CHINA EDU GROUP (00839) surged nearly 6% again, bringing its cumulative post-earnings gain to nearly 15%. At the time of writing, the stock was up 5.7% to HKD 3.15, with a trading volume of HKD 29.15 million.
On the news front, CHINA EDU GROUP released its annual results on November 26. CICC noted in a research report that the company's FY2025 revenue grew 11.9% year-on-year to RMB 7.36 billion, largely in line with expectations. Adjusted EBITDA rose 10.5% YoY to RMB 4.17 billion, surpassing forecasts, primarily due to better-than-expected cost control. However, no dividend was announced for the fiscal year.
Huatai Securities highlighted that on November 5, the Guangdong Provincial Department of Education issued the "Supporting Documents for the Classification Management Reform of Existing Private Higher Education Institutions in Guangdong (Draft for Comments)," clarifying the main procedures for classification registration. This move is expected to lay the groundwork for the orderly advancement of classification management reforms for private higher education institutions in the province.
If CHINA EDU GROUP's institutions in Guangdong successfully complete for-profit registration, it could bolster sector sentiment and support valuation recovery.
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