China YuHua Education Corp Ltd
06169: XHKG (HKG)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| HKD 7.80 | Yzvxql | Wrypxpnn |
China YuHua Education's Large Capital Expenditure and Lower Gross Margin Are Disappointing
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Business Strategy and Outlook
China YuHua Education used to be known for its complete coverage of kindergarten to university education. Following the deconsolidation of K-9 assets in 2021, YuHua moved closer to peers that only operate schools at higher education and secondary education level. However, YuHua’s secondary schools are academically focused and face higher regulatory risk compared with secondary vocational schools.