China East Education Rises Nearly 4% as Core Profitability Improves; Broker Sees Seasonal Trading Opportunity

Stock News
04/24

CHINA EAST EDU (00667) gained nearly 4%, rising 2.91% to HK$5.29 by the time of writing, with a turnover of HK$7.93 million. The company recently disclosed its 2025 results, with Citigroup noting that the performance confirmed a recovery. Adjusted net profit increased by 50.9% year-on-year to RMB792 million, reaching the upper end of the profit forecast range. Although this figure was 3.6% below the bank's projection of RMB822 million, the gap was entirely attributable to non-operating items and unrelated to margin performance. Revenue for the period rose 12.1% to RMB4.616 billion, exceeding the bank's forecast of 10% and management's guidance. Gross margin expanded by 3.9 percentage points to 55.3%, indicating an improvement in core profitability. The actual dividend payout ratio was approximately 76%. Guosen Securities highlighted that, against the backdrop of expectations for boosting domestic demand, it remains optimistic about education sectors that enhance employment. Taking into account seasonal operational characteristics, the broker recommends focusing on demand-driven leaders such as Action Education for corporate training and CHINA EAST EDU for blue-collar vocational skills training. Additionally, it suggested watching for potential seasonal trading opportunities related to personalized tutoring services offered by Xueda Education as the college entrance exam countdown enters its final stretch.

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