Dadi Education Holdings Ltd (8417) AI Stock Analysis

• Market Cap: HK$31.51M
• Dividend Yield: N/A
• Average Volume (3M): 292.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.42
• Revenue Growth: -13.68%
• EPS Growth: -129.41%
• Country: HK
• Employees: 46
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.00
• Shares Outstanding: 1,750,400,000
• 10 Day Avg. Volume: 489,000
• 30 Day Avg. Volume: 292,000
• PEG Ratio: -0.08
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 1.32
• P/FCF Ratio: -3.49
• 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: 48 Neutral
• Price Target: HK$0.02 ▼(-10.00% Downside)

The score is primarily weighed down by weak financial performance, with steep losses and negative cash flow despite low leverage. Technicals are only modestly supportive, with mixed momentum and an extreme overbought RSI. Valuation offers limited support because the negative P/E is driven by unprofitability and there is no dividend yield data.

Positive Factors

Low leverage

A debt-to-equity of 0.05 gives the company durable financial flexibility, lowering insolvency risk and enabling it to fund restructuring or invest in product development without heavy interest burdens. This strengthens its capacity to weather cyclical downturns and pursue strategic initiatives.

Healthy gross margin

A 35% gross margin indicates the core product and course economics are sound, providing room to absorb SG&A and marketing while pursuing scale. If management can control operating costs, this structural margin supports a credible path to profitability over several quarters.

Diverse revenue streams & partnerships

Multiple delivery modes (online/offline), subscription potential, tech offerings, and institutional partnerships reduce single-channel risk. Combined with government initiatives supporting education tech, this structural mix supports recurring revenue and scalable distribution over the medium term.

Negative Factors

Declining revenue

Sustained revenue decline hampers operating leverage and suggests weakening market traction or competitive pressure. Over several quarters, falling top-line makes it harder to cover fixed costs, delays breakeven, and increases dependence on external funding to sustain operations.

Large negative operating margins

Very large negative EBIT and net margins indicate the business currently destroys value at scale. Without structural cost reduction or better pricing/mix, losses will continue to erode equity and require recurring capital injections, undermining long-term viability and strategic options.

Cash flow weakness

Negative operating cash flow shows core operations aren’t generating cash, raising liquidity and funding risk. The reported FCF growth may mask one-offs; persistent OCF deficits force reliance on financing or asset sales, threatening the firm's ability to execute multi-quarter recovery plans.

Dadi Education Holdings Ltd Business Overview & Revenue Model

Company Description

Dadi Education Holdings Ltd (8417) is an education services provider based in China, focusing on the development and delivery of educational content and services across various sectors. The company primarily operates through its subsidiaries, which offer a range of educational programs, including online courses, tutoring services, and educational materials, targeting both K-12 and higher education markets. Dadi Education aims to leverage technology to enhance learning experiences and expand access to quality education.

How the Company Makes Money

Dadi Education generates revenue primarily through the sale of educational courses and materials, which include online and offline tutoring services, educational software, and learning resources. The company has established several key partnerships with educational institutions and technology providers to enhance its offerings and reach a broader audience. Additionally, Dadi Education benefits from government initiatives that promote education and technology integration in learning, which contributes to its revenue growth. The diversification of its services, along with a focus on quality and accessibility, allows the company to tap into various revenue streams, including tuition fees, subscription models for online learning platforms, and sales of proprietary educational content.

Dadi Education Holdings Ltd Financial Statement Overview

Summary

Weak fundamentals driven by declining revenue (-8.41%), very negative profitability (net margin -52.58%, EBIT margin -46.10%), and negative operating/free cash flow. A low debt-to-equity ratio (0.05) is a stabilizing positive, but not enough to offset persistent losses and cash flow strain.

Income Statement

Dadi Education Holdings Ltd has experienced declining revenue over the past year, with a negative revenue growth rate of -8.41%. The company is struggling with profitability, as indicated by a negative net profit margin of -52.58% and a negative EBIT margin of -46.10%. Despite a gross profit margin of 35.15%, the overall financial health of the income statement is weak due to consistent losses.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio of 0.05, indicating low leverage, which is a positive aspect. However, the return on equity is negative at -17.58%, reflecting poor profitability and efficiency in using shareholders' equity. The equity ratio is not explicitly calculated, but the company maintains a strong equity position relative to its assets.

Cash Flow

The cash flow statement reveals significant challenges, with negative operating cash flow and free cash flow. Although there is a positive free cash flow growth rate of 276.49%, the operating cash flow to net income ratio is negative, indicating cash flow issues. The free cash flow to net income ratio is slightly above 1, suggesting some alignment between cash flow and reported earnings despite the losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.41M	15.88M	16.87M	16.64M	16.76M	16.02M
Gross Profit	-7.09M	5.58M	-5.92M	4.11M	-5.84M	6.81M
EBITDA	-3.49M	-5.83M	-3.73M	-6.66M	-1.89M	9.63M
Net Income	-10.10M	-8.35M	-6.34M	-9.86M	-5.15M	6.04M
Balance Sheet
Total Assets	57.27M	54.59M	64.10M	71.45M	78.42M	84.59M
Cash, Cash Equivalents and Short-Term Investments	43.56M	40.63M	47.15M	54.37M	61.94M	65.74M
Total Debt	6.18M	2.35M	3.53M	5.13M	2.70M	3.82M
Total Liabilities	10.16M	6.63M	7.89M	8.69M	5.49M	6.71M
Stockholders Equity	46.87M	47.48M	55.73M	62.29M	72.61M	77.48M
Cash Flow
Free Cash Flow	-7.31M	-6.02M	-6.79M	-6.42M	-2.00M	7.39M
Operating Cash Flow	-7.29M	-6.00M	-6.70M	-6.37M	-1.95M	7.47M
Investing Cash Flow	11.73M	11.32M	825.00K	-12.98M	636.00K	727.00K
Financing Cash Flow	2.24M	-2.33M	-2.27M	-2.69M	-2.85M	-2.85M

Dadi Education Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8417, the sentiment is Positive. The current price of 0.02 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and above the 200-day MA of 0.02, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 100.00 is Negative, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8417.

Dadi Education Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1758	51 Neutral	HK$65.93M	-0.47	-95.59%	―	-11.92%	-227.64%
1775	49 Neutral	HK$223.87M	-8.54	-60.77%	―	22.97%	1.03%
8160	49 Neutral	HK$47.94M	-3.49	-42.79%	―	11.36%	4.80%
8417	48 Neutral	HK$31.51M	-4.87	-13.57%	―	-13.68%	-129.41%