China Yuhua Education Corp. Ltd. (6169) AI Stock Analysis

• Market Cap: HK$2.16B
• Dividend Yield: N/A
• Average Volume (3M): 6.46M
• Price to Earnings (P/E): 2.8
• Beta (1Y): 1.05
• Revenue Growth: 1.32%
• EPS Growth: -20.13%
• Country: HK
• Employees: 7,806
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Education & Training Services
• EPS (TTM): 0.12
• Shares Outstanding: 4,266,908,700
• 10 Day Avg. Volume: 3,793,062
• 30 Day Avg. Volume: 6,457,854
• PEG Ratio: -0.13
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.97
• 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$0.50
• Price Target Upside: -1.96% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: HK$0.50 ▼(-1.96%Downside)

The overall stock score reflects strong technical trends and undervaluation, offset by mixed financial performance. The company's robust balance sheet and low P/E ratio are significant strengths, while areas for improvement include cash flow management and return on equity.

China Yuhua Education Corp. Ltd. Business Overview & Revenue Model

Company Description

China Yuhua Education Corp. Ltd. (6169) is a prominent education service provider in China, primarily engaged in operating private schools. The company offers a comprehensive range of educational services spanning from kindergarten to higher education, including high schools and universities. With a focus on delivering quality education, the company operates a network of schools across multiple regions in China, providing students with diverse educational programs and services.

How the Company Makes Money

China Yuhua Education Corp. Ltd. generates revenue primarily through tuition fees collected from students enrolled in its schools. The company operates a variety of educational institutions, including kindergartens, primary and secondary schools, and higher education establishments, each contributing to its income through enrollment fees and other educational services. Significant revenue streams include tuition and boarding fees, which are determined based on the level of education and the specific program offered. Additionally, the company may receive government subsidies or grants as part of educational initiatives and partnerships with local authorities, which contribute to its financial performance.

China Yuhua Education Corp. Ltd. Financial Statement Overview

Summary

China Yuhua Education Corp. Ltd. shows a mixed financial performance with strengths in revenue growth and operational efficiency. The balance sheet is solid with low leverage, but declining returns on equity and negative free cash flow growth highlight potential areas for improvement.

Income Statement

The company demonstrates stable revenue growth, with a moderate increase from last year, reflecting resilience in the education sector. However, the gross and net profit margins have decreased, indicating increasing costs or pricing pressures. EBIT and EBITDA margins remain healthy, showcasing operational efficiency despite reduced profitability.

Balance Sheet

The balance sheet is robust with a high equity ratio and declining debt-to-equity ratio, indicating strong financial stability and lower leverage. The return on equity has dropped significantly, suggesting challenges in generating returns on investments. Overall, the company maintains a solid asset base with ample equity.

Cash Flow

Cash flow analysis reveals a decline in free cash flow, primarily due to high capital expenditures, which could impact liquidity. The operating cash flow remains strong relative to net income, indicating good cash generation capabilities. However, the negative free cash flow growth rate is a concern for future financial flexibility.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	2.49B	2.38B	2.38B	2.26B	2.03B
Gross Profit	982.30M	1.15B	1.42B	1.52B	1.25B
EBITDA	1.11B	1.25B	1.31B	1.94B	699.25M
Net Income	398.74M	1.13B	1.13B	1.69B	38.64M
Balance Sheet
Total Assets	12.54B	11.99B	11.49B	8.91B	9.72B
Cash, Cash Equivalents and Short-Term Investments	2.09B	2.37B	4.24B	1.66B	2.23B
Total Debt	2.16B	2.29B	2.45B	2.54B	3.48B
Total Liabilities	5.01B	4.99B	5.67B	5.13B	5.63B
Stockholders Equity	7.49B	6.95B	5.79B	3.76B	3.63B
Cash Flow
Free Cash Flow	-219.66M	-1.84B	1.87B	1.76B	684.36M
Operating Cash Flow	1.69B	418.87M	2.18B	2.00B	987.87M
Investing Cash Flow	-1.88B	-2.32B	-294.29M	-847.97M	-355.22M
Financing Cash Flow	-83.91M	-15.17M	644.31M	-1.67B	-564.13M

China Yuhua Education Corp. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6169, the sentiment is Positive. The current price of 0.51 is above the 20-day moving average (MA) of 0.45, above the 50-day MA of 0.45, and above the 200-day MA of 0.40, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 68.02 is Neutral, neither overbought nor oversold. The STOCH value of 94.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6169.

China Yuhua Education Corp. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2001	80 Outperform	HK$2.05B	2.54	18.95%	0.46%	9.07%	5.93%
1935	76 Outperform	HK$1.41B	4.20	10.97%	―	10.10%	-21.18%
0382	75 Outperform	HK$1.97B	2.86	15.41%	11.98%	9.66%	-8.34%
6169	74 Outperform	HK$2.16B	2.82	7.75%	―	1.32%	-20.13%
1765	73 Outperform	€1.61B	2.07	7.59%	―	1.93%	―
1769	63 Neutral	HK$2.03B	12.10	26.84%	―	46.88%	67.94%
Sector *	57 Neutral	HK$24.54B	3.87	-2.03%	6.53%	-0.31%	-67.70%

China Yuhua Education Corp. Ltd. Corporate Events

China Yuhua Education Proposes Governance Updates

China Yuhua Education Corporation Limited has announced its intention to adopt a new memorandum and articles of association. This move aims to align its existing governance documents with recent amendments to the Hong Kong Stock Exchange’s listing rules, particularly concerning electronic corporate communications. The proposed changes will be subject to shareholder approval at the upcoming annual general meeting in August 2025.

China Yuhua Education Updates on Warrant Issuance

China Yuhua Education Corporation Limited announced an update regarding the issuance of warrants as a consent fee. The company is in discussions with the Original Consenting Bondholders to extend the Warrants Long Stop Date due to the need for additional time to finalize transaction documents. Further announcements will be made in compliance with the listing rules to keep shareholders and potential investors informed.

China Yuhua Education Reports Strong Interim Results with Significant Profit Growth

China Yuhua Education Corporation Limited announced its unaudited consolidated interim results for the six months ending February 28, 2025, reporting a 7.2% increase in revenue to RMB 1,278,104,000 and a significant 108.7% rise in adjusted net profit attributable to owners, reaching RMB 434,529,000. The company attributes these gains to improved operational efficiencies and strategic acquisitions, enhancing its market positioning and providing valuable insights for stakeholders regarding its financial health and growth trajectory.

China Yuhua Education Schedules Board Meeting for Interim Results

China Yuhua Education Corporation Limited has announced a board meeting scheduled for April 30, 2025. The meeting’s agenda includes approving the interim results for the six months ending February 28, 2025, and considering the payment of an interim dividend, which could impact the company’s financial strategy and stakeholder interests.