JH Educational Technology INC. (1935) AI Stock Analysis

• Market Cap: HK$1.42B
• Dividend Yield: N/A
• Average Volume (3M): 250.60K
• Price to Earnings (P/E): 4.5
• Beta (1Y): 0.27
• Revenue Growth: 4.79%
• EPS Growth: -36.61%
• Country: HK
• Employees: 2,419
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.16
• Shares Outstanding: 1,600,830,000
• 10 Day Avg. Volume: 232,600
• 30 Day Avg. Volume: 250,600
• PEG Ratio: -0.22
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 1.20
• P/FCF Ratio: 2.17
• 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: 66 Neutral
• Price Target: HK$0.96 ▲(5.60% Upside)

The overall stock score of 66 reflects strong financial performance and attractive valuation, offset by bearish technical indicators. The company's robust financial health and low P/E ratio suggest potential for future growth, but current market momentum is negative, indicating caution.

Positive Factors

Strong balance sheet

Low leverage and a high equity ratio provide durable financial flexibility, enabling sustained R&D, product rollouts and contract execution. A strong capital structure reduces refinancing risk, supports large institutional sales and helps absorb enrollment or budgeting cycles in education markets.

Recurring, diversified revenue streams

A mix of licensing, subscriptions and hardware sales plus government and institution partnerships creates predictable recurring revenue and reduces single-product exposure. Diversification supports customer stickiness, smoother cash flows and long-term contract opportunities in education budgets.

Robust margins and operational performance

Healthy gross and operating margins indicate scalable software economics and effective cost management, allowing reinvestment in product and sales. Sustained margin strength enhances resilience to pricing pressure and funds long-term initiatives like platform improvements and service expansion.

Negative Factors

Negative EPS growth

A sharp negative EPS growth rate signals the company is generating lower earnings per share, which can stem from margin compression, increased costs, or dilution. Persisting EPS declines weaken shareholder returns and may constrain capital allocation for strategic investments.

Fluctuating and declining free cash flow

Variable and declining free cash flow reduces the firm's ability to fund capex, R&D, or acquisitions internally. This instability raises reliance on external financing or slower investment pacing, which can impair long-term product development and competitive positioning in edtech.

Recent net income decline

A recent dip in net income despite revenue gains indicates margin pressure or one-off costs. If persistent, this trend can erode retained earnings, limit reinvestment capacity and undermine the company’s ability to sustain pricing, sales investments, or expand margins over time.

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 through multiple streams. The primary source of income comes from the sale of its educational software and learning management systems, which are typically sold through licensing agreements to schools and educational institutions. The company also offers subscription-based models for its online platforms, allowing users access to a range of educational resources for a recurring fee. In addition to software sales, JH Educational Technology INC. earns revenue from hardware sales, including interactive whiteboards and classroom technology tools. Significant partnerships with educational institutions and government organizations also contribute to its earnings, as the company often collaborates on large-scale educational projects and initiatives, securing funding and grants that further enhance its revenue potential.

JH Educational Technology INC. Financial Statement Overview

Summary

JH Educational Technology INC. exhibits strong financial performance with robust revenue growth and profitability. The balance sheet is solid with low leverage and high equity, ensuring financial stability. However, fluctuations in free cash flow highlight the need for careful management of capital expenditures.

Income Statement

The company has demonstrated strong revenue growth, with a steady increase in total revenue over the years. Gross profit margin and net profit margin are robust, reflecting efficient cost management and profitability. The EBIT and EBITDA margins are also healthy, indicating strong operational performance. However, the slight decline in net income in the latest year suggests potential challenges in maintaining net profitability.

Balance Sheet

The balance sheet is strong, with a low debt-to-equity ratio indicating minimal leverage and financial risk. The company has a high equity ratio, showcasing a solid capital structure. Return on equity is impressive, reflecting effective use of shareholders' funds to generate profits. The increase in stockholders' equity over time further strengthens the company's financial position.

Cash Flow

The company has shown consistent operating cash flow, with a healthy operating cash flow to net income ratio. However, the free cash flow has fluctuated due to varying capital expenditures, impacting the free cash flow to net income ratio. The recent decline in free cash flow growth rate suggests potential challenges in cash generation, which could affect future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	997.99M	980.84M	873.35M	819.36M	684.60M	561.31M
Gross Profit	608.70M	627.23M	567.97M	514.08M	420.68M	334.33M
EBITDA	518.78M	544.12M	576.18M	483.94M	413.74M	334.07M
Net Income	283.11M	312.82M	388.20M	366.73M	326.04M	265.93M
Balance Sheet
Total Assets	4.96B	4.71B	4.16B	3.53B	3.01B	2.65B
Cash, Cash Equivalents and Short-Term Investments	1.41B	2.08B	2.10B	1.51B	1.28B	1.15B
Total Debt	599.95M	249.00K	647.00K	234.00K	568.00K	451.00K
Total Liabilities	814.59M	865.23M	760.59M	606.19M	578.37M	463.55M
Stockholders Equity	3.25B	3.01B	2.70B	2.33B	1.95B	1.78B
Cash Flow
Free Cash Flow	-104.54M	540.21M	657.20M	461.35M	236.67M	328.15M
Operating Cash Flow	499.68M	659.00M	733.74M	643.54M	522.34M	441.47M
Investing Cash Flow	-2.17B	-1.06B	-218.41M	-379.86M	-288.98M	310.01M
Financing Cash Flow	594.98M	-420.00K	-22.02M	-948.00K	-150.19M	-110.94M

JH Educational Technology INC. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.91
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1935, the sentiment is Negative. The current price of 0.91 is above the 20-day moving average (MA) of 0.87, above the 50-day MA of 0.85, and above the 200-day MA of 0.85, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.54 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
2001	81 Outperform	HK$1.76B	1.67	18.04%	10.76%	7.71%	11.65%
1525	68 Neutral	HK$1.06B	4.58	8.59%	6.83%	-0.56%	-26.67%
1935	66 Neutral	HK$1.42B	4.47	9.02%	―	4.79%	-36.61%
1765	66 Neutral	HK$1.60B	3.68	4.28%	―	6.04%	-36.91%
2175	64 Neutral	HK$1.44B	16.22	4.06%	―	-0.48%	-29.65%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

JH Educational Technology INC. Corporate Events

JH Educational Technology Appoints New Company Secretary and Hong Kong Process Agent

JH Educational Technology INC. announced the resignation of company secretary, authorised representative and Hong Kong process agent Ms. Sze Suet Ling, effective 23 January 2026, noting that she has no disagreement with the board and there are no matters requiring shareholder or exchange attention. The company has appointed Ms. Mak Po Man Cherie, a seasoned governance, accounting and compliance professional with over 20 years’ experience and multiple professional qualifications, to assume all three roles on the same date, a move that strengthens its corporate governance and regulatory compliance framework as it continues to operate as a Hong Kong-listed Mainland-focused educational technology company.

The most recent analyst rating on (HK:1935) stock is a Hold with a HK$0.95 price target. To see the full list of analyst forecasts on JH Educational Technology INC. stock, see the HK:1935 Stock Forecast page.