Core Viewpoint - The stock price of China Education Group (00839) has dropped over 8%, currently at HKD 3.33, with a trading volume of HKD 184 million, following a recent rise attributed to the approval of a peer, Yuhua Education (06169), to transform its schools into profit-making institutions [1] Group 1: Company Performance - China Education Group's stock price fell by 8.01% as of the latest report [1] - The trading volume reached HKD 184 million, indicating significant market activity [1] Group 2: Industry Insights - HSBC's report suggests that the recent rise in stock price was influenced by Yuhua Education's approval for school transformation, which may indicate a faster approval process for profit-making school transformations in the industry [1] - The approval process for such transformations is complex and time-consuming, involving multiple departments, and progress may vary by region [1] - Despite the optimistic outlook for Yuhua Education, China Education Group has not made substantial progress in its own school transformations [1] Group 3: Financial Outlook - HSBC maintains a "Hold" rating for China Education Group, raising the target price from HKD 2.75 to HKD 3.5, reflecting a belief that the stock's valuation remains low enough to prevent further declines [1] - Short-term profit margins are under pressure, and revenue growth may slow down, compounded by a suspension of dividends, which could limit further stock price increases [1]
中教控股尾盘跌超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