Report
EUR 89.43
For Business Accounts Only
In our previous note, we discussed that Neuedu operated three private universities (Dalian, Chengdu, Foshan) in China with capacity utilization of over 90% in the past three years. Its three universities all have nearly 20 years of operation. We like Neuedu's long-established reputation of private higher education in IT-related fields. Of the three, Dalian University stands out in terms of ranking among private universities. Having said that, the average graduate salary was marginally better than the respective provincial average by low double-digit. The company is undertaking RMB 2.4 bn expansion plans to increase the campus capacity by 44% by 2023. The company is held by founders, Neusoft, Alps Alpine, PICC, and individual investors. We also provided updates with respect to the impact of COVID-19 in the first six months of the year, compared the company's financials with other listed peers and provided our thoughts on valuation.
In this note, we look at the IPO valuation range and the cornerstone investors. We are of the view that the company is fairly valued on valuation multiples, but with a strong line-up of domestic investors and the strong sentiments in Hong Kong IPO, we would participate in the deal.
Neuedu (东软教育) IPO - Fairly valued but quality domestic investors
Neuedu, a leading IT higher education service provider in China, started booking building to raise up to USD 134m in its Hong Kong listing.In our previous note, we discussed that Neuedu operated three private universities (Dalian, Chengdu, Foshan) in China with capacity utilization of over 90% in the past three years. Its three universities all have nearly 20 years of operation. We like Neuedu's long-established reputation of private higher education in IT-related fields. Of the three, Dalian University stands out in terms of ranking among private universities. Having said that, the average graduate salary was marginally better than the respective provincial average by low double-digit. The company is undertaking RMB 2.4 bn expansion plans to increase the campus capacity by 44% by 2023. The company is held by founders, Neusoft, Alps Alpine, PICC, and individual investors. We also provided updates with respect to the impact of COVID-19 in the first six months of the year, compared the company's financials with other listed peers and provided our thoughts on valuation.
In this note, we look at the IPO valuation range and the cornerstone investors. We are of the view that the company is fairly valued on valuation multiples, but with a strong line-up of domestic investors and the strong sentiments in Hong Kong IPO, we would participate in the deal.
Underlying
Neuedu
Provider
Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Ke Yan
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