China Vocational Education Holdings Limited (1756) AI Stock Analysis

• Market Cap: HK$768.00M
• Dividend Yield: N/A
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): 1.5
• Beta (1Y): 0.47
• Revenue Growth: 13.88%
• EPS Growth: 1.52%
• Country: HK
• Employees: 3,498
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): N/A
• Shares Outstanding: 1,200,000,000
• 10 Day Avg. Volume: 442,800
• 30 Day Avg. Volume: 1,288,233
• PEG Ratio: 0.08
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 6.31
• 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: 74 Outperform
• Price Target: HK$1.00 ▲(58.73% Upside)

The overall stock score is driven primarily by strong financial performance and attractive valuation. The company's robust revenue growth and profitability, along with a low P/E ratio, suggest a solid investment opportunity. However, technical indicators warn of potential overbought conditions, which could lead to short-term volatility.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding demand for vocational education services and effective market penetration, supporting long-term business sustainability.

Profitability

High profit margins suggest efficient cost management and pricing power, contributing to sustained profitability and competitive advantage in the education sector.

Balance Sheet Health

A manageable debt-to-equity ratio indicates financial stability and flexibility, enabling the company to invest in growth opportunities without excessive risk.

Negative Factors

Cash Flow Management

Low free cash flow relative to net income suggests potential challenges in cash management, which could impact the company's ability to fund operations and growth initiatives.

Free Cash Flow Growth

Negative free cash flow growth highlights issues in generating sufficient cash to cover expenses and invest in future growth, potentially affecting long-term financial health.

Cash Generation Ability

Weak cash generation relative to net income may limit the company's ability to reinvest in its business and maintain financial resilience, impacting long-term growth prospects.

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 shows a strong financial position with robust revenue growth and profitability. The balance sheet is stable, with manageable leverage and good equity levels. Cash flow management shows areas for 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.35B	1.27B	1.08B	907.76M	881.66M	761.48M
Gross Profit	678.20M	666.32M	624.60M	482.15M	470.51M	452.58M
EBITDA	735.30M	798.55M	682.45M	541.39M	350.71M	474.15M
Net Income	465.49M	451.09M	393.05M	259.78M	143.46M	306.67M
Balance Sheet
Total Assets	7.18B	7.50B	7.27B	6.67B	6.33B	5.06B
Cash, Cash Equivalents and Short-Term Investments	395.65M	840.88M	985.51M	803.85M	887.20M	865.06M
Total Debt	1.99B	2.24B	2.45B	2.45B	2.32B	1.77B
Total Liabilities	3.13B	3.68B	3.91B	3.77B	3.64B	2.38B
Stockholders Equity	4.05B	3.82B	3.37B	2.90B	2.69B	2.68B
Cash Flow
Free Cash Flow	316.36M	91.61M	126.79M	-97.98M	-438.95M	-448.61M
Operating Cash Flow	751.08M	677.38M	696.89M	507.46M	709.53M	16.76M
Investing Cash Flow	-451.12M	-585.57M	-569.42M	-593.76M	-1.15B	-471.75M
Financing Cash Flow	-328.73M	-236.42M	54.34M	9.62M	475.17M	871.71M

China Vocational Education Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.63
• 50DMA: Negative
• 100DMA: Negative
• 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:1756, the sentiment is Negative. The current price of 0.63 is below the 20-day moving average (MA) of 0.64, below the 50-day MA of 0.66, and below the 200-day MA of 0.64, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.14 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, 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	74 Outperform	HK$768.00M	1.53	11.13%	―	13.88%	1.52%
1851	73 Outperform	HK$1.53B	9.64	15.11%	―	1.40%	-15.24%
6913	72 Outperform	HK$393.53M	4.22	5.05%	11.00%	15.28%	-23.69%
2779	69 Neutral	HK$916.89M	2.28	9.80%	11.09%	0.87%	9.69%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1569	53 Neutral	HK$729.67M	-6.21	-2.11%	5.30%	-20.92%	-121.60%

China Vocational Education Holdings Limited Corporate Events

China Science and Education Industry Group Corrects Finance Expense and Related-Party Figures in 2025 Results

