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

• Market Cap: HK$2.28B
• Dividend Yield: N/A
• Average Volume (3M): 5.02M
• Price to Earnings (P/E): 3.0
• Beta (1Y): 0.95
• Revenue Growth: 1.32%
• EPS Growth: -20.13%
• Country: HK
• Employees: 7,806
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Education & Training Services
• EPS (TTM): N/A
• Shares Outstanding: 4,266,908,700
• 10 Day Avg. Volume: 4,696,000
• 30 Day Avg. Volume: 5,019,620
• 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: HK$0.50
• Price Target Upside: -7.41% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: HK$0.50 ▼(-7.41% Downside)

The stock of China Yuhua Education Corp. Ltd. is positively influenced by strong technical indicators and an attractive valuation. Financial performance shows resilience with stable revenue growth and operational efficiency, but areas such as free cash flow and return on equity need attention. Overall, the stock presents a promising investment opportunity with current market momentum supporting potential gains.

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

Company Description

China YuHua Education Corporation Limited, together with its subsidiaries, provides education services in the People's Republic of China and Thailand. The company operates through Kindergartens, Grade 1–12, and University segments. Its services include private education; university education that includes tertiary level education; and K-12 school education, which provides education from kindergarten to high school under the YuHua brand. The company also operates vocational schools. As of August 31, 2020, it operated 26 schools in China and 1 school in Thailand. In addition, the company is involved in the property management business; and provision of research and training services. The company was founded in 2001 and is headquartered in Zhengzhou, the People's Republic of China. China YuHua Education Corporation Limited is a subsidiary of GuangYu Investment Holdings Limited.

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. demonstrates stable revenue growth and operational efficiency. The balance sheet is robust with low leverage, but declining returns on equity and negative free cash flow growth indicate potential financial challenges.

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: 0.54
• 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 0.54 is above the 20-day moving average (MA) of 0.51, above the 50-day MA of 0.49, and above the 200-day MA of 0.41, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 67.95 is Neutral, neither overbought nor oversold. The STOCH value of 81.87 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
1935	81 Outperform	HK$1.36B	4.01	10.97%	―	10.10%	-21.18%
0382	77 Outperform	HK$1.93B	2.81	15.41%	12.17%	9.66%	-8.34%
1765	77 Outperform	HK$1.60B	2.13	7.59%	―	1.93%	―
2001	75 Outperform	HK$2.15B	2.51	18.95%	7.99%	9.07%	5.93%
6169	72 Outperform	HK$2.28B	3.04	7.75%	―	1.32%	-20.13%
Sector *	61 Neutral	$16.55B	10.17	-9.03%	3.32%	1.46%	-22.90%
1769	60 Neutral	HK$1.66B	10.10	26.84%	―	46.88%	67.94%

China Yuhua Education Corp. Ltd. Corporate Events

China Yuhua Education Announces 2025 AGM Agenda

China Yuhua Education Corporation Limited has announced its upcoming annual general meeting scheduled for August 11, 2025, in Zhengzhou, Henan Province. Key agenda items include the adoption of the audited financial statements for the year ending August 31, 2024, re-election of directors, re-appointment of auditors, and authorization for the board to manage share allotments. These resolutions are critical for the company’s governance and operational continuity, potentially impacting its market positioning and stakeholder confidence.

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.