South China Vocational Education Group Co., Ltd. (6913) AI Stock Analysis

• Market Cap: HK$406.87M
• Dividend Yield: 10.65%
• Average Volume (3M): 266.47K
• Price to Earnings (P/E): 4.4
• Beta (1Y): 0.62
• Revenue Growth: 15.28%
• EPS Growth: -23.69%
• Country: HK
• Employees: 542
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.07
• Shares Outstanding: 1,334,000,000
• 10 Day Avg. Volume: 149,400
• 30 Day Avg. Volume: 266,466
• PEG Ratio: -0.22
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.57
• P/FCF Ratio: -51.55
• 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: 72 Outperform
• Price Target: HK$0.50 ▲(61.29% Upside)

The stock's overall score is driven by its strong valuation metrics, particularly its low P/E ratio and high dividend yield, which suggest it is undervalued and offers a significant income component. Financial performance shows potential for growth, though profitability and liquidity management challenges persist. Technical analysis indicates a neutral market sentiment, with slight bullish momentum.

South China Vocational Education Group Co., Ltd. Business Overview & Revenue Model

Company Description

South China Vocational Education Group Co., Ltd. (6913) is a leading educational institution in China, specializing in vocational and technical training. The company operates a network of vocational schools and provides various educational services aimed at equipping students with practical skills for the labor market. Its core offerings include diploma programs, skill enhancement courses, and partnerships with local industries to facilitate job placements for graduates.

How the Company Makes Money

The company generates revenue primarily through tuition fees from students enrolled in its vocational programs. In addition to individual student payments, South China Vocational Education Group also earns income from partnerships with businesses that seek to train employees or collaborate on educational programs. Moreover, the company may receive government funding or grants aimed at promoting vocational education, which contributes to its overall revenue. The expansion of its services into online education and skill certification courses further diversifies its income streams, allowing it to reach a broader audience.

South China Vocational Education Group Co., Ltd. Financial Statement Overview

Summary

The company demonstrates robust revenue growth but faces challenges in maintaining profit margins. The balance sheet reflects strong equity backing and low leverage, enhancing financial stability. However, the absence of recent cash flow data limits a complete understanding of the company's liquidity status.

Income Statement

The company shows a consistent revenue growth trajectory with a 22.89% increase from 2023 to 2024. However, the gross profit margin decreased slightly from 31.73% to 27.79%, indicating higher costs. Net profit margin also decreased from 20.21% to 13.30%, pointing to reduced profitability. The company's EBIT and EBITDA margins have shown a decline, highlighting pressure on operational efficiency.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.17, showing prudent leverage management. Return on equity is at 5.48%, reflecting moderate profitability. The equity ratio stands at 65.48%, indicating strong asset backing by equity, which suggests financial stability.

Cash Flow

There is no available data for 2024 cash flows, but previous years show a declining free cash flow trend. The operating cash flow to net income ratio was strong in 2023 at 2.39, indicating effective cash conversion from earnings. However, the lack of recent cash flow data raises concerns about current liquidity management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	709.64M	683.62M	556.20M	516.28M	499.62M	449.35M
Gross Profit	178.97M	189.94M	176.50M	196.84M	201.61M	209.02M
EBITDA	88.16M	94.00M	221.53M	248.63M	260.43M	267.20M
Net Income	86.83M	90.89M	112.40M	142.61M	153.94M	170.50M
Balance Sheet
Total Assets	2.53B	2.53B	2.47B	2.34B	2.28B	1.92B
Cash, Cash Equivalents and Short-Term Investments	395.21M	364.22M	423.52M	248.98M	552.44M	308.64M
Total Debt	416.80M	284.48M	322.31M	342.51M	416.80M	519.60M
Total Liabilities	800.83M	873.22M	814.53M	798.59M	823.45M	1.04B
Stockholders Equity	1.72B	1.66B	1.65B	1.54B	1.46B	882.93M
Cash Flow
Free Cash Flow	65.21M	-7.54M	51.27M	110.65M	42.98M	200.76M
Operating Cash Flow	291.53M	285.34M	268.24M	308.42M	195.85M	295.29M
Investing Cash Flow	-235.47M	-296.98M	-63.95M	-352.62M	-260.09M	-51.31M
Financing Cash Flow	-48.04M	-128.65M	-30.41M	-190.49M	258.18M	-142.37M

South China Vocational Education Group Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.31
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6913, the sentiment is Neutral. The current price of 0.31 is above the 20-day moving average (MA) of 0.30, above the 50-day MA of 0.30, and above the 200-day MA of 0.28, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.41 is Neutral, neither overbought nor oversold. The STOCH value of 18.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:6913.

