$CH XINHUA EDU (02779.HK)$ It was listed at an issue price o...

It was listed at an issue price of HK$3.26 in 2018. After rapidly rising to a high of HK$4.47, it fell to a low of 0.99 in 3 waves, and has now rebounded to 1.29. Gross margin has risen from 57% to over 65% over the past 5 years, but return on net assets has declined all the way from 20% to 11%, then rebounded to 12.2%.

Revenue, operating profit, and net profit (excluding 2017) have continued to grow over the past 5 years. The average net profit growth rate was 15%, and the growth rate fell to 9% in 2021.

The income statement shows that financing costs are very low, accounting for only 4.6% of operating profit, and the burden is very small.

The balance ratio has been at a very low level for 5 years. “Advance deposits and other receivables” are growing very fast, doubling every year from 2019 to 2021, from 488 million to 1.86 billion. Prepayments mainly include Hongshan University's payable balance of RMB 200 million. Other accounts receivable mainly include 840 million yuan prepaid to the School of Clinical Medicine and 800 million yuan of operating capital of Hongshan University. 200 million in intangible assets is not that high.

Over the past five years, net operating volume has accumulated 1.56 billion dollars, net investment has accumulated 2.65 billion yuan, and surplus is 1.1 billion yuan. The liquidity ratio remains good, currently at 4.77.

Currently, the price-earnings ratio is 4.8, the net profit ratio is 0.55, and the dividend rate is 5.6%. You can choose (⭐️⭐️).