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

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South China Vocational Education Group Co., Ltd.

(HKEX:6913)

Select Model

Rating:60Neutral

Price Target:HKD 0.18▲(15.03% Upside)

Action:reiterated

Date:10/31/26

The score is primarily held back by weakened financial performance, driven by the 2025 swing to a net loss and margin compression despite steady revenue growth and positive operating cash flow. Technicals are supportive with strong momentum and price above major moving averages, but overbought indicators add near-term risk. Valuation is mixed: the negative P/E reflects loss-making results, while the very high dividend yield provides support but may be less reliable given the profitability deterioration.

Positive Factors

Steady Revenue GrowthSustained revenue growth indicates continued demand for the company’s vocational and higher education offerings. Consistent top-line expansion can support investment in programs and campuses, strengthen operating scale, and provide a durable base for recovery if profitability improves.

Negative Factors

2025 Net Loss and Margin CompressionThe shift from several years of profitability to a net loss raises questions about the durability of the company’s earnings model. Margin compression can limit internal funding, weaken returns on capital, and make future growth less valuable unless cost and expense pressures are reversed.

South China Vocational Education Group Co., Ltd. (6913) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 185.43M
Dividend Yield: 20.50%
Average Volume (3M): 1.95M
Price to Earnings (P/E): -2.0
Beta (1Y): -0.15
Revenue Growth: 18.99%
EPS Growth: -197.42%
Country: Hong Kong
Employees: 2,077
Sector: Consumer Defensive
Sector Strength: 62
Industry: Education & Training Services

South China Vocational Education Group Co., Ltd. Business Overview & Revenue Model

Company Description

South China Vocational Education Group Company Limited offers extensive vocational training and educational programs throughout mainland China and the Greater Bay Area. Their curriculum focuses on high-demand sectors, including internet technologies,...

How the Company Makes Money

The company primarily makes money by charging tuition and related education fees to students enrolled in its vocational and higher education programs. Additional revenue is typically generated through ancillary student- and campus-related services (e...

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

Summary

Revenue has grown steadily through 2025, and operating cash flow stayed solidly positive (230.2M in 2025), supporting underlying business durability. However, profitability deteriorated sharply with a swing to a net loss in 2025 (-58.1M) and meaningful margin compression; equity also edged down and ROE turned negative, weakening overall fundamentals.

Income Statement

44Neutral

Balance Sheet

63Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	816.97M	791.76M	683.62M	556.20M	516.28M	499.62M
Gross Profit	234.22M	228.19M	189.94M	176.50M	196.84M	201.61M
EBITDA	156.59M	136.71M	134.82M	221.53M	248.63M	260.43M
Net Income	-85.36M	-59.62M	90.89M	112.40M	142.61M	153.94M
Balance Sheet
Total Assets	2.65B	2.92B	2.53B	2.47B	2.34B	2.28B
Cash, Cash Equivalents and Short-Term Investments	280.24M	559.83M	364.22M	423.52M	248.98M	552.44M
Total Debt	553.45M	519.82M	284.48M	322.31M	342.51M	416.80M
Total Liabilities	1.04B	1.36B	873.22M	814.53M	798.59M	823.45M
Stockholders Equity	1.61B	1.56B	1.66B	1.65B	1.54B	1.46B
Cash Flow
Free Cash Flow	-165.16M	43.08M	-7.54M	51.27M	110.65M	42.98M
Operating Cash Flow	36.47M	230.19M	285.34M	268.24M	308.42M	195.85M
Investing Cash Flow	-164.68M	-188.85M	-296.98M	-63.95M	-352.62M	-260.09M
Financing Cash Flow	54.75M	133.24M	-128.65M	-30.41M	-190.49M	258.18M

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

Technical Analysis SentimentNeutral

Last Price0.15

Price Trends

50DMA0.11Positive

100DMA0.12Positive

200DMA0.17Negative

Market Momentum

MACD0.02Negative

RSI62.96Neutral

STOCH73.94Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6913, the sentiment is Neutral. The current price of 0.15 is above the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.11, and below the 200-day MA of 0.17, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 62.96 is Neutral, neither overbought nor oversold. The STOCH value of 73.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:6913.

South China Vocational Education Group Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

HK:6913 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:1890	76Outperform	HKD 1.67B	1.65	14.92%	15.57%	19.80%	-10.87%
HK:1756	75Outperform	HKD 576.00M	1.53	7.04%	―	12.52%	-33.22%
HK:3978	73Outperform	HKD 1.82B	4.94	36.98%	12.48%	23.93%	13.07%
HK:2001	72Outperform	HKD 788.78M	0.62	19.41%	―	6.22%	7.79%
HK:2779	70Outperform	HKD 522.79M	1.38	7.69%	―	4.64%	-10.32%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HK:6913	60Neutral	HKD 214.77M	-2.02	-5.38%	20.50%	18.99%	-197.42%

* Consumer Defensive Sector Average

Performance Comparison

HK:6913 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:6913	South China Vocational Education Group Co., Ltd.	0.15	-0.15	-49.00%
HK:1890	China Kepei Education Group Limited	0.83	-0.48	-36.41%
HK:1756	China Vocational Education Holdings Limited	0.45	-0.26	-36.62%
HK:2001	China New Higher Education Group Ltd	0.39	-0.84	-68.29%
HK:2779	China Xinhua Education Group Limited	0.33	-0.33	-50.00%
HK:3978	China Beststudy Education Group	2.38	-2.18	-47.83%

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

South China Vocational Education Group Posts Higher Revenue but Lower Profit, Halts Interim Dividend

Aug 26, 2026

South China Vocational Education Group reported a 6.9% year-on-year increase in revenue to RMB386.6 million for the six months ended 30 June 2026, driven by continued growth in its vocational education services. However, higher costs and expenses lim...

South China Vocational Education Group Sets Board Meeting to Approve Interim Results

Aug 14, 2026

South China Vocational Education Group Company Limited has scheduled a board meeting for August 26, 2026, to review and approve its unaudited interim results for the six months ended June 30, 2026. The board will also consider the publication of thes...

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: Oct 31, 2026

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