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We think JH Educational Technology (HKG:1935) is noteworthy because:

Investors are often led by the idea of ​​discovering the “next big thing.” Even if that means buying a “story stock” with no income, let alone profit. Sometimes these stories cloud the minds of investors, leading them to invest on emotion rather than on the fundamental merits of great companies. Loss-making companies can act like capital sponges. So investors should be careful not to throw bad money after bad money.

Despite being in an era of blue-sky investing in tech stocks, many investors are still adopting more traditional shares in profitable companies such as JH Teaching Technology (HKG:1935). Even if the company is highly valued in the market, investors agree that he will continue to provide JH Educational Technology with a means of adding long-term value to shareholders by generating consistent returns. prize.

Check out the latest analysis from JH Educational Technology.

Earnings per share for JH Educational Technology is increasing

In general, companies with increasing earnings per share (EPS) should see a similar trend in their share prices. That makes EPS growth an attractive quality for any company. JH Educational Technology achieved his EPS growth of 16% per annum over three years. If the company can keep it up, that’s a pretty good rate.

Top-line growth is an excellent indicator that growth is sustainable and coupled with high Earnings Before Interest (EBIT) margins is an excellent way for companies to maintain a competitive edge in the market. . The good news is that JH Educational Technology is profitable, with an EBIT margin of 53%, an improvement of 2.1 percentage points from last year. In our book, ticking those two boxes is a good sign of growth.

You can see the company’s revenue and profit growth trend in the chart below. Click on the graph to see exact numbers.

SEHK:1935 Earnings and Earnings History Aug 15, 2022

While profitability is on the rise, cautious investors always check their balance sheets as well.

Are JH Educational Technology insiders aligned with all shareholders?

Seeing insiders own a majority of outstanding shares is often a good sign. Their incentives are aligned with investors, making a sudden sale that impacts the stock price less likely. Therefore, those interested in JH Educational Technology will be pleased to know that insiders own a majority of the company’s shares, demonstrating their beliefs. Precisely because company insiders own his 75% of the company, their decisions have a significant impact on investments. This clearly provides an incentive for them to plan for the long term. This is a plus for shareholders with a sit and hold strategy. And their holdings are very valuable with a total of 4.1 billion CN at the current share price. That level of investment from an insider is nothing to sneeze at.

Is JH’s Teaching Technology Remarkable?

As I mentioned earlier, JH Educational Technology is a growing business and it’s encouraging. If that wasn’t enough, there’s also a pretty noticeable level of insider ownership.These two factors are big highlights for a company that should be a strong contender for your watchlist. Before you get too excited, though, we’ve discovered One Warning Sign from JH Educational Technology What you should know.

The great thing about investing is that you can invest in almost any company you want. But if you want to focus on stocks that have shown insider buying, here is a list of companies that have had insider buying in the last three months.

Please note that insider trading discussed in this article refers to reportable trading in the relevant jurisdiction.

This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Is not …