Bojun Education Company Limited (1758) AI Stock Analysis

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Bojun Education Company Limited

(HKEX:1758)

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Rating:38Underperform

Price Target:HKD 0.09▲(18.92% Upside)

Action:downgraded

Date:09/09/26

The score is driven primarily by very weak financial performance (large losses, extremely high leverage with a thin equity cushion, and sharply negative free cash flow). Technicals are also bearish with the price below key moving averages, though oversold indicators provide only limited support. Valuation is constrained by a negative P/E and lack of dividend yield data.

Positive Factors

Positive Gross MarginA positive gross margin indicates the core education services generated revenue above direct costs in 2025, preserving some unit-level economics despite broader losses. This provides a foundation for recovery if operating expenses and revenue execution become more stable.

Negative Factors

Extreme and Worsening LeverageDebt rising while equity contracts leaves the company with a very thin capital cushion relative to obligations. Debt-to-equity near 28x increases refinancing and solvency risk, and restricts financial flexibility until operating performance and retained capital improve.

Bojun Education Company Limited (1758) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 65.03M
Dividend Yield: ―
Average Volume (3M): 76.59K
Price to Earnings (P/E): -0.3
Beta (1Y): -0.26
Revenue Growth: -13.02%
EPS Growth: -213.30%
Country: Hong Kong
Employees: 2,284
Sector: Consumer Defensive
Sector Strength: 62
Industry: Education & Training Services

Bojun Education Company Limited Business Overview & Revenue Model

Company Description

Bojun Education Company Limited operates as an investment holding enterprise, providing private educational services throughout the People's Republic of China. The company's activities are structured into two main divisions: Preschool Education and D...

Bojun Education Company Limited Financial Statement Overview

Summary

Financials appear highly stressed: 2025 returned to a large net loss (about -34% net margin) with negative operating profit, leverage is extremely high with a very thin equity base (debt-to-equity ~28x), and cash generation deteriorated sharply (operating cash flow ~5M and free cash flow ~-272M). These factors indicate elevated solvency and funding risk despite a still-positive gross margin.

Income Statement

34Negative

Balance Sheet

12Very Negative

Cash Flow

18Very Negative

Financial statement breakdown
Breakdown	TTM	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	346.82M	378.79M	429.76M	81.31M	33.60M	0
Gross Profit	108.41M	144.68M	204.90M	11.92M	16.77M	-23.70M
EBITDA	35.66M	54.89M	191.32M	-12.09M	-6.04M	11.50M
Net Income	-161.11M	-129.62M	-39.57M	51.05M	-9.40M	-629.02M
Balance Sheet
Total Assets	3.84B	3.90B	4.02B	4.06B	1.17B	1.20B
Cash, Cash Equivalents and Short-Term Investments	131.16M	189.91M	225.80M	346.55M	155.07M	93.21M
Total Debt	2.01B	1.95B	1.50B	1.51B	160.84M	832.73M
Total Liabilities	3.57B	3.58B	3.50B	3.52B	989.84M	1.11B
Stockholders Equity	29.68M	68.78M	198.41M	237.68M	179.26M	84.02M
Cash Flow
Free Cash Flow	27.08M	-272.07M	-169.23M	7.88M	-114.06M	-72.18M
Operating Cash Flow	98.15M	5.22M	175.25M	13.12M	25.86M	127.68M
Investing Cash Flow	-67.12M	-326.82M	-385.81M	346.54M	-53.74M	-472.41M
Financing Cash Flow	-70.23M	236.40M	89.91M	-168.54M	89.45M	20.84M

Bojun Education Company Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price0.07

Price Trends

50DMA0.08Negative

100DMA0.10Negative

200DMA0.10Negative

Market Momentum

MACD-0.00Negative

RSI16.32Positive

STOCH25.00Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1758, the sentiment is Negative. The current price of 0.07 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.08, and below the 200-day MA of 0.10, indicating a bearish trend. The MACD of -0.00 indicates Negative momentum. The RSI at 16.32 is Positive, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1758.

Bojun Education Company Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

HK:1758 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:3978	73Outperform	HKD 1.73B	4.80	36.98%	12.83%	23.93%	13.07%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HK:1565	53Neutral	HKD 509.65M	10.93	4.03%	6.06%	7.99%	-43.24%
HK:8160	49Neutral	HKD 111.69M	-3.79	-66.19%	―	-4.46%	-8.16%
HK:1569	40Underperform	HKD 286.80M	-0.32	-17.16%	―	-3.64%	-598.92%
HK:1758	38Underperform	HKD 66.83M	-0.34	-327.25%	―	-13.02%	-213.30%

* Consumer Defensive Sector Average

Performance Comparison

HK:1758 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:1758	Bojun Education Company Limited	0.07	-0.06	-44.78%
HK:1565	Virscend Education Company Limited	0.17	-0.04	-19.51%
HK:1569	Minsheng Education Group Co. Ltd.	0.07	-0.13	-66.00%
HK:3978	China Beststudy Education Group	2.31	-2.20	-48.75%
HK:8160	Goldway Education Group Ltd.	0.52	0.18	52.94%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 09, 2026

Bojun Education Company Limited AI Stock Analysis