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Results in line with healthy growth trend

■ China Education reported FY8/21 revenue of Rmb3,682m, up 37.5% yoy, and adjusted net profit of Rmb1,574m, up 48.3% yoy, in line with our expectations.
■ We expect FY8/22F revenue growth of 18% yoy, adjusted net profit growth of 21% yoy, and about 15% organic growth yoy in revenue and adjusted net profit in the next two years.
■ CEG achieved 24.4% yoy growth in student enrolment in its higher vocational education segment in the 21/22 school year.
■ CEG maintains its target of completing 2–3 M&A per year, and it expects to close a deal in Dec 2021.
■ Reiterate Add with a new DCF-based TP of HK$23.5.

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