EQS-News / 27/02/2020 / 15:17 UTC+8
Guosheng Securities initiate coverage on CNHE (2001.HK) with "Buy" Rating
and Target Price of HK$5.12
Guosheng Securities initiated coverage on CNHE (2001.HK) with a "Buy" rating
and target price of HK$5.12 and estimated 88% in share price growth.
Entitled "Focus on marginal improvements; Internally and Externally Sound:
Ready for Growth", the report by the securities firm points out that China
New Higher Education Group (CNHE) has regional advantages in provinces with
great potential that have low gross enrollment rate and higher student
participation in the national higher education entrance examination. The
Company's colleges have good integration of Industry and Education and
frequent cooperation between schools and enterprises, and higher than
average employment rates in China. Through its collectivized school
operation management, CNHE can replicate its successful education model in
new schools that the Company had acquired.
The report also indicates that the Company shows strong internal and
external growth, and all of its schools are expanding at a relative fast
pace; moreover, the Company has obtained the positive judgement in favour of
the Company's claims in Xinjiang School litigation in December 2019,
averting relevant prepayment provision risks.
CNHE enjoys competitive edges in such aspects as regional advantages,
integration of education combining industry experience, and capability of
collectivized school operation, and the graduate high employment rates help
the Company establish a positive brand. Expecting the Company's 15x P/E
ratio in 2020, steady and healthy endogenous growth and growing profit from
acquired schools, Guosheng Securities proposed a target price of HK$5.12 and
assigned it a "Buy" rating.
Document: http://n.eqs.com/c/fncls.ssp?u=TEBUBRHLVK [1]
Document title: Guosheng Securities initiate coverage on CNHE (2001.HK) with
'Buy' Rating and Target Price of HK$5.12
27/02/2020 Dissemination of a Marketing Press Release, transmitted by EQS
Group.
The issuer is solely responsible for the content of this announcement.
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1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=1baf06ff2826bb6f163c9c4676abeb85&application_id=984815&site_id=vwd&application_name=news
(END) Dow Jones Newswires
February 27, 2020 02:17 ET (07:17 GMT)
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