses, attributed to higher marketing costs for the academic year.

China Science and Education Industry Group Schedules Board Meeting for Interim Results

China Science and Education Industry Group Limited has announced a board meeting scheduled for April 28, 2025, to discuss and approve the interim results for the six months ending February 28, 2025. The meeting will also consider the recommendation of an interim dividend and review other matters, potentially impacting the company’s financial strategy and stakeholder interests.