GTHT released a research report stating that CHINA EAST EDU (00667), as a leading vocational skills training provider in China, continues to meet the strong demand for skilled labor in the market through its extensive national presence and brand strength. The firm forecasts the company's net profit attributable to shareholders for 2025-2027 at RMB 798 million, RMB 1.004 billion, and RMB 1.128 billion, with EPS of RMB 0.36, RMB 0.45, and RMB 0.51, respectively. Based on comparable company valuations, GTHT assigns a 20X PE multiple for 2026, deriving a target price of RMB 9.0 (approximately HK$9.9, assuming RMB 1 ≈ HK$1.1033) and maintains a "Buy" rating.

Key highlights from GTHT’s report include: - In H1 2025, the company reported a 10.2% YoY revenue growth, with gross margin expanding to 57.3%, reflecting both business expansion and cost control advantages. - Leveraging its brand influence in culinary arts, pastry, IT, and automotive services, CHINA EAST EDU is poised for both earnings growth and valuation upside.

**H1 2025 Performance Highlights:** - Revenue reached RMB 2.186 billion (+10.2% YoY). - Net profit attributable to shareholders rose 48.4% YoY to RMB 403 million, while adjusted net profit grew 49.5% YoY to RMB 416 million. - Gross margin improved to 57.3% (+4.3 ppts). - Sales/management/financial expense ratios stood at 22.47%, 10.79%, and 2.51%, down 0.94, 2.11, and 0.60 ppts YoY, respectively.

**Segment Performance:** - Culinary technology revenue: RMB 1.024 billion (+11.4% YoY), gross margin 60.5% (+5.2 ppts). - Pastry & Western cuisine revenue: RMB 182 million (+14.3% YoY), gross margin 60.4% (+6.6 ppts). - IT & internet technology revenue: RMB 367 million (-3.0% YoY), gross margin 57.6% (+3.5 ppts). - Automotive services revenue: RMB 492 million (+9.6% YoY), gross margin 54.7% (+0.6 ppts). - Fashion & beauty revenue: RMB 77 million (+90.2% YoY), gross margin 61.4% (+8.8 ppts). - Other business revenue: RMB 44 million (+18.2% YoY), gross margin -8.6% (+23.6 ppts).

**Operational Metrics:** - As of H1 2025, the company operated 234 schools/centers (+1 YoY) across nearly all mainland provinces and Hong Kong, including the acquisition of Shanxi Metallurgical Technician College. - Long-term course trainees averaged 134,100 (+4.9% YoY), accounting for 87.8% of total trainees. However, enrollment trends showed pressure, with 1-2 year/2-3 year/3+ year trainees changing +85.4%/-8.1%/-0.4% YoY. - New student enrollments rose 7.1% YoY to 83,500.

**Risk Factors:** Policy/compliance risks, FX management risks, and project investment risks.