Focusing on improving teaching quality

■ CNHE reported FY8/21 revenue of Rmb1,497m, up 15.9% yoy, and net profit of Rmb568m, up 31.2% yoy, below our expectations because of slower top-line growth.
■ With the completion of student admissions for the 21/22 school year in Sep–Nov, total student enrolment in the new school year grew by 14.4% yoy, and the average tuition fee is expected to increase by 10.1% yoy.
■ Benefiting from the vocational education policy, CNHE set up five measures to improve teaching quality and tighten the connection between education and industry.
■ Reiterate Add with a new DCF-based TP of HK$5.8.