Transfer of Coverage on Edvantage Group; Cutting FVE to HKD 6.10

We transfer coverage and take a fresh look at Edvantage Group, leading to a cut in our fair value estimate to HKD 6.10 from HKD 13.00 per share. The cut is attributable to lower growth and margin expectations. We keep our narrow moat and stable moat trend rating. The shares are trading at about a 60% discount to our fair value estimate due to negative sentiment toward the education sector, which we think is not warranted.