Strong ADvTech H1 Earnings – JSE: ADH Share Price Reignites Long-Term Uptrend
ADvTech’s strong earnings and strategic expansion have reignited momentum in its multi-year uptrend, with investors watching key technical..
Quick overview
- ADvTech has experienced a significant uptrend since 2021, with stock prices increasing over 600% to R35.70 by early 2025.
- The company's strong fundamentals, including robust student enrolments and disciplined financial management, have driven double-digit growth in sales and earnings.
- ADvTech's expansion into new African markets and investment in AI-driven educational tools further enhance its growth outlook.
- A breakout above the 50-week SMA could signal the continuation of the larger uptrend and potential new record highs.
ADvTech’s strong earnings and strategic expansion have reignited momentum in its multi-year uptrend, with investors watching key technical levels for confirmation of further upside.
Multi-Year Growth Story
ADvTech has been in a powerful uptrend since 2021, climbing more than 600% from around R6 to R35.70 by early 2025. After pulling back below R30 earlier this year, the stock found firm support at key technical indicators, suggesting the broader uptrend may now be resuming following the latest half-year earnings release.
ADHJ Chart Monthly – The 20 SMA Held As Support
Strong Fundamentals
Robust student enrolments and disciplined financial management drove double-digit growth in sales, earnings, and cash flow. The declared dividend underlines management’s confidence in long-term growth, while expansion into new African markets and investment in AI-driven educational tools further strengthen the company’s outlook. ADvTech continues to cement its role as the leading private education provider on the continent.
ADvTech H1 2025 Interim Results: Strong Growth Across Divisions
Group Performance
- Revenue rose 10% to R4.68 billion (2024: R4.27 billion), supported by a 13% increase in the education division.
- Operating profit increased 14% to R982 million (2024: R865 million), with margins improving to 21.0% (2024: 20.2%).
- Education division operating profit climbed 15%, with margin strengthening to 23.8% (2024: 23.5%) despite higher costs from investments in AI-driven tools, benchmarking, and student systems.
- Normalised earnings rose 16% to R620 million, with EPS up 16% to 113.0 cents.
- Trade receivables grew by just 3% versus revenue growth of 10%, while loss allowances decreased to R488 million (2024: R494 million), reflecting stronger collections.
- Operating cash flow advanced 18% to R2.3 billion, with R327 million in capex focused on expanding existing sites.
Dividend Declaration
- Interim dividend declared: 45.0 cents per share (2024: 38.0 cents).
Schools South Africa
- Revenue increased 11% to R1.72 billion (2024: R1.56 billion), driven by broad-based enrolment growth.
- Operating profit rose 12% to R354 million (2024: R316 million).
- Operating margin improved to 20.6% (2024: 20.3%) on scaling benefits.
Rest of Africa Expansion
- Revenue jumped 31% to R281 million (2024: R214 million), with operating profit up 34% to R83 million (2024: R62 million).
- Operating margin expanded to 29.4% (2024: 28.7%).
- Growth supported by strong enrolments and the November 2024 acquisition of Flipper International School.
- Construction of the next phase of Crawford International School (Kenya) to be completed by August 2025.
- International enrolment now totals nearly 12,000 students across three countries.
- Recently announced acquisition of Regis Runda School in Nairobi (capacity: 2,000 learners) for R172 million will further expand the group’s footprint.
Technical Outlook – 50 SMA Acting As Resistance on the Weekly Chart
The share price has consistently held the 20-month SMA (gray) as support, with ADHJ closing at R33 yesterday. However, buyers face a hurdle at the 50-week SMA (yellow), which has capped gains since May. A decisive breakout above this level would confirm the continuation of the larger uptrend and set the stage for new record highs.
Conclusion: ADvTech’s combination of solid fundamentals, growth-driven strategy, and supportive technical backdrop make it a compelling stock to watch. A move beyond the 50-week SMA could signal the next significant rally phase in its ongoing multi-year advance.
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