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

• Market Cap: HK$2.16B
• Dividend Yield: N/A
• Average Volume (3M): 16.02M
• 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: 59
• Industry: Education & Training Services
• EPS (TTM): 0.12
• Shares Outstanding: 4,266,908,700
• 10 Day Avg. Volume: 15,331,483
• 30 Day Avg. Volume: 16,023,126
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: HK$0.50 ▲(0.00%Upside)

China Yuhua Education Corp. Ltd. scores 75 out of 99, driven by strong technical momentum and a favorable valuation. The financial performance is solid, though areas such as declining ROE and negative cash flow growth pose challenges. The lack of earnings call data and corporate events does not detract from the current positive outlook.

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 its network of schools. The company charges fees for enrollment, tuition, and other educational services provided to students. Additionally, it may derive income from ancillary services such as school meals, transportation, and extracurricular activities. The company leverages its established brand reputation and educational quality to maintain a steady student enrollment, which is a critical factor in sustaining its revenue streams. Partnerships with educational institutions and local governments may also play a role in expanding its operational footprint and access to new markets.

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
	EBIT
430.10M	1.13B	1.14B	1.76B	521.98M
	EBITDA
1.11B	1.25B	1.31B	1.94B	699.25M
	Net Income Common Stockholders
398.74M	1.13B	1.13B	1.69B	38.64M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.09B	2.37B	4.24B	1.66B	2.23B
	Total Assets
12.54B	11.99B	11.49B	8.91B	9.72B
	Total Debt
2.16B	2.29B	2.45B	2.54B	3.48B
	Net Debt
67.27M	-85.42M	-1.79B	883.40M	1.31B
	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: 0.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 0.5 is above the 20-day moving average (MA) of 0.48, above the 50-day MA of 0.40, and above the 200-day MA of 0.40, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 59.28 is Neutral, neither overbought nor oversold. The STOCH value of 34.12 is Neutral, 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
6169	75 Outperform	HK$2.16B	2.76	7.75%	―	1.32%	-20.13%
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%
OWH			―		―	―	―
1565		HK$744.39M	10.86	7.33%	13.28%	―	―
1773		HK$8.88B	11.93	27.25%	2.06%	―	―
2001		HK$1.81B	2.12	18.95%	0.55%	―	―

China Yuhua Education Corp. Ltd. Corporate Events

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.