Citi raises earnings forecast for CHINA EAST EDU, maintains target price of 7.8 yuan with a "Buy" rating

Citi released a report stating that based on the acceleration of operational momentum and improved profit outlook, it has revised the financial model for CHINA EAST EDU (00667.HK) for the years 2025 to 2027. This adjustment reflects the excellent performance in enrollment growth, as well as the 15-month vocational courses exceeding initial targets, coupled with strict cost control and a favorable product mix shifting towards high-margin services, resulting in profit expansion exceeding expectations.

The bank has raised its revenue forecasts for CHINA EAST EDU for the years 2025 to 2027 by 0.6%, 1%, and 1.1%, respectively, while net profit forecasts have been increased by 10.6%, 4.6%, and 4.7%. However, the bank maintains a target price of HKD 7.8, believing that the company's strong execution capabilities are largely already anticipated, and maintains a "Buy" rating