China East Education: 2023 May Be Disappointing but 2024 Is Promising

We think China East Education’s 2023 results are likely to fall short of our expectation amid a challenging economy that is hurting demand for its short-term programs as the outlook for jobs remains weak. As such, we lower our average student enrolment growth assumption to 3% from 5% year on year. We also reduce our average tuition fee growth forecast to 2% from 4%. This results in a 10% cut in our net income estimate to CNY 349 million for 2023, down 5% year on year.