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

• Market Cap: HK$153.82M
• Dividend Yield: N/A
• Average Volume (3M): 1.37M
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.59
• 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: -0.12
• 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: 52 Neutral
• Price Target: HK$0.08 ▼(-14.44% Downside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is held back primarily by weak financial performance—especially severe free cash flow deterioration and poor cash conversion—alongside a technically bearish trend (price below major moving averages). These risks are partially offset by a low valuation (P/E 3.979), which supports the overall score but does not outweigh the cash flow and trend concerns.

Positive Factors

High EBIT/EBITDA Margins

Sustainably high EBIT/EBITDA margins indicate structural operating efficiency in core vocational and training services. Such margin headroom supports profitability through enrollment cycles, funds reinvestment in curriculum and digital offerings, and cushions the business against moderate revenue volatility over months.

Improved Leverage

Lower leverage reduces financial risk and interest burden, improving balance sheet flexibility. With a 0.38 D/E the company has more capacity to fund strategic initiatives or withstand enrollment softness without urgent refinancing, strengthening resilience across a multi-month horizon.

Diversified Revenue Streams

Multiple income sources—tuition, consulting, subsidies and institutional partnerships—reduce single-product exposure and support steady demand from students and corporate clients. Structural vocational-skills demand in China and partner distribution help maintain enrolment and program uptake over the medium term.

Negative Factors

Declining Revenues

A sustained revenue decline erodes operating leverage and undermines the company’s ability to convert strong margin percentages into absolute profits. Continued top-line contraction will pressure reinvestment, limit scale benefits, and may necessitate cost cuts that impair long-term growth initiatives.

Severe Free Cash Flow Deterioration

A sharp FCF drop and near-zero cash conversion signal weak cash generation despite reported profits. This impairs the company’s ability to fund working capital, invest in program development, or absorb shocks without external financing, raising structural liquidity and execution risk over coming quarters.

Low Return on Equity

A low ROE indicates the business is generating limited returns on shareholder capital. Combined with revenue declines, this suggests asset utilization or growth strategy issues; persistently low ROE will constrain long-term investor returns and reduce capacity to attract capital for expansion.

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

Company Description

Wisdom Education International Holdings Company Limited, an investment holding company, operates primary and secondary schools in the People's Republic of China and Hong Kong. The company offers private education for primary, middle, and high schools. It also provides international programs; and school-based elective courses, including courses for sports, arts, music, and Chinese culture. In addition, the company offers educational consultancy and investment services. It also operates 15 boarding schools. Wisdom Education International Holdings Company Limited was founded in 2002 and is headquartered in Dongguan, China.

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

Income statement shows a meaningful revenue decline (-17.28%) and weaker net margin (29.28%) despite strong EBIT/EBITDA margins. Balance sheet leverage improved (debt-to-equity 0.38) but ROE is low (5.91%). Cash flow is the biggest weakness with sharply lower free cash flow (-74.74%) and very weak cash conversion (operating cash flow to net income 0.02).

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	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	129.41M	180.99M	319.27M	277.59M	2.26B
Gross Profit	59.50M	72.30M	170.15M	153.37M	1.00B
EBITDA	64.64M	123.36M	140.93M	112.79M	852.42M
Net Income	37.89M	96.43M	163.12M	95.09M	-2.12B
Balance Sheet
Total Assets	1.26B	1.28B	1.44B	1.48B	1.41B
Cash, Cash Equivalents and Short-Term Investments	426.57M	47.02M	350.35M	453.86M	570.98M
Total Debt	245.54M	277.64M	293.63M	375.05M	179.74M
Total Liabilities	620.73M	674.90M	827.33M	1.02B	826.87M
Stockholders Equity	640.58M	601.43M	612.21M	451.60M	578.65M
Cash Flow
Free Cash Flow	3.00M	-16.05M	12.05M	31.93M	-423.77M
Operating Cash Flow	10.02M	-13.42M	209.21M	32.70M	1.00B
Investing Cash Flow	88.72M	-7.48M	-212.84M	34.79M	-2.28B
Financing Cash Flow	-41.00M	-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: Positive
• RSI: Neutral
• STOCH: Positive

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 above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.08, and below the 200-day MA of 0.11, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 33.77 is Neutral, neither overbought nor oversold. The STOCH value of 8.33 is Positive, 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
1851	74 Outperform	HK$1.93B	1.58	15.11%	―	1.40%	-15.24%
1756	72 Outperform	HK$684.00M	1.48	10.92%	―	13.88%	1.52%
6913	72 Outperform	HK$328.16M	1.02	5.13%	11.00%	15.28%	-23.69%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1569	56 Neutral	HK$767.63M	-33.76	-2.14%	5.30%	-20.92%	-121.60%
6068	52 Neutral	HK$153.82M	6.71	6.07%	―	-27.76%	-60.29%

Wisdom Education International Holdings Co. Ltd. Corporate Events

Wisdom Education Wins Unanimous Shareholder Backing at 2026 AGM

Wisdom Education International Holdings reported that all resolutions at its 13 February 2026 annual general meeting were passed by poll with 100% of votes cast in favour and no opposing votes. Shareholders approved the 2025 audited financial statements, re-elected executive directors Li Suwen and Liu Xuebin, re-appointed Deloitte Touche Tohmatsu as auditor, and authorized the board to set related remuneration.

Investors also granted the board general mandates to issue up to 20% additional shares, repurchase up to 10% of issued shares, and extend the issuance mandate by the amount of any repurchased shares. The unanimous support strengthens the board’s flexibility in capital management and corporate governance, signaling solid shareholder backing for the company’s current leadership and strategic direction.

The most recent analyst rating on (HK:6068) stock is a Hold with a HK$0.09 price target. To see the full list of analyst forecasts on Wisdom Education International Holdings Co. Ltd. stock, see the HK:6068 Stock Forecast page.

Wisdom Education Announces Annual General Meeting and Key Resolutions

Wisdom Education International Holdings Co. Ltd. has announced its upcoming Annual General Meeting to be held on February 13, 2026. Key agenda items include the approval of audited financial statements, re-election of directors, and granting a mandate to the board for share allotment, which could influence the company’s capital structure and shareholder value.

The most recent analyst rating on (HK:6068) stock is a Hold with a HK$0.10 price target. To see the full list of analyst forecasts on Wisdom Education International Holdings Co. Ltd. stock, see the HK:6068 Stock Forecast page.