South China Vocational Education Group Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1756	74 Outperform	HK$840.00M	1.67	12.24%	―	13.37%	15.55%
6913	72 Outperform	HK$406.87M	4.36	5.05%	10.65%	15.28%	-23.69%
1851	70 Outperform	HK$995.00M	6.29	15.11%	―	1.40%	-15.24%
1449	68 Neutral	HK$170.00M	10.08	1.65%	―	8.89%	-65.76%
6068	65 Neutral	HK$266.47M	2.43	16.80%	―	-41.24%	-36.17%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1569	53 Neutral	HK$814.02M	―	-2.11%	5.19%	-20.92%	-121.60%

South China Vocational Education Group Co., Ltd. Corporate Events

South China Vocational Education Group Announces Dormitory Construction Agreement

South China Vocational Education Group Co., Ltd. has announced a discloseable transaction involving a Decoration and Construction Agreement for new dormitories at Lingnan Institute of Technology. The agreement, valued at approximately RMB66.97 million, involves the contractor providing decoration, installation, and construction services for the new dormitories at the Qingyuan Campus. This transaction is subject to reporting and announcement requirements as per the Listing Rules, with construction expected to be completed by June 2026.

The most recent analyst rating on (HK:6913) stock is a Buy with a HK$0.50 price target. To see the full list of analyst forecasts on South China Vocational Education Group Co., Ltd. stock, see the HK:6913 Stock Forecast page.

South China Vocational Education Group Reports 7.8% Revenue Growth in H1 2025

South China Vocational Education Group Co., Ltd. reported its unaudited interim financial results for the first half of 2025, showing a 7.8% increase in revenue compared to the same period in 2024. Despite the revenue growth, the company experienced a decline in gross profit and net profit, with a recommended interim dividend of HK2.0 cents per share, reflecting a slight decrease from the previous year.

The most recent analyst rating on (HK:6913) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on South China Vocational Education Group Co., Ltd. stock, see the HK:6913 Stock Forecast page.

South China Vocational Education Group Declares Interim Dividend

South China Vocational Education Group Co., Ltd. has announced an interim cash dividend of HKD 0.02 per share for the six months ending June 30, 2025. This announcement reflects the company’s commitment to returning value to shareholders and may positively impact investor sentiment and confidence in the company’s financial health.

The most recent analyst rating on (HK:6913) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on South China Vocational Education Group Co., Ltd. stock, see the HK:6913 Stock Forecast page.

South China Vocational Education Group Announces Board Changes

South China Vocational Education Group Co., Ltd. has announced a significant change in its board composition, effective August 29, 2025. Mr. Luo Pan has resigned from his roles as an independent non-executive director and chairman of the Audit Committee, among other positions, to pursue other engagements. Ms. Yang Yang has been appointed as his successor, bringing extensive experience in financial accounting and management from her previous roles in various companies. This change is expected to bring new perspectives and strengthen the company’s governance.

The most recent analyst rating on (HK:6913) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on South China Vocational Education Group Co., Ltd. stock, see the HK:6913 Stock Forecast page.

South China Vocational Education Group Announces Board Composition

South China Vocational Education Group Co., Ltd. has announced the composition and roles of its board of directors. The board includes executive directors and independent non-executive directors, with specific members assigned to committees such as audit, remuneration, and nomination. This announcement provides clarity on the governance structure, potentially impacting stakeholder confidence and operational transparency.

The most recent analyst rating on (HK:6913) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on South China Vocational Education Group Co., Ltd. stock, see the HK:6913 Stock Forecast page.

South China Vocational Education Group Schedules Board Meeting for Interim Results

South China Vocational Education Group Co., Ltd. has announced a board meeting scheduled for August 29, 2025, to discuss and approve the company’s unaudited interim results for the first half of 2025 and consider the payment of an interim dividend. This meeting is significant as it may influence the company’s financial strategies and impact stakeholders’ interests, reflecting on its operational and market positioning.

South China Vocational Education Group Enhances Internal Controls with New Measures

South China Vocational Education Group Co., Ltd. has announced the implementation of new measures to address an audit issue related to the documentation of services provided by third-party vendors for marketing and student recruitment. These measures include requiring vendors to provide detailed working plans, increasing supervision and checks, maintaining communication records, and holding periodic meetings. The Board believes these steps will enhance the company’s internal controls and ensure compliance with contractual terms.