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

• Market Cap: HK$393.53M
• Dividend Yield: 4.41%
• Average Volume (3M): 2.28M
• Price to Earnings (P/E): 4.0
• Beta (1Y): 0.40
• Revenue Growth: 20.53%
• EPS Growth: -21.74%
• Country: HK
• Employees: 542
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Education & Training Services
• EPS (TTM): <0.01
• Shares Outstanding: 1,334,000,000
• 10 Day Avg. Volume: 1,269,631
• 30 Day Avg. Volume: 2,275,477
• PEG Ratio: -0.20
• Price to Book (P/B): 0.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.59
• 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: 71 Outperform
• Price Target: HK$0.50 ▲(66.67%Upside)

The overall stock score of 71 reflects strong valuation metrics, with a low P/E ratio and high dividend yield, suggesting the stock is undervalued. Financial performance indicates growth potential but reveals challenges in profitability and liquidity management. Technical analysis shows a neutral to slightly bearish trend, balancing the score.

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

South China Vocational Education Group Co., Ltd. generates revenue primarily through tuition fees collected from students enrolled in its vocational programs. The company may also receive funding and subsidies from government bodies aimed at promoting vocational education. Additionally, partnerships with industry leaders and employers who seek skilled graduates can provide supplementary income streams through collaborative training programs and internship placements. These partnerships not only enhance the learning experience but also increase the employability of graduates, thereby reinforcing the company's reputation and attracting more students.

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

Summary

South China Vocational Education Group Co., Ltd. demonstrates robust revenue growth, yet faces challenges in maintaining its 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. Overall, the company shows potential for growth, albeit with profitability and liquidity management challenges.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	683.62M	556.20M	516.28M	499.62M	449.35M
Gross Profit	189.94M	176.50M	196.84M	201.61M	209.02M
EBITDA	94.00M	221.53M	248.63M	260.43M	267.20M
Net Income	90.89M	112.40M	142.61M	153.94M	170.50M
Balance Sheet
Total Assets	2.53B	2.47B	2.34B	2.28B	1.92B
Cash, Cash Equivalents and Short-Term Investments	364.22M	423.52M	247.31M	552.44M	308.64M
Total Debt	284.48M	322.31M	342.51M	416.80M	519.60M
Total Liabilities	873.22M	814.53M	798.59M	823.45M	1.04B
Stockholders Equity	1.66B	1.65B	1.54B	1.46B	882.93M
Cash Flow
Free Cash Flow	-7.54M	51.27M	110.65M	42.98M	200.76M
Operating Cash Flow	285.34M	268.24M	308.42M	195.85M	295.29M
Investing Cash Flow	-296.98M	-63.95M	-352.62M	-260.09M	-51.31M
Financing Cash Flow	-128.65M	-30.41M	-190.49M	258.18M	-142.37M

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

• Technical Analysis Sentiment: Positive
• Last Price: 0.30
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 0.3 is above the 20-day moving average (MA) of 0.29, above the 50-day MA of 0.28, and above the 200-day MA of 0.30, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.18 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
1851	76 Outperform	HK$695.00M	4.19	17.84%	―	2.89%	1.19%
1756	74 Outperform	HK$768.00M	1.53	12.24%	―	13.37%	15.55%
6913	71 Outperform	HK$393.53M	3.99	5.50%	4.41%	20.53%	-21.74%
1449	64 Neutral	HK$165.33M	9.80	1.65%	―	8.89%	-65.76%
6068	60 Neutral	HK$229.64M	2.11	16.80%	51.89%	-41.24%	-36.17%
Sector *	57 Neutral	HK$24.54B	3.89	-2.03%	6.19%	-0.31%	-67.70%
1569	48 Neutral	HK$679.05M	536.67	0.02%	6.09%	-18.89%	-99.23%

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

South China Vocational Education Group Announces EGM for Auditor Appointment

South China Vocational Education Group Co., Ltd. has announced an Extraordinary General Meeting to be held on July 23, 2025, to appoint AOGB CPA Limited as the new auditor of the company and its subsidiaries. This decision is part of the company’s ongoing efforts to maintain transparency and compliance with regulatory standards, which is crucial for its stakeholders and market positioning.

South China Vocational Education Group Proposes New Auditor Appointment

South China Vocational Education Group Company Limited, a company incorporated in the Cayman Islands, has announced the proposed appointment of AOGBCPA Limited as its new auditor for the year ending December 31, 2025. This decision follows the retirement of Ernst & Young and comes after careful consideration by the company’s audit committee, which evaluated AOGBCPA’s audit experience, industry knowledge, and independence. The appointment is pending approval by the shareholders at an upcoming extraordinary general meeting.

South China Vocational Education Group Strengthens Nomination Committee

South China Vocational Education Group Co., Ltd. has announced the appointment of Ms. He Huifen and Mr. Ma Shuchao to its Nomination Committee, effective June 30, 2025. This strategic move is expected to enhance the governance structure of the company, potentially impacting its operational effectiveness and stakeholder confidence positively.

South China Vocational Education Group Announces Board Composition

South China Vocational Education Group Co., Ltd. has announced the composition of its board of directors, detailing the roles and functions of each member. This announcement reflects the company’s commitment to maintaining a structured governance framework, which may enhance its strategic decision-making and operational efficiency.

South China Vocational Education Group Forms Nomination Committee

South China Vocational Education Group Co., Ltd. has established a Nomination Committee to oversee the structure, size, and composition of its Board of Directors. This move is aimed at ensuring the Board’s alignment with the company’s corporate strategy and compliance with Hong Kong’s listing rules, potentially impacting the company’s governance and strategic direction.

South China Vocational Education Group Secures Shareholder Approval for Key Resolutions

South China Vocational Education Group Co., Ltd. announced that all resolutions proposed at its annual general meeting held on May 28, 2025, were approved by shareholders. Key resolutions included the adoption of financial statements, declaration of a final dividend, re-election of directors, and granting mandates for share issuance and repurchase. This successful approval of resolutions supports the company’s operational plans and strategic initiatives, potentially strengthening its market position and providing value to stakeholders.

South China Vocational Education Group Announces Auditor Change

South China Vocational Education Group Co., Ltd. announced the retirement of its current auditor, Ernst & Young (EY), due to a disagreement over audit fees for the year ending December 31, 2025. EY will not seek re-appointment and will retire at the conclusion of the upcoming annual general meeting. EY issued a qualified opinion on the company’s financial statements for 2024, highlighting a limitation of scope concerning promotion expenses. The company is actively seeking a new auditor to fill the vacancy, ensuring compliance with the Listing Rules.

South China Vocational Education Group Announces AGM and Key Resolutions

South China Vocational Education Group Co., Ltd. has announced its annual general meeting scheduled for May 28, 2025, where key resolutions will be discussed, including the adoption of financial statements, declaration of a final dividend, and re-election of directors. The meeting will also address the authorization for directors to manage share allotments, which could impact the company’s capital structure and shareholder value.