HK Stock Movement | CHINA EDU GROUP (00839) Surges Over 5% Intraday as Institutions Highlight Steady Growth Excluding Impairment Impact

Stock News
Dec 02

CHINA EDU GROUP (00839) rose more than 5% intraday, and as of press time, it was up 3.85% at HK$2.97, with a turnover of HK$66.081 million. On the news front, a CLSA research report noted that the company's FY2025 revenue and profit increased by 11.9% and 0.8% year-on-year, respectively, in line with its guidance and previous profit forecast. The results were mainly affected by impairment losses at its Hainan school, while the absence of dividend distribution was also in line with expectations. Huaxi Securities added that the company's net profit attributable to shareholders was primarily impacted by a non-cash impairment of RMB 1.706 billion on goodwill and intangible assets related to the Hainan school. After adjusting for total items of RMB 1.774 billion (including RMB 1.706 billion in intangible asset impairment, RMB 17 million in exchange gains, and RMB 51 million in fair value changes of construction costs payable for school buildings), the bank estimated normalized net profit attributable to shareholders at approximately RMB 2.05 billion. The remaining goodwill on the books stands at RMB 909 million.

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