China Vocational Education Holdings Limited (1756) AI Stock Analysis

• Market Cap: HK$732.00M
• Dividend Yield: N/A
• Average Volume (3M): 803.63K
• Price to Earnings (P/E): 1.5
• Beta (1Y): 0.31
• Revenue Growth: 13.37%
• EPS Growth: 15.55%
• Country: HK
• Employees: 3,498
• Sector: Industrials
• Sector Strength: 73
• Industry: Education & Training Services
• EPS (TTM): 0.21
• Shares Outstanding: 1,200,000,000
• 10 Day Avg. Volume: 617,400
• 30 Day Avg. Volume: 803,633
• 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: -16.67% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: HK$0.50 ▼(-16.67% Downside)

The overall stock score is driven by strong financial performance and an attractive valuation, with the low P/E ratio suggesting potential undervaluation. Technical analysis indicates neutral momentum with some caution due to potential overbought conditions.

China Vocational Education Holdings Limited Business Overview & Revenue Model

Company Description

China Vocational Education Holdings Limited, an investment holding company, provides private higher education and vocational education services in the People's Republic of China. It offers applied science-focused and practice-oriented programs. The company also provides student accommodation services. As of August 31, 2021, it had approximately 46,669 students enrolled at its 3 schools. The company was formerly known as Huali University Group Limited. China Vocational Education Holdings Limited was founded in 2000 and is headquartered in Guangzhou, the People's Republic of China.

How the Company Makes Money

The company makes money through tuition fees collected from students enrolled in its vocational training programs. Its revenue model is primarily based on the number of enrolled students and the duration of the courses offered. Additionally, China Vocational Education Holdings Limited may form partnerships with companies and organizations to provide customized training solutions, which can serve as an additional revenue stream. The company also benefits from government support and incentives aimed at promoting vocational education in China, which can contribute to its earnings.

China Vocational Education Holdings Limited Financial Statement Overview

Summary

China Vocational Education Holdings Limited exhibits strong revenue growth and profitability, with healthy margins and a stable balance sheet. However, cash flow management needs improvement, 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
EBITDA	798.55M	682.45M	541.39M	350.71M	474.15M
Net Income	451.09M	393.05M	259.78M	143.46M	306.67M
Balance Sheet
Total Assets	7.50B	7.27B	6.67B	6.33B	5.06B
Cash, Cash Equivalents and Short-Term Investments	840.88M	985.51M	803.85M	887.20M	865.06M
Total Debt	2.24B	2.45B	2.45B	2.32B	1.77B
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: Negative
• Last Price: 0.60
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1756, the sentiment is Negative. The current price of 0.6 is above the 20-day moving average (MA) of 0.60, below the 50-day MA of 0.60, and below the 200-day MA of 0.61, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.44 is Neutral, neither overbought nor oversold. The STOCH value of 91.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
1756	78 Outperform	HK$732.00M	1.46	12.24%	―	13.37%	15.55%
Sector *	64 Neutral	$10.73B	15.65	7.61%	2.01%	2.80%	-14.92%
1565	―	HK$586.86M	8.56	7.33%	5.50%	―	―
2779	77 Outperform	HK$965.15M	2.52	9.80%	10.03%	0.87%	9.69%
6913	71 Outperform	HK$420.21M	4.19	5.50%	4.19%	20.53%	-21.74%
1851	66 Neutral	HK$650.00M	3.91	17.84%	―	2.89%	1.19%
1569	56 Neutral	HK$712.79M	533.33	-2.11%	5.70%	-20.92%	-121.60%

China Vocational Education Holdings Limited Corporate Events

Leadership Changes at China Science and Education Industry Group Limited

China Science and Education Industry Group Limited announced significant leadership changes, including the resignation of Mr. Zou Kang as an executive director and the appointment of Mr. Xiao Xiaobing to the same position. Mr. Xiao brings extensive experience in educational management and software engineering, which may bolster the company’s operational and strategic capabilities.

China Science and Education Industry Group Limited Announces Board Composition

China Science and Education Industry Group Limited has announced the composition of its board of directors, which includes both executive and independent non-executive directors. The company is structured with three board committees: Audit, Nomination, and Remuneration, each with designated members from the board. This announcement provides clarity on the governance structure of the company, potentially impacting stakeholder confidence and operational transparency.

China Science and Education Industry Group Enters Construction Services Agreement

China Science and Education Industry Group Limited, formerly known as China Vocational Education Holdings Limited, has entered into a 2025 Construction Services Framework Agreement with Huali Construction. This agreement involves the provision of construction and decoration services for the company’s school campuses in Jiangmen and Zengcheng, China, from the effective date until August 31, 2028. The agreement is subject to the reporting, annual review, announcement, and Independent Shareholders’ approval requirements under Chapter 14A of the Listing Rules due to its nature as a continuing connected transaction.

China Science and Education Industry Group Limited Updates Nomination Committee

China Science and Education Industry Group Limited announced a change in the composition of its Nomination Committee, with Mr. Ding Yi stepping down and Ms. Chiu Lai Kuen Susanna MH JP being appointed as a new member. This change aligns with upcoming amendments to the Listing Rules and Corporate Governance Code, aiming to enhance the Board’s effectiveness and diversity, thereby improving the company’s corporate governance practices.

China Science and Education Industry Group Announces Board Composition

China Science and Education Industry Group Limited, incorporated in the Cayman Islands, has announced the composition of its board of directors and their roles within the company. The board consists of both executive and independent non-executive directors, with Mr. Zhang Zhifeng serving as the Chairman. The announcement also detailed the membership of three key board committees: Audit, Nomination, and Remuneration, highlighting the leadership roles and responsibilities of each director within these committees. This update is significant for stakeholders as it clarifies the governance structure and leadership dynamics within the company, potentially impacting its strategic direction and operational oversight.

China Vocational Education Holdings Limited Establishes Nomination Committee

China Vocational Education Holdings Limited has announced the terms of reference for its Nomination Committee. The committee, established by the board in August 2019, will consist of at least three members, with a majority being independent non-executive directors, and will include at least one member of a different gender. The committee is empowered to seek information from employees and professional advisers, ensuring comprehensive oversight and governance.