China Chunlai Education Group Co., Ltd. (1969) AI Stock Analysis

• Market Cap: HK$5.70B
• Dividend Yield: 4.21%
• Average Volume (3M): 4.07M
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.24
• Revenue Growth: 7.87%
• EPS Growth: 7.13%
• Country: HK
• Employees: 5,100
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Education & Training Services
• EPS (TTM): 0.72
• Shares Outstanding: 1,200,000,000
• 10 Day Avg. Volume: 11,167,400
• 30 Day Avg. Volume: 4,066,433
• PEG Ratio: 0.49
• Price to Book (P/B): 2.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.88
• 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: HK$4.50
• Price Target Upside: -4.86% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: HK$6.00 ▲(26.85%Upside)

China Chunlai Education Group Co., Ltd. scores well due to its strong financial performance and attractive valuation. The technical analysis indicates a strong trend, although caution is advised due to overbought conditions. The absence of recent earnings call data and notable corporate events leaves the focus on fundamental and technical aspects.

China Chunlai Education Group Co., Ltd. Business Overview & Revenue Model

Company Description

China Chunlai Education Group Co., Ltd., together with its subsidiaries, provides private higher education services in the People's Republic of China. It operates three colleges in Henan Province; two college in Hubei Province; and one college in Jiangsu Province. The company was founded in 2004 and is headquartered in Shangqiu, the People's Republic of China. China Chunlai Education Group Co., Ltd. is a subsidiary of Chunlai Investment Co., Limited.

How the Company Makes Money

China Chunlai Education Group Co., Ltd. generates revenue primarily through tuition fees collected from its students enrolled in various undergraduate and junior college programs. The company also earns income from boarding fees for students residing in on-campus accommodations. Additionally, Chunlai Education may engage in partnerships with educational institutions and organizations to enhance its curriculum and expand its educational services, although specific partnerships contributing to revenue are not detailed. The company's financial performance is further supported by its ability to maintain high enrollment numbers and expand its educational facilities and program offerings.

China Chunlai Education Group Co., Ltd. Financial Statement Overview

Summary

China Chunlai Education Group Co., Ltd. demonstrates strong financial performance with significant revenue growth and high profitability margins. The balance sheet shows moderate leverage and a strong equity base, while cash flow generation is solid, with room for improvement in free cash flow conversion.

Income Statement

The company has demonstrated strong revenue growth with a 8.9% increase from the previous year, indicating a solid growth trajectory. The gross profit margin stands at 58.6% and the net profit margin at 47.7%, both reflecting strong profitability. The EBIT margin is 54.1%, and the EBITDA margin is 70.2%, showcasing efficient operations and cost management.

Balance Sheet

The balance sheet is stable with a debt-to-equity ratio of 0.58, indicating moderate leverage. The return on equity (ROE) is a robust 20.0%, signifying effective use of equity capital. The equity ratio is 53.6%, suggesting a strong equity base relative to total assets, which provides financial stability.

Cash Flow

The company's free cash flow grew by 8.7%, reflecting positive cash generation trends. The operating cash flow to net income ratio of 1.3 indicates strong cash flow relative to earnings. However, the free cash flow to net income ratio is 0.73, suggesting room for improvement in converting earnings into free cash flow.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	1.63B	1.50B	1.31B	1.04B	702.49M
Gross Profit	955.50M	890.05M	826.70M	631.44M	369.58M
EBITDA	1.15B	1.04B	907.77M	619.21M	363.78M
Net Income	778.17M	684.39M	552.26M	606.92M	141.33M
Balance Sheet
Total Assets	7.25B	6.46B	5.87B	5.05B	3.75B
Cash, Cash Equivalents and Short-Term Investments	675.90M	789.72M	630.93M	399.60M	204.01M
Total Debt	2.25B	2.17B	2.39B	2.37B	1.79B
Total Liabilities	3.37B	3.18B	3.25B	2.99B	2.31B
Stockholders Equity	3.88B	3.28B	2.62B	2.06B	1.44B
Cash Flow
Free Cash Flow	570.92M	525.29M	843.43M	191.87M	-519.58M
Operating Cash Flow	1.03B	1.07B	1.16B	741.60M	8.99M
Investing Cash Flow	-953.53M	-531.69M	-814.38M	-897.98M	-448.16M
Financing Cash Flow	-194.51M	-383.75M	-114.34M	351.97M	169.56M

China Chunlai Education Group Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1969, the sentiment is Positive. The current price of 4.73 is above the 20-day moving average (MA) of 4.19, above the 50-day MA of 4.20, and above the 200-day MA of 4.25, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 90.40 is Negative, neither overbought nor oversold. The STOCH value of 73.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1969.

China Chunlai Education Group Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1969	79 Outperform	HK$5.70B	6.56	20.65%	4.21%	7.87%	7.13%
Sector *	57 Neutral	HK$24.54B	3.87	-2.03%	6.53%	-0.31%	-67.70%
9CK		€341.39M	3.17	15.40%	5.10%	―	―
2001	80 Outperform	HK$2.05B	2.54	18.95%	0.49%	9.07%	5.93%
2779	79 Outperform	HK$981.24M	2.83	9.21%	10.03%	-1.33%	4.95%
0382	75 Outperform	HK$1.97B	2.86	15.41%	11.98%	9.66%	-8.34%
0839	75 Outperform	HK$8.37B	24.00	1.91%	10.64%	12.33%	-80.20%

China Chunlai Education Group Co., Ltd. Corporate Events

China Chunlai Education Reports Revenue and Profit Growth in Interim Results

China Chunlai Education Group Co., Ltd. announced its unaudited consolidated interim results for the six months ended 28 February 2025, showing a 9.4% increase in revenue to RMB 890,720,000 and a 5.8% rise in profit for the period to RMB 406,563,000. The company uses an adjusted net profit measure to provide additional insights into its financial performance, excluding certain items like share-based compensation and foreign exchange gains or losses, which resulted in a 4.3% increase in adjusted net profit.

China Chunlai Education Updates Nomination Committee Terms

China Chunlai Education Group Co., Ltd. has updated the terms of reference for its Nomination Committee, which is responsible for identifying and recommending candidates for the board of directors, overseeing board performance evaluations, and developing nomination guidelines. This update, approved by the board, ensures compliance with applicable laws and regulations, potentially enhancing the company’s governance and strategic decision-making processes.

China Chunlai Education Group Announces Upcoming Board Meeting for Interim Results

China Chunlai Education Group Co., Ltd. has announced a board meeting scheduled for April 29, 2025, to review and approve the unaudited consolidated interim results for the six months ending February 28, 2025. The meeting will also consider the payment of an interim dividend, which could impact the company’s financial strategy and shareholder returns.