JH Educational Technology INC. (1935) AI Stock Analysis

• Market Cap: HK$1.33B
• Dividend Yield: N/A
• Average Volume (3M): 121.33K
• Price to Earnings (P/E): 3.9
• Beta (1Y): 0.29
• Revenue Growth: 10.10%
• EPS Growth: -21.18%
• Country: HK
• Employees: 2,419
• Sector: Technology
• Sector Strength: 81
• Industry: Education & Training Services
• EPS (TTM): 0.21
• Shares Outstanding: 1,600,830,000
• 10 Day Avg. Volume: 260,400
• 30 Day Avg. Volume: 121,333
• PEG Ratio: -0.13
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.32
• 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: 76 Outperform
• Price Target: HK$1.00 ▲(20.48%Upside)

JH Educational Technology INC. achieves a solid score due to its strong financial performance and attractive valuation, although recent cash flow challenges and weak technical momentum are areas of concern. The stock's low P/E ratio suggests it may be undervalued, which supports a higher score despite the absence of earnings call data.

JH Educational Technology INC. Business Overview & Revenue Model

Company Description

JH Educational Technology INC., an investment holding company, provides higher and secondary education, and related management services in the People's Republic of China. It operates and controls three schools, including Changzheng College, a junior college located in Hangzhou, Zhejiang Province that offers formal junior college education in 38 majors across eight key subject categories; College of Economics and Business, an undergraduate college situated in Zhengzhou, Henan Province, which provides formal undergraduate education and junior college education covering six key subject areas comprising management, economics, engineering, arts, literature, and law; and Yueqing Jingyi Secondary School located in Wenzhou, Zhejiang Province that offers non-compulsory private education for high school students. The company also provides technical and management consultancy, and training services. JH Educational Technology INC. was founded in 1997 and is headquartered in Yueqing, the People's Republic of China.

How the Company Makes Money

JH Educational Technology INC. generates revenue primarily through the sale of its educational software and digital products to schools, universities, and individual consumers. The company also earns money through subscription-based services for its online learning platforms, offering premium features and content access. Furthermore, JH Educational Technology INC. has established significant partnerships with educational institutions and technology firms, facilitating collaborative projects and licensing agreements that contribute to its earnings. Key revenue streams include direct sales, subscription fees, and licensing deals.

JH Educational Technology INC. Financial Statement Overview

Summary

JH Educational Technology INC. demonstrates strong financial performance with consistent revenue growth and profitability, supported by a solid balance sheet with low leverage. However, recent declines in net income and free cash flow highlight areas for improvement in cash management and reinvestment strategies to sustain growth.

Income Statement

The company has shown consistent revenue growth over the years, with a revenue increase from 561 million in 2020 to 980 million in 2024. Gross profit and net profit margins are strong, with the net profit margin improving to 31.9% in 2024 from 29.7% in 2020. EBIT and EBITDA margins also indicate robust operational efficiency. However, net income decreased in 2024 compared to 2023, which might slightly impact profitability perception.

Balance Sheet

The balance sheet is strong, with a healthy equity ratio of 64% in 2024, indicating financial stability. The debt-to-equity ratio is very low, reflecting minimal leverage and reduced financial risk. However, the high level of cash and equivalents relative to debt suggests an underutilization of resources that could be invested for growth.

Cash Flow

The company's free cash flow has been positive, indicating good cash generation capabilities. However, there is a notable decline in free cash flow from 657 million in 2023 to zero in 2024. The operating cash flow to net income ratio was strong in prior years but is unavailable for 2024, pointing to potential cash flow management issues.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
980.84M	873.35M	819.36M	684.60M	561.31M
	Gross Profit
627.23M	567.97M	514.08M	420.68M	334.33M
	EBIT
490.63M	466.68M	409.90M	364.70M	287.11M
	EBITDA
544.12M	576.18M	466.89M	413.74M	334.07M
	Net Income Common Stockholders
312.82M	388.20M	366.73M	326.04M	265.93M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.08B	2.10B	1.51B	1.28B	1.15B
	Total Assets
4.71B	4.16B	3.53B	3.01B	2.65B
	Total Debt
249.00K	647.00K	234.00K	568.00K	451.00K
	Net Debt
-1.60B	-2.00B	-1.50B	-1.23B	-1.15B
	Total Liabilities
865.23M	760.59M	606.19M	578.37M	463.55M
	Stockholders Equity
3.01B	2.70B	2.33B	1.95B	1.78B
Cash Flow		Free Cash Flow
55.40M	657.20M	461.35M	236.67M	328.15M
	Operating Cash Flow
659.00M	733.74M	643.54M	522.34M	441.47M
	Investing Cash Flow
-1.06B	-218.41M	-379.86M	-288.98M	310.01M
	Financing Cash Flow
-420.00K	-22.02M	-948.00K	-150.19M	-110.94M

JH Educational Technology INC. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1935, the sentiment is Positive. The current price of 0.83 is above the 20-day moving average (MA) of 0.81, above the 50-day MA of 0.79, and above the 200-day MA of 0.80, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.15 is Neutral, neither overbought nor oversold. The STOCH value of 82.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1935.

JH Educational Technology INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1935	76 Outperform	HK$1.33B	3.92	10.97%	―	10.10%	-21.18%
1525	73 Outperform	HK$1.22B	4.83	9.98%	6.76%	2.12%	-23.09%
2175	64 Neutral	HK$1.32B	12.07	5.09%	―	-0.48%	-26.92%
Sector *	62 Neutral	$11.89B	9.95	-7.22%	4.98%	7.31%	-8.91%

JH Educational Technology INC. Corporate Events

JH Educational Technology INC. Announces Successful AGM with All Resolutions Passed

JH Educational Technology INC. successfully held its Annual General Meeting on May 16, 2025, where all proposed resolutions were passed by shareholders. Key resolutions included the adoption of the audited financial statements for 2024, re-election of directors, re-appointment of Ernst & Young as auditors, and granting of mandates to the board for securities transactions. The approval of these resolutions reflects strong shareholder support and positions the company for continued operational stability and strategic growth.

JH Educational Technology INC. Announces 2025 AGM and Key Resolutions

JH Educational Technology INC. has announced its upcoming Annual General Meeting (AGM) scheduled for May 16, 2025, in Zhejiang, PRC. Key agenda items include the adoption of the company’s audited financial statements for 2024, re-election of directors, and re-appointment of Ernst & Young as auditors. Additionally, the company seeks approval to authorize directors to manage share allotments and related financial instruments, potentially impacting its capital structure and shareholder value.

JH Educational Technology INC. Reports 2024 Financial Results and Strategic Amendments

JH Educational Technology INC. announced its annual financial results for the year ending December 31, 2024, revealing a 12% increase in revenue to RMB 980,841,000, and a 10% rise in gross profit to RMB 627,225,000. However, the company experienced a decline in profit, with a 13% decrease in profit for the year and a 19% drop in profit attributable to owners, attributed to increased administrative and other expenses. The proposed amendments to the Articles of Association indicate a strategic move to adapt to changing market conditions and improve governance.

JH Educational Technology INC. Forms Nomination Committee to Enhance Governance

JH Educational Technology INC. has established a Nomination Committee as per a resolution passed by its board of directors. This committee will consist of at least three members, primarily independent non-executive directors, with a requirement for gender diversity. The committee is tasked with overseeing nominations and ensuring compliance with the Hong Kong Stock Exchange’s listing rules, potentially impacting the company’s governance and stakeholder confidence.