Bojun Education Company Limited (1758) AI Stock Analysis

• Market Cap: HK$87.60M
• Dividend Yield: N/A
• Average Volume (3M): 89.20K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.32
• Revenue Growth: -11.92%
• EPS Growth: -227.64%
• Country: HK
• Employees: 2,116
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): -0.15
• Shares Outstanding: 903,138,500
• 10 Day Avg. Volume: 44,000
• 30 Day Avg. Volume: 89,200
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 0.36
• P/FCF Ratio: -0.49
• 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: 41 Neutral
• Price Target: HK$0.09 ▼(-6.00% Downside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is driven primarily by weak financial performance (losses, very high leverage, and sharply deteriorated free cash flow). Technicals also remain bearish with the stock below key moving averages and negative MACD, while valuation is constrained by negative earnings and no stated dividend yield.

Positive Factors

Recurring tuition revenue

Tuition-based revenue recognized over academic periods creates a predictable, recurring cash inflow tied to enrollments and contracts. That steady operating cash profile supports planning and capacity utilization, providing durable revenue stability vs one-off sales cycles.

Solid unit economics (gross & EBITDA margins)

Healthy gross and EBITDA margins show the core school operations generate positive unit economics before SG&A and financing. This indicates the business can be profitable at scale and offers structural ability to restore net profitability if fixed costs and enrollment mix are managed.

Prior-year operating strength

Demonstrated positive operating margins in 2024 indicate management can run schools profitably. This track record suggests operational levers exist (pricing, cost control, utilization) that could be re-applied to recover earnings over the medium term.

Negative Factors

Extremely high leverage

Debt-to-equity near 28x leaves a very thin equity cushion and elevates refinancing and solvency risk. Large interest and principal obligations reduce financial flexibility, increasing the chance that operating setbacks translate into structural distress over coming months.

Severe cash flow deterioration

A collapse in operating cash flow and deeply negative free cash flow undermines the company's ability to service debt, invest in schools, or absorb enrollment volatility. Persistent negative cash conversion threatens solvency without external financing or material operational improvement.

Profitability decline and falling revenue

A material swing to negative operating profit and a large net loss, alongside declining revenue, signals structural demand, pricing, or cost problems. Continued deterioration erodes equity and makes it harder to fix leverage and cash issues without durable revenue recovery.

Bojun Education Company Limited Business Overview & Revenue Model

Company Description

Bojun Education Company Limited, an investment holding company, provides private education services in the People's Republic of China. It operates through two segments, Preschool Education and Degree Education. The company provides education services to kindergarten, as well as preschool, primary, middle, and high schools students. As of September 1, 2020, it operated 13 schools, which include 6 kindergartens, 1 primary and middle school, 2 middle schools, and 1 middle and high school in Chengdu, as well as 1 primary and middle school in Bazhong and Guangyuan, and 1 primary middle and high school in Ziyang. It also offers education consultancy and management, eco-tourism agriculture, and exhibition services. The company was founded in 2001 and is headquartered in Chengdu, the People's Republic of China.

How the Company Makes Money

Bojun Education generates revenue primarily by providing education services through schools it operates or manages. Its main revenue stream is tuition and related education fees paid by students (and/or their families) for enrollment in its programs, typically recognized over the relevant academic period as teaching services are delivered. The company may also earn additional income from ancillary charges connected to schooling (for example, services supporting students’ daily campus needs or educational activities) when such services are provided by the school operator. Beyond direct school operation, Bojun Education can also earn service fees where it provides school management or education-related support services to third parties, with revenue generally linked to contractual arrangements (e.g., fixed management fees and/or fees tied to student enrollment or performance). If the company has disclosed specific revenue segment breakdowns, named major partners, or material government subsidy contributions for the latest reporting period, that information is not available here and is therefore null.

Bojun Education Company Limited Financial Statement Overview

Summary

Financials appear highly stressed: 2025 saw a swing to negative operating profit and a large net loss (about -34% net margin), leverage is extremely high with debt-to-equity around 28x as equity eroded, and cash generation weakened sharply with deeply negative free cash flow (~-272M).

Income Statement

Revenue has been volatile, including a sharp rebound after a zero-revenue year, but the latest year (2025) shows an 8.5% decline. Profitability deteriorated meaningfully in 2025 with negative operating profit and a large net loss (net margin about -34%), despite still-positive gross margin (~38%) and positive EBITDA margin (~15%). The prior year (2024) showed much stronger operating performance (positive operating margin), so the recent reversal raises concerns around cost structure stability and earnings durability.

