Wisdom Education International Holdings Co. Ltd. (6068) AI Stock Analysis

• Market Cap: HK$190.65M
• Dividend Yield: N/A
• Average Volume (3M): 1.37M
• Price to Earnings (P/E): 4.6
• Beta (1Y): 0.74
• Revenue Growth: -27.76%
• EPS Growth: -60.29%
• Country: HK
• Employees: 131
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): >-0.01
• Shares Outstanding: 2,178,154,000
• 10 Day Avg. Volume: 1,942,000
• 30 Day Avg. Volume: 1,369,000
• PEG Ratio: -0.13
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 1.96
• P/FCF Ratio: 84.63
• 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: 50 Neutral
• Price Target: HK$0.09 ▼(-2.22% Downside)

The overall stock score is primarily impacted by financial performance challenges, including declining revenue and cash flow issues. Technical analysis indicates a bearish trend, further weighing on the score. The stock's low P/E ratio suggests it may be undervalued, providing some support to the overall score.

Positive Factors

Leverage Management

Improved leverage management reduces financial risk and enhances the company's ability to invest in growth opportunities.

Gross Profit Margin Stability

Stable gross profit margins indicate effective cost management, supporting long-term profitability despite revenue challenges.

EBIT and EBITDA Margins

Strong EBIT and EBITDA margins reflect operational efficiency, providing a buffer against revenue fluctuations and supporting long-term viability.

Negative Factors

Revenue Decline

Declining revenue growth poses a threat to market position and financial health, necessitating strategic adjustments to reverse the trend.

Cash Flow Challenges

Negative cash flow growth limits the company's ability to fund operations and invest in future growth, impacting long-term sustainability.

Profitability Decline

Reduced profitability weakens financial resilience and may hinder the company's ability to compete and invest in strategic initiatives.

Wisdom Education International Holdings Co. Ltd. Business Overview & Revenue Model

Company Description

Wisdom Education International Holdings Co. Ltd. (6068) is an education services provider based in China, specializing in offering a range of educational services and products. The company primarily operates in the vocational education sector, providing training and educational resources aimed at enhancing professional skills among students and working adults. Its core offerings include various vocational training programs, language training, and education consulting services, which cater to the growing demand for skilled labor in the Chinese market.

How the Company Makes Money

Wisdom Education generates revenue through multiple streams, primarily from tuition fees collected for its vocational training and language programs. The company also earns income from educational consulting services offered to institutions and organizations looking to enhance their educational frameworks. Additionally, it may receive government subsidies and grants aimed at supporting vocational education initiatives. Strategic partnerships with local educational institutions and businesses further strengthen its revenue model by creating collaborative programs that attract more students and expand its reach in the market.

Wisdom Education International Holdings Co. Ltd. Financial Statement Overview

Summary

The company faces challenges with declining revenue and profitability, as well as cash flow management issues. While leverage has improved, the company needs to address its cash flow and profitability to ensure long-term stability.

Income Statement

The company has experienced a significant decline in revenue growth, with a -17.28% decrease in the latest year. Gross profit margin remains relatively stable at 45.98%, but net profit margin has decreased to 29.28%, indicating reduced profitability. The EBIT and EBITDA margins are strong at 45.14% and 49.95%, respectively, but the overall revenue decline is a concern.

Balance Sheet

The debt-to-equity ratio has improved to 0.38, indicating better leverage management. However, the return on equity has decreased to 5.91%, reflecting lower profitability. The equity ratio remains stable, suggesting a balanced asset structure. The company has managed to reduce its debt levels, which is a positive sign.

Cash Flow

The free cash flow growth rate is significantly negative at -74.74%, and the operating cash flow to net income ratio is low at 0.02, indicating cash flow challenges. The free cash flow to net income ratio is 0.30, showing limited cash generation relative to net income. Overall, cash flow management appears to be a critical area for improvement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	141.47M	141.47M	180.99M	319.27M	277.59M	2.26B
Gross Profit	65.05M	65.05M	72.30M	170.15M	153.37M	1.00B
EBITDA	70.66M	70.66M	123.36M	140.93M	112.79M	852.42M
Net Income	37.21M	41.42M	96.43M	163.12M	95.09M	-2.12B
Balance Sheet
Total Assets	1.38B	1.38B	1.28B	1.44B	1.48B	1.41B
Cash, Cash Equivalents and Short-Term Investments	466.29M	466.29M	47.02M	350.35M	453.86M	570.98M
Total Debt	268.41M	268.41M	277.64M	293.63M	375.05M	179.74M
Total Liabilities	678.54M	678.54M	674.90M	827.33M	1.02B	826.87M
Stockholders Equity	700.24M	700.24M	601.43M	612.21M	451.60M	578.65M
Cash Flow
Free Cash Flow	-592.36K	3.28M	-16.05M	12.05M	31.93M	-423.77M
Operating Cash Flow	6.47M	10.95M	-13.42M	209.21M	32.70M	1.00B
Investing Cash Flow	103.59M	96.99M	-7.48M	-212.84M	34.79M	-2.28B
Financing Cash Flow	-45.23M	-44.86M	-174.18M	-85.79M	-144.13M	574.56M

Wisdom Education International Holdings Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6068, the sentiment is Negative. The current price of 0.09 is below the 20-day moving average (MA) of 0.09, below the 50-day MA of 0.11, and below the 200-day MA of 0.12, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 38.56 is Neutral, neither overbought nor oversold. The STOCH value of 31.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6068.

Wisdom Education International Holdings Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1756	74 Outperform	HK$792.00M	1.60	11.13%	―	13.88%	1.52%
1851	72 Outperform	HK$1.22B	7.68	15.11%	―	1.40%	-15.24%
6913	72 Outperform	HK$393.53M	4.22	5.05%	11.19%	15.28%	-23.69%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1569	53 Neutral	HK$792.93M	-6.79	-2.11%	5.21%	-20.92%	-121.60%
6068	50 Neutral	HK$190.65M	4.61	6.07%	―	-27.76%	-60.29%

Wisdom Education International Holdings Co. Ltd. Corporate Events

Wisdom Education Expands Financial Portfolio with New Loan Agreements

Wisdom Education International Holdings Co. Ltd., through its wholly-owned subsidiary Ruixing Logistics, has entered into several loan agreements with different companies, including Zhongyou, Junzhuo, Duzheng, and Jinmuli. These loans, totaling RMB90,280,000, are funded by the company’s internal resources and are set for a one-year term with varying interest rates. This strategic move indicates Wisdom Education’s active role in financial lending, potentially enhancing its financial portfolio and influence in the market.

Wisdom Education Completes Internal Control Review on Connected Transactions

Wisdom Education International Holdings Co. Ltd. has completed an internal control review, focusing on the management of connected transactions and compliance with Chapter 14A of the Listing Rules. The review, conducted by a special committee, assessed the company’s internal control systems and identified measures to ensure fair and transparent connected transactions. The company has established a comprehensive Connected Transaction Management Policy, which includes a framework for identifying and managing connected persons, ensuring compliance, and maintaining a connected persons register.