BExcellent Group Holdings Limited (1775) AI Stock Analysis

• Market Cap: HK$73.61M
• Dividend Yield: N/A
• Average Volume (3M): 78.93K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.02
• Revenue Growth: 20.36%
• EPS Growth: -38.36%
• Country: HK
• Employees: 240
• Sector: Technology
• Sector Strength: 89
• Industry: Education & Training Services
• EPS (TTM): -0.05
• Shares Outstanding: 507,632,000
• 10 Day Avg. Volume: 67,600
• 30 Day Avg. Volume: 78,933
• PEG Ratio: -0.77
• Price to Book (P/B): 2.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -16.41
• 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: 39 Underperform
• Price Target: HK$0.00 ▼(-100.00%Downside)

The stock's score is primarily impacted by poor financial performance and bearish technical indicators. The company's declining revenue and profitability, combined with negative market momentum, significantly weigh down the score. The lack of positive valuation metrics further contributes to the low overall score.

BExcellent Group Holdings Limited Business Overview & Revenue Model

Company Description

BExcellent Group Holdings Limited, an investment holding company, provides private supplementary secondary school education services in Hong Kong. The company operates private supplementary secondary school education services for students from secondary 1 to secondary 6 under the Beacon College brand; and private secondary day school services to secondary 4, 5, and 6 level students under the Beacon Day School brand. It also offers various ancillary education services and products, including mock examination, interview preparation, language and supplementary primary school education, and tutorial and consultation services under the Diverse Learning Club, Beacon Childhood, BeConfident, Glocal Education, and Mathgic brands; VIP self-study, as well as online course scheduling and management services; IELTS and foreign language courses under the Beacon BExcellent brand; other education services under Ascent Prep brand name; overseas study consultation services under GES brand; and online retail business under Beacon Living brand name. In addition, the company provides childhood education services; and information technology services, as well as operates an advertising agency. As of July 31, 2021, it operated 12 teaching centers with a total of 106 classrooms. The company was founded in 1989 and is headquartered in Kowloon, Hong Kong. BExcellent Group Holdings Limited is a subsidiary of Beacon Enterprise Limited.

How the Company Makes Money

BExcellent Group Holdings Limited generates revenue through multiple streams primarily centered around its education services. The core revenue stream comes from the fees collected for its private supplementary secondary school education services, where students enroll in courses designed to improve their academic results in various subjects. Additional income is derived from their private secondary day school services, which provide a full-time educational curriculum. Ancillary services such as mock exams, interview preparation, and study tours further contribute to the company's earnings. BExcellent Group also benefits from partnerships with educational institutions and organizations, which can enhance their service offerings and expand their customer base.

BExcellent Group Holdings Limited Financial Statement Overview

Summary

BExcellent Group Holdings Limited faces significant challenges with declining revenues and profitability pressures. The balance sheet shows increased leverage, although liquidity remains reasonable due to cash reserves. Cash flow management has been difficult, but there are signs of slight improvement. The education and training services industry may be facing headwinds, impacting the company's performance.

Income Statement

The company has experienced declining revenue over recent years, with a significant reduction from 2019 to 2024. Gross profit margins have also decreased, indicating increased cost pressures or reduced pricing power. The net profit margin is negative, reflecting ongoing losses. Although there has been an improvement in EBIT and EBITDA margins from 2023 to 2024, they remain negative, indicating operational challenges.

Balance Sheet

The debt-to-equity ratio has increased over time, indicating a higher reliance on debt financing. Stockholders' equity has decreased, suggesting potential financial instability. However, the company has maintained a relatively stable cash position, which provides some liquidity cushion. The equity ratio remains above 20%, indicating some level of financial stability.

Cash Flow

Operating cash flow has been inconsistent, with negative values in recent years, indicating potential cash flow issues. Free cash flow has shown slight improvement in 2024 compared to previous years. The company has managed to reduce capital expenditures, which is helping to preserve cash. The ratios of operating cash flow and free cash flow to net income are difficult to assess due to negative net income, but there is a trend towards improvement.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	177.24M	157.08M	131.16M	141.83M	177.40M	287.04M
Gross Profit	60.05M	70.02M	21.50M	15.88M	10.72M	62.03M
EBITDA	-14.19M	-2.48M	-10.31M	-481.00K	9.97M	28.11M
Net Income	-27.47M	-24.61M	-27.84M	-25.51M	-26.96M	-19.23M
Balance Sheet
Total Assets	188.72M	194.71M	189.70M	201.68M	183.32M	249.08M
Cash, Cash Equivalents and Short-Term Investments	85.59M	96.17M	92.38M	103.89M	81.15M	121.30M
Total Debt	93.77M	99.15M	82.97M	76.35M	24.67M	54.48M
Total Liabilities	142.90M	140.59M	111.20M	101.35M	57.33M	93.23M
Stockholders Equity	44.49M	52.46M	77.07M	101.93M	126.89M	157.70M
Cash Flow
Free Cash Flow	-4.82M	16.00K	-11.04M	-10.07M	-7.86M	29.44M
Operating Cash Flow	-7.97M	1.88M	-8.81M	-7.16M	13.38M	35.68M
Investing Cash Flow	489.00K	747.00K	-17.35M	-2.90M	-21.24M	-5.63M
Financing Cash Flow	-16.28M	-1.29M	-2.46M	33.07M	-32.37M	-54.66M

BExcellent Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1775, the sentiment is Negative. The current price of 0.14 is below the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.16, and below the 200-day MA of 0.17, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 9.94 is Positive, neither overbought nor oversold. The STOCH value of -15.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1775.

BExcellent Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$33.87B	5.80	-11.87%	1.82%	5.31%	-18.50%
8160	52 Neutral	HK$47.21M	―	-34.02%	―	-6.40%	-333.90%
8417	46 Neutral	HK$17.50M	―	-16.18%	―	3.61%	56.41%
1775	39 Underperform	HK$73.61M	―	-47.25%	―	20.36%	-38.36%
1598		HK$122.97M	3.14	4.79%	7.21%	―	―
8363		HK$68.57M	―		―	―	―

BExcellent Group Holdings Limited Corporate Events

BExcellent Group Holdings Limited Updates Remuneration Committee Terms

BExcellent Group Holdings Limited has announced the terms of reference for its Remuneration Committee, which was established by a resolution passed by the Board in 2018. The Committee will consist of at least three members, primarily independent non-executive directors, and is responsible for setting remuneration levels that attract and retain directors without excessive compensation. This move aims to ensure effective governance and oversight of executive compensation, aligning with industry best practices and potentially impacting the company’s operational efficiency and stakeholder confidence.

BExcellent Group Updates Audit Committee Terms

BExcellent Group Holdings Limited has announced updates to the terms of reference for its Audit Committee, which was initially established by a board resolution in June 2018. The committee, composed of non-executive directors, is tasked with overseeing the company’s financial reporting and auditing processes, ensuring compliance with relevant regulations. The announcement highlights the committee’s authority to seek information from employees and professional advisers, reflecting the company’s commitment to maintaining robust governance practices.

BExcellent Group Holdings Limited Updates Nomination Committee Terms

BExcellent Group Holdings Limited has announced updates to the terms of reference for its Nomination Committee. The committee is tasked with overseeing the nomination process for directors, ensuring a diverse and independent board composition. The changes include provisions for gender diversity and maintaining a majority of independent non-executive directors. These updates aim to strengthen the governance framework of the company, enhancing its operational transparency and accountability to stakeholders.