Skillful Craftsman Education Technology Limited (EDTK) | Investment Case

1. Company Snapshot

1.a. Company Description

Skillful Craftsman Education Technology Limited provides vocational online education and technology services to college students and graduates in the People's Republic of China.The company's education services cover a range of subjects, including vocational, continuing, basic, and higher education.It operates three education platforms, including the Lifelong Education Public Service Platform that offers approximately 200 courses; Vocational Training platform, which provides 642 courses covering mechanics, electronics, auto repair, and construction subjects; and Virtual Simulation Experimental Training platform that offers 12 experimental programs.

The company also offers technology services, including software development and maintenance, hardware installation, and testing and related consulting and training services; and cloud services for private companies, academic institutions, and government agencies.In addition, it provides financial education services through financial investment educational platform, which offers global securities market, basic securities knowledge, fundamental analysis, and technical analysis courses; and flexible employment service by providing recruitment outsourcing services for employer's permanent staff hires.The company was founded in 2013 and is headquartered in Wuxi, the People's Republic of China.

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1.b. Last Insights on EDTK

Skillful Craftsman Education Technology Limited's recent performance was driven by the announcement of a new app, "Assistant", aimed at enhancing users' communication and interpersonal skills. This move aligns with the company's new mission to develop AI-based products and services. The app leverages the company's expertise in AI and education, marking a significant step in its digital transformation. This development is expected to boost the company's growth prospects. The company's focus on AI-driven educational solutions positions it well in the evolving ed-tech landscape.

1.c. Company Highlights

Last Price	0.99
Change Percentage	2.58%
Open	0.99
Previous Close	0.97
Market Cap ( Millions)	16
Volume	3066
Year High	1.2
Year Low	0.8
M A 50	1.05
M A 200	1.01

FCF Yield	-25.32%
Dividend Yield	0.00%
ROE	-16.90%
Debt / Equity	5.10%
Net Debt / EBIDTA	18.49%
Price To Book	1.15
Price Earnings Ratio	-5.29
Price To FCF	-3.95
Price To sales	17.74
EV / EBITDA	-5.48

2. Transcript Summary

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3. NewsRoom

Skillful Craftsman Education Announces New App

Jun -16

Source: globenewswire.com

Skillful Craftsman Education Announces New Business Initiatives

May -19

Source: globenewswire.com

Skillful Craftsman Education Announces Key Hires for New Business Expansion Initiatives

May -12

Source: globenewswire.com

EDTK Announces Business Plans to Expand Into New Market and Offer Free Online Trainings to Attract Customers

Nov -04

Source: globenewswire.com

Skillful Craftsman Education Technology Limited Announces Collaborative Agreement of Training Foreign Nurses to Meet Registered Nurses Demand in Singapore

Aug -30

Source: globenewswire.com

EDTK Stock: Why It Increased Today

Oct -14

Source: Pulse2

Skillful Craftsman Provides Update on Chinese Central Authorities' Issued Opinions on Promoting the High-quality Development of Modern Vocational Education

Oct -14

Source: GlobeNewsWire

Skillful Craftsman Announces Director Change

Aug -16

Source: GlobeNewsWire

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.99%)

6. Segments

Online VIP Membership

Expected Growth: 15.2%

Growing demand for premium educational resources, increasing adoption of online learning, and the need for expert mentorship drive the growth of Online VIP Membership. The exclusivity and priority customer support offered by Skillful Craftsman Education Technology Limited will attract high-end customers, fueling market expansion.

Online SVIP Membership

Expected Growth: 15.4%

Growing demand for online learning, increasing need for skill development, and rising adoption of premium educational content drive the growth of Online SVIP Membership. The exclusivity and personalized approach of the membership program also contribute to its attractiveness.

Technical Services

Expected Growth: 12.5%

Growing demand for digitalization in educational institutions, increasing need for IT infrastructure and network management, and rising adoption of digital resources drive the growth of Technical Services from Skillful Craftsman Education Technology Limited.

