Minsheng Education 1569

Minsheng Education 1569

Postby winston » Tue Aug 20, 2019 2:07 pm

not vested

Analysis:

The Group announced the interim result in 2019.

During the period, the revenue increased significantly by 66.4% to RMB 526 million, where the tuition fee and boarding fee were up by 67.3% and 56% respectively.

Although the adjusted net profit only rose by 2.5% to RMB 233 million, it is due to the sharp decline in the fair value of the equity investment.

The adjusted net profit excluding the change in the fair value of the equity investment was RMB 232 million, up by 38.9%.

Besides, the student enrollment was doing well, up by 13.7% to 74,450 compared to 2018.

The CAGR for three and a half year reached 39%.

Under the enrollment expansion by one million in higher vocational education, the student quotas for the undergraduate and junior programme rose by 7.3% and 27.9% respectively, which could serve as an indicator for the future.

Also, the Group will grow through acquisition. With RMB 753 million cash on hand and 15.8% interest-bearing debt to equity, the Group still has sufficient cash for acquisition.

Strategy:
Buy-in Price: $1.40, Target Price: $1.85, Cut Loss Price: $1.05

Source: Phillips
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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