CHINA EDU GROUP (00839) rose nearly 6% during the morning session, extending its post-earnings rally to approximately 15%. At the time of writing, the stock was up 5.70% at HK$3.15, with a trading volume of HK$517.901 million.
CICC recently released a research report stating that CHINA EDU GROUP's FY2025 revenue grew 11.9% year-over-year, broadly in line with expectations, while adjusted EBITDA increased 10.5% YoY, exceeding forecasts due to effective cost control. No dividends were declared during the period.
Considering more conservative projections for student enrollment and tuition fee growth, the firm lowered its FY2026 revenue and adjusted EBITDA estimates by 4% and 1% to RMB7.77 billion and RMB4.19 billion respectively. For FY2027, revenue and adjusted EBITDA are projected at RMB8.16 billion and RMB4.42 billion. Due to declining industry valuations, CICC reduced CHINA EDU GROUP's target price to HK$3.5 while maintaining its "Outperform Industry" rating.
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