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

• Market Cap: HK$270.81M
• Dividend Yield: 44.35%
• Average Volume (3M): 3.10M
• Price to Earnings (P/E): 2.5
• Beta (1Y): 0.14
• Revenue Growth: -41.24%
• EPS Growth: -36.17%
• Country: HK
• Employees: 131
• Sector: Consumer Cyclical
• Sector Strength: 72
• Industry: Education & Training Services
• EPS (TTM): 0.03
• Shares Outstanding: 2,178,154,000
• 10 Day Avg. Volume: 6,356,600
• 30 Day Avg. Volume: 3,097,466
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily influenced by attractive valuation metrics, including a low P/E ratio and high dividend yield. However, significant financial performance concerns, such as declining revenue and cash flow issues, limit the score's upside. Technical analysis indicates bullish momentum, but potential overbought conditions should be monitored closely.

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

Company Description

Wisdom Education International Holdings Co. Ltd. (6068) is a leading education services provider in China, primarily engaged in the operation of private primary and secondary schools. The company focuses on delivering high-quality education services, with a curriculum that integrates both traditional and innovative teaching methods. It operates a network of schools across various provinces in China, catering to the educational needs of students from kindergarten to high school.

How the Company Makes Money

Wisdom Education International Holdings Co. Ltd. generates revenue primarily through tuition and boarding fees collected from students enrolled in its schools. The company also derives income from ancillary services such as school uniforms, educational materials, and extracurricular activities. Additionally, Wisdom Education may engage in partnerships with local governments and educational institutions to expand its offerings and enhance its educational services. The company benefits from China's growing demand for quality private education, which supports its revenue growth and expansion efforts.

Wisdom Education International Holdings Co. Ltd. Financial Statement Overview

Summary

Wisdom Education faces declining revenue and cash flow challenges, affecting its ability to sustain operations long-term. While profit margins have improved in 2024, the lack of EBIT and reducing asset base highlight operational and financial instability concerns.

Income Statement

The company's revenues have been declining, with a significant drop from 2021 to 2024. The net profit margin has improved in 2024 due to cost management, despite falling revenue. However, the absence of EBIT in 2024 indicates potential operational challenges.

Balance Sheet

The company exhibits a moderate debt-to-equity ratio, indicating manageable leverage. However, the declining total assets and shareholder equity over the years raise concerns about long-term financial stability.

Cash Flow

Free cash flow is negative in recent years, suggesting liquidity concerns. The decline in operating cash flow further exacerbates potential cash constraints, despite previous years of strong cash flow generation.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	180.99M	319.27M	277.59M	2.26B	1.79B
Gross Profit	72.30M	170.15M	153.37M	1.00B	867.94M
EBITDA	123.36M	140.93M	112.79M	852.42M	735.89M
Net Income	96.43M	163.12M	95.09M	-2.12B	511.87M
Balance Sheet
Total Assets	1.28B	1.44B	1.48B	1.41B	7.92B
Cash, Cash Equivalents and Short-Term Investments	47.02M	350.35M	453.86M	570.98M	1.50B
Total Debt	277.64M	293.63M	375.05M	179.74M	3.32B
Total Liabilities	674.90M	827.33M	1.02B	826.87M	4.83B
Stockholders Equity	601.43M	612.21M	451.60M	578.65M	2.96B
Cash Flow
Free Cash Flow	-16.05M	12.05M	31.93M	-423.77M	-58.21M
Operating Cash Flow	-13.42M	209.21M	32.70M	1.00B	883.38M
Investing Cash Flow	-7.48M	-212.84M	34.79M	-2.28B	-644.42M
Financing Cash Flow	-174.18M	-85.79M	-144.13M	574.56M	227.21M

Wisdom Education International Holdings Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.11
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 0.11 is below the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.11, and below the 200-day MA of 0.13, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.29 is Neutral, neither overbought nor oversold. The STOCH value of 35.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
1851	81 Outperform	HK$820.00M	4.94	17.84%	―	2.89%	1.19%
1756	72 Outperform	HK$756.00M	1.50	12.24%	―	13.37%	15.55%
6913	71 Outperform	HK$400.20M	4.06	5.50%	4.26%	20.53%	-21.74%
6068	63 Neutral	HK$270.81M	2.49	16.80%	44.35%	-41.24%	-36.17%
Sector *	56 Neutral	HK$24.71B	3.78	-3.23%	5.89%	0.25%	-59.97%
1569	56 Neutral	HK$691.71M	546.67	0.02%	6.28%	-18.89%	-99.23%

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.