China Science and Education Industry Group Limited has issued a clarification regarding its previously published annual results for the year ended 31 August 2025 and its 2025 annual report, citing inadvertent clerical errors in certain finance-related disclosures. The company corrected the reported figures for finance expenses and net finance expenses under “Finance Expenses – Net,” as well as the amounts due to related parties under “Accruals and Other Payables and Amounts Due to Related Parties,” including detailed revisions to interest expenses on bank and shareholder borrowings, imputed interest on discounted long-term obligations, and related capitalised interest. The restated data, which adjusts the composition and totals of finance costs and related-party payables but does not introduce new financing arrangements, is aimed at improving the accuracy and transparency of the group’s financial reporting for stakeholders and aligning the published annual results and report with the corrected underlying figures.

The most recent analyst rating on (HK:1756) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on China Vocational Education Holdings Limited stock, see the HK:1756 Stock Forecast page.

China Science and Education Industry Group Sets January 2026 AGM to Approve Accounts, Board Changes and Share Mandate

China Science and Education Industry Group Limited has convened its annual general meeting for 23 January 2026 in Guangzhou, where shareholders will be asked to approve the audited consolidated financial statements for the year ended 31 August 2025, re-elect two executive directors and one independent non-executive director, and confirm the board’s authority to set directors’ remuneration and reappoint PricewaterhouseCoopers as the company’s independent auditor. The AGM will also consider granting the board a general mandate to issue, allot and deal in additional shares and related securities within defined limits, a move that would give management additional flexibility in future capital raising and corporate actions, potentially affecting the company’s capital structure and funding options for its ongoing education operations and expansion plans.

The most recent analyst rating on (HK:1756) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on China Vocational Education Holdings Limited stock, see the HK:1756 Stock Forecast page.

China Science and Education Industry Group Limited Reports 14% Revenue Growth Amid Rising Costs

China Science and Education Industry Group Limited reported its annual results for the year ending August 31, 2025, showing a revenue increase of 14% to RMB1,445.4 million, driven by higher student enrollment and tuition fees. Despite a rise in gross profit, the gross profit margin decreased by 2.5% due to increased costs, notably in staff expenses, impacting overall profitability. The company also saw a significant rise in selling expenses due to higher marketing costs, indicating a strategic push to enhance its market presence.

The most recent analyst rating on (HK:1756) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on China Vocational Education Holdings Limited stock, see the HK:1756 Stock Forecast page.

China Science and Education Industry Group Announces Key Management Changes

China Science and Education Industry Group Limited has announced the resignation of Mr. Cheung Kai Cheong Willie from his roles as company secretary, authorised representative, and process agent, effective November 24, 2025. The company has appointed Mr. Lin Zhixiang and Ms. Ma Wing Yee as joint company secretaries, with Ms. Ma also taking on the roles of authorised representative and process agent. These changes are part of the company’s strategic adjustments to enhance its corporate governance and operational efficiency.

The most recent analyst rating on (HK:1756) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on China Vocational Education Holdings Limited stock, see the HK:1756 Stock Forecast page.

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

China Science and Education Industry Group Limited has announced a board meeting scheduled for November 24, 2025. The meeting will address the approval of the company’s annual results for the financial year ended August 31, 2025, the consideration of a final dividend, and other relevant matters. This meeting could impact the company’s financial disclosures and dividend policy, potentially affecting investor sentiment and market positioning.

The most recent analyst rating on (HK:1756) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on China Vocational Education Holdings Limited stock, see the HK:1756 Stock Forecast page.

China Science and Education Industry Group Approves Construction Agreement

China Science and Education Industry Group Limited announced that the ordinary resolution regarding the 2025 Construction Services Framework Agreement with Guangdong Huali Construction Co., Ltd. was approved at the extraordinary general meeting. This agreement, which involves providing construction services for the company’s campuses in Jiangmen and Zengcheng, will be in effect until August 31, 2028. The approval signifies a strategic move to enhance the company’s infrastructure, potentially strengthening its market position in the education sector.

The most recent analyst rating on (HK:1756) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on China Vocational Education Holdings Limited stock, see the HK:1756 Stock Forecast page.