[ET Net News Agency, 9 October 2019] Goldman Sachs initiated coverage on China
Education Group (CEG)(00839) with a "buy" rating and a target price of HK$14.6.
The research house said CEG operates 9 higher education (HE)/vocational education
institutions across China, with combined enrollments of 169K as of August 2019, the
largest among its peers.
Goldman forecast private HE in China to grow to a TAM of US$26bn by 2025, expanding at a
7.8% CAGR in FY2018-25 on the back of improved HE gross enrollments, enhanced private
penetration and favorable policy tailwinds accelerating market consolidation.
It forecast an adjusted EBITDA CAGR of 20% in FY2019-22 and adjusted EBITDA margin to
grow to 60.5% in FY2022 versus 55.5% in FY2019. (KL)