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

• Market Cap: HK$4.92B
• Dividend Yield: 4.88%
• Average Volume (3M): 515.80K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.22
• Revenue Growth: 7.87%
• EPS Growth: 7.13%
• Country: HK
• Employees: 5,100
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Education & Training Services
• EPS (TTM): 0.72
• Shares Outstanding: 1,200,000,000
• 10 Day Avg. Volume: 486,100
• 30 Day Avg. Volume: 515,800
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: HK$4.50 ▲(10.29%Upside)

The strong financial performance, characterized by robust revenue growth and profitability, is a major strength for the stock. The valuation is attractive with a low P/E ratio and high dividend yield, appealing to value and income investors. Technical analysis indicates a neutral sentiment with no strong market momentum.

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

Company Description

China Chunlai Education Group Co., Ltd. is a private higher education service provider in China. The company primarily focuses on offering undergraduate and junior college education through its network of educational institutions. It operates several colleges and universities, providing a range of programs and courses across various disciplines. Chunlai Education aims to deliver high-quality education to students in China, supporting their academic and professional development.

How the Company Makes Money

China Chunlai Education Group Co., Ltd. generates revenue primarily through tuition fees collected from students enrolled in its educational programs. The company operates multiple colleges and universities where students pay for courses and other academic services. Additionally, ancillary services such as on-campus accommodation and other educational services contribute to its earnings. Chunlai Education benefits from China's growing demand for higher education, which drives enrollment and supports its financial performance. There are no significant partnerships or external factors noted contributing to its earnings beyond its core educational services.

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
	EBIT
882.63M	812.72M	691.25M	458.60M	240.53M
	EBITDA
1.15B	1.04B	907.77M	619.21M	363.78M
	Net Income Common Stockholders
778.17M	684.39M	552.26M	606.92M	141.33M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
675.90M	789.72M	630.93M	399.60M	204.01M
	Total Assets
7.25B	6.46B	5.87B	5.05B	3.75B
	Total Debt
2.25B	2.17B	2.39B	2.37B	1.79B
	Net Debt
1.57B	1.38B	1.76B	1.97B	1.59B
	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: Negative
• Last Price: 4.08
• 50DMA: Negative
• 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:1969, the sentiment is Negative. The current price of 4.08 is below the 20-day moving average (MA) of 4.16, below the 50-day MA of 4.18, and below the 200-day MA of 4.26, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 37.48 is Neutral, neither overbought nor oversold. The STOCH value of 26.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
0382	75 Outperform	HK$1.76B	2.55	15.41%	13.79%	9.66%	-8.34%
1969	73 Outperform	HK$4.92B	5.69	20.65%	4.88%	7.87%	7.13%
0839	72 Outperform	HK$7.08B	20.30	1.91%	30.86%	12.33%	-80.20%
2779	72 Outperform	HK$965.15M	2.70	9.21%	10.53%	-1.33%	4.95%
Sector *	62 Neutral	$6.76B	11.07	2.80%	6.34%	2.68%	-24.87%

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.