EQS-News / 22/04/2020 / 10:28 UTC+8
For immediate release April 21, 2020
(Stock code: 2001.HK [1])
CMS International Reiterated BUY on China New Higher Education Group
Target Price revised up to HKD4.9
(Hong Kong, April 21, 2020) China New Higher Education Group Limited ("China
New Higher Education", together with its subsidiaries, the "Group"; stock
code: 2001.HK) is pleased to announce that the counterparties and the Group
have entered into a settlement agreement regarding the proposed acquisition
of Xinjiang School. RMB100mn has already been received by the Group, the
remaining shall be paid by the counterparties within 100 days. Therefore,
China Merchants Securities International states that the Group maintains the
"Clean Slate" story taking hold for FY20/21E, reiterate BUY, target price
revised up to HKD4.9.
China Merchants Securities International stated in its report that after the
Group received the positive judgement from Xinjiang High Court in favour of
the Group's claims in December 2019, the counterparties approached the Group
to enter into a settlement agreement. The counterparties agreed to pay back
the Group's prepayments for the proposed acquisition, amounting to
approximately RMB137 million. Of which, RMB100mn has already been received
by the Group, with the remaining should be paid by counterparties within 100
days.
China Merchants Securities International believes this announcement wraps up
the termination of Xinjiang School acquisition, which has been a drag on the
Group's share price since October 2018. This settlement resolution is faster
than expected. China Merchants Securities International maintains its stance
that the Group to enjoy a "Clean Slate" for 2021, with increasing investor
appreciation, and likely to resulting in re-rating up, to a level more
in-line with its peers. In light of this positive development and another
step closer to their "Clean Slate" view, it upgrades the Group's TP from
HKD4.0 to HKD4.9(+22.5%), potential rising 54.6% comparing with the current
share price, re-rating up forward P/E multiple from 10x to 12x.
- End -
About China New Higher Education Group Limited:
China New Higher Education Group Limited is a leading private formal higher
education group in China with 20 years of education industry experience,
specializing in providing higher education which focuses on applied
sciences. The Group endeavors to help each student maximize their potential
and live their life to the fullest. Since 2009, the Group has been operating
schools in different provinces and regions, and its current school network
covers 7 provinces in China, including Yunnan, Guizhou, Hubei, Heilongjiang,
Henan, Guangxi, and Gansu.
The Group provides high quality higher education in a wide selection of
fields in applied sciences. Its courses are designed to equip students with
practical and readily applicable skills, helping to prepare them for the job
market. As a leader in high-quality employment, the Group won the title of
the Top 50 National Employment of the MOE, with an average employment rate
of above 97%. The Group became a constituent stock of the Hang Seng
Composite Small Cap Index and the Hang Seng Consumer Goods & Services Index
in the Hang Seng Composite Index Series in August 2017, and was included as
a constituent stock of the MSCI China Small Cap Index in November 2017 and
included as a constituent stock of Shenzhen and Hong Kong Stock Connect in
March 2018.
This press release is distributed by Wonderful Sky Financial Group Limited
on behalf of China New Higher Education Group Limited.
For further information, please contact:
Wonderful Sky Financial Group Limited
Aileen Wang / Georgina Zhao
Tel: (852) 3970 2226/ (852) 3970 2236
Email: newhigheredu@wsfg.hk
Document: https://eqs-cockpit.com/c/fncls.ssp?u=AIGFBSJOTE [2]
Document title: CMS International Reiterated BUY on China New Higher
Education Group Target Price revised up to HKD4.9
22/04/2020 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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2: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=f83396b752d65fd505161ccc3bbcc114&application_id=1026787&site_id=vwd&application_name=news
(END) Dow Jones Newswires
April 21, 2020 22:28 ET (02:28 GMT)
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