China YuHua Education Corp. Ltd. (6169) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Why is China YuHua Education Corp. Ltd. ?

High Management Efficiency with a high ROE of 17.29%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 17.19

High Debt company with Weak Long Term Fundamental Strength

Positive results in Aug 25

OPERATING CASH FLOW(Y) Highest at HKD 3,593.92 MM
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
DEBT-EQUITY RATIO (HY) Lowest at -12.94 %

With ROE of 10.70%, it has a Very Attractive valuation with a 0.23 Price to Book Value

Over the past year, while the stock has generated a return of -5.88%, its profits have risen by 44.6% ; the PEG ratio of the company is 0.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -5.88% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to China YuHua Education Corp. Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is China YuHua Education Corp. Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

China YuHua Education Corp. Ltd.

-5.88%

-0.17

63.76%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.25%

EBIT Growth (5y)

-6.00%

EBIT to Interest (avg)

17.19

Debt to EBITDA (avg)

0.12

Net Debt to Equity (avg)

-0.09

Sales to Capital Employed (avg)

0.31

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

21.58%

ROE (avg)

17.29%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.23

EV to EBIT

0.99

EV to EBITDA

0.54

EV to Capital Employed

0.11

EV to Sales

0.35

PEG Ratio

0.09

Dividend Yield

ROCE (Latest)

11.41%

ROE (Latest)

10.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at HKD 3,593.92 MM

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

DEBT-EQUITY RATIO (HY)

Lowest at -12.94 %

OPERATING PROFIT(Q)

Highest at HKD 917.15 MM

OPERATING PROFIT MARGIN(Q)

Highest at 69.52 %

PRE-TAX PROFIT(Q)

Highest at HKD 567.45 MM

NET PROFIT(Q)

Highest at HKD 570.25 MM

EPS(Q)

Highest at HKD 0.13

-1What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 9.4% (YoY

Here's what is working for China YuHua Education Corp. Ltd.

Operating Cash Flow

Highest at HKD 3,593.92 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (HKD MM)

Operating Profit

Highest at HKD 917.15 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (HKD MM)

Operating Profit Margin

Highest at 69.52 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at HKD 567.45 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (HKD MM)

Net Profit

Highest at HKD 570.25 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

EPS

Highest at HKD 0.13

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (HKD)

Debt-Equity Ratio

Lowest at -12.94 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Depreciation

Highest at HKD 418.4 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Depreciation

At HKD 418.4 MM has Grown at 9.32%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (HKD MM)

Here's what is not working for China YuHua Education Corp. Ltd.

Raw Material Cost

Grown by 9.4% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales