reports
Minsheng Education Group Company Ltd: 1 director bought
A director at Minsheng Education Group Company Ltd bought 1,996,000 shares at 1.315HKD and the significance rating of the trade was 53/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over t...
- Charles Wong Kok Min
- Julia Pan Mengyao
Education - Online K12 AST regulation is just a small issue for leadin...
Share prices of education stocks have been fluctuating lately due to the overhang from the final draft of the Private Education Promotion Law. Recently, a member of the Communist Party of China suggested the government should prevent private education companies from listing, using the VIE structure to strengthen government control and supervision of private education. However, we believe that this is a personal view and may not be the final version of the Private Education Promotion Law and the ...
- Charles Wong Kok Min
- Julia Pan Mengyao
MINSHENG EDUCATION (1569 HK) 3-page update – Price = US$100:-
UOB Kay Hian published this update on Minsheng Education (1569 HK) on 20th August to review the 1H19 results. Our 5-page update (including the 2-page disclaimer) contains forecasts for 2019, 2020 and 2021 for the company's key data, including net turnover, operating profit, EPS, PE ratio, PB ratio and ROE. Our slightly revised target price for Minsheng Education represents a prospective FY2020 PER of 15x and provides the justification for our maintained investment recommendation. For more inform...
- Charles Wong Kok Min
- Julia Pan Mengyao
Minsheng Education - 1H19: Results in line with expectations; one scho...
1H19 revenue and recurring net profit met 53% and 56% of our and consensus full-year estimates respectively. Revenue surged 66.4% yoy to Rmb526.4m, mainly driven by school consolidation while recurring net profit grew 43.6% yoy to Rmb235.4m. Recurring net margin declined 7.1ppt yoy to 44.7% on higher finance cost and lower government grants. Maintain BUY with a lower target price of HK$2.00, based on DCF valuation, implying 15x 2020 PE.
- Carol Dou Xiao Qin
- Charles Wong Kok Min
- Joyce Chan Pui Lai
- Julia Cheung Pui Man
- Julia Pan Mengyao
- Lee Yuk Kei
- Michael Cheung Ho Bun
- Oscar Jiang
- Robin Yuen
Greater China Daily: Tuesday, August 20, 2019
KEY HIGHLIGHTS CHINA Results CSPC Pharmaceutical Group (1093HK/BUY/HK$12.96/Target: HK$17.00) 1H19: Earnings grew strongly by 24.8% yoy; easing policy pressure. Inspur International (596 HK/BUY/HK$3.77/Target: HK$5.25) 1H19: Core profit in line; resilient growth from cloud service business. Minsheng Education (1569 HK/BUY/HK$1.35/Target: HK$2.00) 1H19: Results in line with expectations; one school consolidated, three more to go. Tongcheng-eLong (780 HK/BUY/HK$12.32/Target: HK$20.00) 2Q19: ...
- Arandi Ariantara
- Carol Dou Xiao Qin
- Charles Wong Kok Min
- Jacquelyn Yow Hui Li
- Julia Cheung Pui Man
- Julia Pan Mengyao
- Kader Farhan Bin Kader Ridzwan
- Kowit Pongwinyoo
- Lee Yuk Kei
- Leow Huey Chuen
- Michael Cheung Ho Bun
- Oscar Jiang
- Robin Yuen
- Singapore Research Team
- Thunya Sutavepramochanon
- Vincent Khoo Boo Aik
Regional Morning Notes - Tuesday, August 20, 2019
CHINA Results CSPC Pharmaceutical Group (1093HK/BUY/HK$12.96/Target: HK$17.00): 1H19: Earnings grew strongly by 24.8% yoy; easing policy pressure. Inspur International (596 HK/BUY/HK$3.77/Target: HK$5.25): 1H19: Core profit in line; resilient growth from cloud service business. Minsheng Education (1569 HK/BUY/HK$1.35/Target: HK$2.00): 1H19: Results in line with expectations; one school consolidated, three more to go. Tongcheng-eLong (780 HK/BUY/HK$12.32/Target: HK$20.00): 2Q19: Strong GMV growth...
AKRA PT AKR CORPORINDO TBK
01093 CSPC PHARMACEUTICAL GROUP LIMITED
TVO THAI VEGETABLE OIL PCL
6AH AUSNUTRIA DAIRY CORP LTD
BCH BANGKOK CHAIN HOSPITAL PCL
BST BERJAYA SPORTS TOTO BHD
SCGB SUNWAY CONSTRUCTION GROUP BH
01569 MINSHENG EDUCATION GROUP CO. LTD.
596 INSPUR INTERNATIONAL LTD
780 TONGCHENG-ELONG HOLDINGS LTD
- Charles Wong Kok Min
- Julia Pan Mengyao
Education - Online K12 AST regulations have minimal impact on leading ...
The long anticipated online K12 regulations have finally been announced, and remove some of the regulatory overhang on the K12 AST segment. We view the regulations as mildly negative as rules on teaching hours and prepaid fee collection are slightly more stringent than offline K12 AST. Similar to management guidance, we think both leading K12 AST players will be able to meet regulatory requirements and expect strong results to be announced next week. Excluding the post-K12 segment in the educati...
- Julia Pan Mengyao
Education - Investors still positive on China’s education sector on ...
On our recent marketing trip, investors agreed that the fundamental growth of education companies remains unchanged. However, the major concerns are the uncertainties ahead of the launch of the final draft of the Private Education Promotion Law. Our top picks are Minsheng and New Oriental. Maintain OVERWEIGHT on the sector.
- Charles Wong Kok Min
- Julia Pan Mengyao
Education - Opportunity to accumulate amid policy uncertainty.
We think recent developments in vocational education are encouraging. The anticipated upgrade of Nanchang Vocational College to university status supports management’s expectation of 20-23% yoy enrolment growth in vocational education, which represents 20% of total enrolment in 2018. However, investors are concerned about the ever-pending finalisation of the private education promotion law which we believe has less impact on the post-K12 segment. Our top picks remain Minsheng and EDU. Maintain...
- Charles Wong Kok Min
- Julia Pan Mengyao
Education - 2018 results wrap-up.
Major post-K12 operators reported in-line results for 2018 although gross margins were weak due to M&A activities. K12 AST players beat bottom-line estimates on the back of operating leverage from slower expansion of learning centres. For 2019, we expect stronger organic growth and further market consolidation for post-K12 operators and continued operating margin recovery for K12 AST players. We prefer EDU and Minsheng in their respective segments. Maintain OVERWEIGHT.
- Charles Wong Kok Min
- Julia Pan Mengyao
Education - Tight regulations behind K12 AST, maintain OVERWEIGHT.
EDU and TAL will report their quarterly earnings on 23 April and 25 April respectively. We think both players may outperform consensus estimates as EDU management has guided that its K12 AST revenue growth was strong at 45-50% yoy and operating margin would turn around. For TAL, we roll valuation to FY20 and upgrade TAL to BUY with a higher target price of US$43.00. Top picks are EDU and Minsheng Education for their relatively cheap valuations among peers. Maintain OVERWEIGHT.
- Charles Wong Kok Min
- Julia Pan Mengyao
Minsheng Education - Multiple growth drivers remain.
We met with Minsheng and remain positive on its growth prospects. We see healthy organic growth from its Dianchi College and Chongqing College, and consolidated growth from its acquired schools, especially Shandong College and Anhui Wonder University. Management guided 2019 revenue to grow 56% yoy to Rmb950m-1,000m and bottom line to grow 25% to Rmb430m-450m. Maintain BUY and target price of HK$2.50.
- Charles Wong Kok Min
- Daisy Chen
- Johnny Yum Chung Man
- Joyce Chan Pui Lai
- Julia Cheung Pui Man
- Julia Pan Mengyao
- K Ajith
- Ken Lee
- Lee Yuk Kei
- Robin Yuen
- Tham Mun Hon
Greater China Daily: Friday, March, 29, 2019
KEY HIGHLIGHTS CHINA Economics The Big Picture Not out of the woods. Sector Automobile 2019 EV subsidies slashed by 60-80%. Cut target prices of BYD, Yutong and CATL to HK$22.00, Rmb7.00 and Rmb40.00 respectively. Results Beijing Capital International Airport (694 HK/SELL/HK$7.40/Target: HK$6.70) 2018: Results In Line But Lower Earnings From Traffic Diversion Is Inevitable BYD Company (1211 HK/SELL/HK$47.10/Target: HK$22.00) 4Q18: Earnings and 1Q19 profit guidance miss estimates; cut ...
- Charles Wong Kok Min
- Daisy Chen
- Johnny Yum Chung Man
- Julia Cheung Pui Man
- Julia Pan Mengyao
- K Ajith
- Kader Farhan Bin Kader Ridzwan
- Ken Lee
- Lee Yuk Kei
- Napat Vorajanyavong
- Robin Yuen
- Stevanus Juanda
Regional Morning Notes - Friday, March 29, 2019
CHINA Sector Automobile: 2019 EV subsidies slashed by 60-80%. Cut target prices of BYD, Yutong and CATL to HK$22.00, Rmb7.00 and Rmb40.00 respectively. Results China Communication Services (552 HK/BUY/HK$7.28/Target: HK$9.19): 2018: Results in line; benefits from telecom capex rebound. China Mengniu Dairy (2319 HK/BUY/HK$27.95/Target: HK$33.00): 2018: Results in line; 2019 outlook reassuring. Update Minsheng Education (1569 HK/BUY/HK$1.70/Target: HK$2.50): Multiple growth drivers remain. INDON...
- Charles Wong Kok Min
- Julia Pan Mengyao
Minsheng Education - 2018: Results in line; one more acquisition annou...
2018 revenue grew 30% yoy to Rmb623m while adjusted net profit increased 28% yoy to Rmb333m (excluding share-based expenses and exchange gains), coming in within expectation. 2018 gross profit margin was 53.5%, down 4.8ppt yoy, due to an increase in the number of teachers as well as the drag from newly-consolidated schools. Minsheng also announced the new acquisition of Nanchang Vocational School. Maintain BUY. Target price: HK$2.50.
- Charles Wong Kok Min
- Julia Pan Mengyao
Education - Better options in other sub segments than K12 school opera...
The outlook for K12 private operators is gloomy pending the final version of the overwhelming changes to regulations. We think the outcome will surprise the market to the downside; nevertheless we have factored in the worst-case scenario and recommend investors stay on the sidelines. A better entry point would come after share price weakness if investors believe Wisdom’s management income method is valid. We recommend buying EDU or post-K12 operators like CEG and Minsheng. Maintain OVERWEIGHT.
- Charles Wong Kok Min
- Joyce Chan Pui Lai
- Julia Pan Mengyao
- Shaun Tan
Greater China Daily: Monday, March, 18, 2019
KEY HIGHLIGHTS CHINA Sector Education Better options in other sub segments than K12 school operators. Results Minsheng Education (1569 HK/BUY/HK$1.84/Target: HK$2.50) 2018: Results in line; one more acquisition announced. HONG KONG Results Kerry Properties (683 HK/HOLD/HK$31.95/Target: HK$31.30) 2018: Below expectations; unexciting guidance. TRADERS’ CORNER Sinopec Engineering (2386 HK): Trading Buy Range Asia Cement (743 HK): Trading Sell Range
- Charles Wong Kok Min
- Jonathan Koh
- Julia Pan Mengyao
- Kong Ho Meng
- Loke Pei Hao
- Shaun Tan
- Stevanus Juanda
- Thananchai Jittanoon
- Thunya Sutavepramochanon
Regional Morning Notes - Monday, March 18, 2019
CHINA Sector Education: Better options in other segments than K12 school operators. Results Minsheng Education (1569 HK/BUY/HK$1.84/Target: HK$2.50): 2018: Results in line; one more acquisition announced. HONG KONG Results Kerry Properties (683 HK/HOLD/HK$31.95/Target: HK$31.30): 2018: Below expectations; unexciting guidance. INDONESIA Strategy Investors Positive On Indonesia: Investors like Indonesia’s consumption story. Picks: HMSP, WTON, ASII, BMRI and UNTR. MALAYSIA Update Westports Holdin...
- Charles Wong Kok Min
- Julia Pan Mengyao
CHINA EDUCATION SECTOR: 47-page report - Price = US$500:-
UOB Kay Hian published this 47-page report on China Education Sector on 12th March 2019. The 52-page report (including the disclaimer) contains sections on:- * Valuation – see pages 4–5; * Industry Outlook – see pages 6–10; * China Education Group (839 HK): Initiation of research coverage – see pages 12–30; * Minsheng Education Group (1569 HK): Initiation of research coverage – see pages 31-47. For more information about UOBKayHian research on Asian companies (including bespoke pac...
- Charles Wong Kok Min
- Julia Pan Mengyao
Education - Solid higher education segment growth ahead, amid favourab...
We believe the expansion and consolidation of the sector will be hastened, benefitting from policy changes. Listed companies and private capital are encouraged to consider higher education investments under more favourable policies. Within the education sector, CEG (839 HK) and Minsheng (1569 HK) stand out due to their strong M&A capabilities backed by a solid acquisitions track record since 2017. We upgrade the education sector to OVERWEIGHT.
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