7. Detailed Products

Online Courses

Skillful Craftsman Education Technology Limited offers a wide range of online courses in various fields such as programming, data science, and digital marketing. These courses are designed to equip learners with industry-relevant skills and knowledge.

AI-powered Learning Platform

The company's AI-powered learning platform provides personalized learning experiences for students, using machine learning algorithms to adapt to individual learning styles and abilities.

Virtual Labs

Skillful Craftsman Education Technology Limited offers virtual labs that provide a simulated environment for students to practice and experiment with various technologies and tools.

Career Services

The company provides career services, including resume building, interview preparation, and job placement assistance, to help learners achieve their career goals.

Corporate Training

Skillful Craftsman Education Technology Limited offers customized corporate training solutions for businesses, helping them upskill and reskill their employees.

8. Skillful Craftsman Education Technology Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes is moderate due to the presence of alternative education technology platforms, but Skillful Craftsman's unique features and high-quality content mitigate this threat.

Bargaining Power Of Customers

Customers have limited bargaining power due to the specialized nature of Skillful Craftsman's education technology products and services.

Bargaining Power Of Suppliers

Suppliers of educational content and technology have some bargaining power, but Skillful Craftsman's strong relationships and diversified supply chain mitigate this risk.

Threat Of New Entrants

The threat of new entrants is high due to the relatively low barriers to entry in the education technology market, but Skillful Craftsman's established brand and high-quality products provide a competitive advantage.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of established competitors in the education technology market, but Skillful Craftsman's unique value proposition and strong marketing efforts help to differentiate the company.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	34.03%
Debt Cost	3.95%
Equity Weight	65.97%
Equity Cost	2.31%
WACC	2.86%
Leverage	51.59%

11. Quality Control: Skillful Craftsman Education Technology Limited passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

QuantaSing

A-Score: 6.0/10

Value: 6.5

Growth: 8.6

Quality: 8.9

Yield: 5.8

Momentum: 5.0

Volatility: 1.3

1-Year Total Return ->

Meta Data

A-Score: 4.6/10

Value: 8.7

Growth: 4.0

Quality: 6.8

Yield: 0.0

Momentum: 6.0

Volatility: 2.0

1-Year Total Return ->

Skillful Craftsman Education Technology

A-Score: 4.5/10

Value: 7.0

Growth: 1.7

Quality: 4.9

Yield: 0.0

Momentum: 6.0

Volatility: 7.3

1-Year Total Return ->

Golden Sun Education

A-Score: 4.4/10

Value: 9.8

Growth: 1.8

Quality: 6.0

Yield: 0.0

Momentum: 4.5

Volatility: 4.3

1-Year Total Return ->

Genius Group

A-Score: 3.9/10

Value: 8.0

Growth: 1.9

Quality: 4.4

Yield: 0.0

Momentum: 7.5

Volatility: 1.7

1-Year Total Return ->

Jianzhi Education

A-Score: 3.0/10

Value: 7.0

Growth: 2.7

Quality: 3.2

Yield: 0.0

Momentum: 1.5

Volatility: 3.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

10.93%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

2.86%

Skillful Craftsman Education Technology Limited - KYG8211A1085

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on EDTK

1.c. Company Highlights

Lower Quality

Lower Growth

Stable Momentum

Average Growth

Less Volatile

Strong Momentum

Average Yield

Average Quality

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.99%)

6. Segments

Online VIP Membership

Expected Growth: 15.2%

Online SVIP Membership

Expected Growth: 15.4%

Technical Services

Expected Growth: 12.5%

7. Detailed Products

Online Courses

AI-powered Learning Platform

Virtual Labs

Career Services

Corporate Training

8. Skillful Craftsman Education Technology Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Skillful Craftsman Education Technology Limited passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.99$

Current Price

0.99$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA