China East Education Holdings Ltd

00667: XHKG (HKG)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	HK$5.16	Rhkyf	Wjftpbcm

China East Education Earnings: Lower Proportion of Enrollments in Three-Year Programs Disappoints

Cheng Wang

Aug 22, 2024

China East Education’s first half 2024 results are in line, but the proportion of new enrollments in three-year programs was lower than expected. We attribute the mix change primarily to competition from public schools. We leave our 2024 estimates largely unchanged but reduce our revenue assumptions by 6%-13% and net income estimates by 17%-27% for 2025-28 after assuming lower enrollments in three-year programs. As a result, we cut our fair value estimate by 16% to HKD 4.28 per share.

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