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

• Market Cap: HK$366.85M
• Dividend Yield: 11%
• Average Volume (3M): 262.53K
• Price to Earnings (P/E): 3.9
• Beta (1Y): 0.39
• 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: 215,400
• 30 Day Avg. Volume: 262,533
• 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 ▲(72.41% 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.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for vocational education services, supporting long-term business expansion and market presence.

Financial Stability

Low leverage enhances financial stability, providing the company with flexibility to invest in growth opportunities and withstand economic fluctuations.

Cash Conversion Efficiency

Efficient cash conversion supports liquidity and operational resilience, enabling the company to fund operations and strategic initiatives without relying heavily on external financing.

Negative Factors

Profit Margin Decline

Declining profit margins suggest rising costs or pricing pressures, which could impact profitability and limit reinvestment capacity if not addressed.

Operational Efficiency Pressure

Reduced operational efficiency may hinder the company's ability to maintain competitive pricing and profitability, affecting long-term financial performance.

Liquidity Concerns

Uncertainty about current liquidity could pose risks to the company's ability to meet short-term obligations and invest in growth, potentially affecting financial stability.

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

Company Description

South China Vocational Education Group Company Limited provides vocational training and education in internet, e-commerce, telecommunications, software, animation, and healthcare industries in the Greater Bay Area and China. It also offers junior college education and technical education services, as well as education management services. As of December 31, 2021, the company operated two schools. The company was founded in 1993 and is headquartered in Guangzhou, China.

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: Negative
• Last Price: 0.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6913, the sentiment is Negative. The current price of 0.29 is above the 20-day moving average (MA) of 0.29, below the 50-day MA of 0.29, and above the 200-day MA of 0.29, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.43 is Neutral, neither overbought nor oversold. The STOCH value of 28.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$756.00M	1.53	11.13%	―	13.88%	1.52%
1851	73 Outperform	HK$1.81B	11.41	15.11%	―	1.40%	-15.24%
6913	72 Outperform	HK$366.85M	3.93	5.05%	11.00%	15.28%	-23.69%
1449	68 Neutral	HK$162.00M	-2.02	-8.19%	―	6.79%	-470.68%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1569	56 Neutral	HK$830.89M	-7.11	-2.11%	5.30%	-20.92%	-121.60%
6068	47 Neutral	HK$181.98M	4.40	6.07%	―	-27.76%	-60.29%