Core Viewpoint - The stock price of China Education Group (00839) has dropped over 8%, currently at 3.33 HKD, with a trading volume of 184 million HKD, following a report from HSBC regarding the approval of a peer company's school transformation into a profit-making institution [1] Group 1: Company Performance - China Education Group's stock price recently increased due to the approval of a school under its peer, YuHua Education (06169), to transform into a profit-making institution [1] - HSBC maintains a "Hold" rating for China Education Group, raising the target price from 2.75 HKD to 3.5 HKD, indicating that despite recent stock price increases, the valuation remains low [1] Group 2: Industry Outlook - The approval process for transforming schools into profit-making institutions may be accelerating, but it is complex and time-consuming, involving multiple departments, with progress varying by region [1] - HSBC expresses optimism regarding the transformation progress of YuHua Education's schools, which slightly improves the industry outlook [1] - Short-term profit margins for China Education Group are under pressure, and potential revenue growth may slow down, along with a suspension of dividends, which could limit further stock price increases [1]
港股异动 | 中教控股(00839)尾盘跌超8% 同业学校获批转盈利性 汇丰称公司旗下学校尚未有实质进展