Virscend Education Co. Ltd. (1565) 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

JH Educational Technology, Inc.

China Gingko Education Group Co., Ltd.

Water Oasis Group Ltd.

China Xinhua Education Group Ltd.

Virscend Education Co. Ltd.

China Wan Tong Yuan (Holdings) Ltd.

Success Universe Group Ltd.

Poly Culture Group Corp. Ltd.

Orient Victory Smart Urban Services Holding Ltd.

Optima Automobile Group Holdings Ltd.

Feiyang International Holdings Group Ltd.

Why is Virscend Education Co. Ltd. ?

High Management Efficiency with a high ROCE of 1,196.07%

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -10.80% and Operating profit at -11.07% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -10.80% and Operating profit at -11.07% over the last 5 years

Flat results in Aug 25

RAW MATERIAL COST(Y) Grown by 16.06% (YoY)
PRE-TAX PROFIT(Q) Lowest at HKD 2.53 MM
NET PROFIT(Q) Lowest at HKD 8.95 MM

With ROE of 8.82%, it has a Expensive valuation with a 0.64 Price to Book Value

Over the past year, while the stock has generated a return of -4.85%, its profits have risen by 54.9% ; the PEG ratio of the company is 0.1

Underperformed the market in the last 1 year

Even though the market (Hang Seng Hong Kong) has generated returns of 8.25% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -4.85% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Virscend Education Co. Ltd. should be less than 10%
Overall Portfolio exposure to Tour, Travel Related Services should be less than 30%

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

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

Is Virscend Education Co. Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Virscend Education Co. Ltd.

-100.0%

0.08

55.12%

Hang Seng Hong Kong

8.25%

0.41

19.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-10.80%

EBIT Growth (5y)

-11.07%

EBIT to Interest (avg)

0.59

Debt to EBITDA (avg)

12.29

Net Debt to Equity (avg)

1.66

Sales to Capital Employed (avg)

140.42

Tax Ratio

10.45%

Dividend Payout Ratio

48.78%

Pledged Shares

Institutional Holding

ROCE (avg)

1,196.07%

ROE (avg)

3.46%

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

0.64

EV to EBIT

9.97

EV to EBITDA

5.84

EV to Capital Employed

0.86

EV to Sales

1.92

PEG Ratio

0.13

Dividend Yield

15.62%

ROCE (Latest)

8.68%

ROE (Latest)

8.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

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

2What is working for the Company

CASH AND EQV(HY)

Highest at HKD 1,112.92 MM

DEBT-EQUITY RATIO (HY)

Lowest at 132.33 %

-5What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 16.06% (YoY

PRE-TAX PROFIT(Q)

Lowest at HKD 2.53 MM

NET PROFIT(Q)

Lowest at HKD 8.95 MM

EPS(Q)

Lowest at HKD 0

Here's what is working for Virscend Education Co. Ltd.

Cash and Eqv

Highest at HKD 1,112.92 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 132.33 %

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 104.22 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 104.22 MM has Grown at 40.26%

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 Virscend Education Co. Ltd.

Pre-Tax Profit

Lowest at HKD 2.53 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Pre-Tax Profit

Fallen at -88.19%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD 8.95 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

EPS

Lowest at HKD 0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Raw Material Cost

Grown by 16.06% (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