Balance Sheet

Leverage is very high and worsening: debt rose to ~1.95B while equity fell to ~69M in 2025, driving debt-to-equity to ~28x (up from ~7.6x in 2024). Returns on equity are deeply negative in the latest year, reflecting losses on a thin equity base. The balance sheet appears fragile, with limited equity cushion relative to the debt load, increasing refinancing and solvency risk if operating performance does not improve.

Cash Flow

Cash generation weakened sharply in 2025: operating cash flow dropped to ~5M (from ~175M in 2024) and free cash flow was deeply negative (~-272M), deteriorating materially versus prior periods. While there were years with positive operating cash flow, the latest year indicates weak cash conversion and heavy cash outflows, which is particularly concerning given the elevated leverage.

Breakdown	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	374.68M	429.76M	81.31M	33.60M	0.00
Gross Profit	144.68M	204.90M	11.92M	16.77M	-23.70M
EBITDA	54.89M	191.32M	-15.11M	-9.07M	-37.60M
Net Income	-129.62M	-39.57M	51.05M	-9.40M	-629.02M
Balance Sheet
Total Assets	3.90B	4.02B	4.06B	1.17B	1.20B
Cash, Cash Equivalents and Short-Term Investments	189.91M	225.80M	346.55M	155.07M	93.21M
Total Debt	1.95B	1.50B	1.51B	160.84M	832.73M
Total Liabilities	3.17B	3.50B	3.52B	989.84M	1.11B
Stockholders Equity	68.78M	198.41M	237.68M	179.26M	84.02M
Cash Flow
Free Cash Flow	-272.07M	-169.23M	7.88M	-114.06M	-72.18M
Operating Cash Flow	5.22M	175.25M	13.12M	25.86M	127.68M
Investing Cash Flow	-326.82M	-385.81M	346.54M	-53.74M	-472.41M
Financing Cash Flow	236.40M	89.91M	-168.54M	89.45M	20.84M

Bojun Education Company Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.10
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1758, the sentiment is Neutral. The current price of 0.1 is above the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.09, and below the 200-day MA of 0.13, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 73.89 is Negative, neither overbought nor oversold. The STOCH value of 103.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1758.

Bojun Education Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1752	69 Neutral	HK$168.50M	8.32	6.69%	6.52%	15.98%	75.61%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1449	49 Neutral	HK$176.67M	-2.26	-8.05%	―	6.79%	-470.68%
1775	49 Neutral	HK$234.53M	-3.58	-60.77%	―	22.97%	1.03%
1871	48 Neutral	HK$222.00M	-3.99	-5.86%	―	-10.07%	-39.58%
1758	41 Neutral	HK$87.60M	-1.03	-98.63%	―	-11.92%	-227.64%

Bojun Education Company Limited Corporate Events

Bojun Education Shareholders Unanimously Back All Resolutions at 2026 AGM

Bojun Education Company Limited, a Cayman Islands–incorporated education services provider listed in Hong Kong, operates within the broader Chinese education sector and serves investors through its listing on the Main Board of the Stock Exchange of Hong Kong. At its annual general meeting held on 22 January 2026, shareholders of Bojun Education unanimously approved all ordinary resolutions by poll, including the adoption of the audited financial statements for the year ended 31 August 2025, re-election of one executive, one non-executive and one independent non-executive director, authorization for the board to set directors’ and auditor’s remuneration, re-appointment of ZHONGHUI ANDA CPA Limited as auditor, and the renewal of general mandates to issue up to 20% new shares, repurchase up to 10% of its share capital, and extend the issue mandate by the amount of repurchased shares, thereby reinforcing board continuity, financial oversight, and capital management flexibility with strong shareholder support as all resolutions passed with 100% of votes cast in favour.

The most recent analyst rating on (HK:1758) stock is a Sell with a HK$0.16 price target. To see the full list of analyst forecasts on Bojun Education Company Limited stock, see the HK:1758 Stock Forecast page.

Bojun Education Sets January 2026 AGM to Renew Board and Seek Fresh Share Issuance Mandate

Bojun Education Company Limited has convened its annual general meeting for 22 January 2026 in Chengdu, where shareholders will review the audited financial statements for the year ended 31 August 2025, consider the re-election of three directors, authorise the board to set director remuneration, and reappoint ZHONGHUI ANDA CPA Limited as the company’s auditors. Shareholders will also vote on granting the board a general mandate to allot, issue and deal with additional shares, including the potential use of treasury shares, up to 20% of the company’s issued share capital, which would provide the company with additional financing and capital-raising flexibility within Hong Kong listing rules and may influence future dilution and governance dynamics for investors.

The most recent analyst rating on (HK:1758) stock is a Hold with a HK$0.13 price target. To see the full list of analyst forecasts on Bojun Education Company Limited stock, see the HK:1758 Stock Forecast page.