[ET Net News Agency, 15 January 2020] BOCI raised its target price for China Education
Group (CEG)(00839) to HK$15.1 from HK$14.58 and maintained its "buy" rating.
CEG completed the acquisition of a 20% equity stake in Zhengzhou School. CEG's interests
in Zhengzhou School have increased to 100% post the recent transaction. The research house
said the 20% net profit represented about 3.5% net profit for CEG in FY2019. Consolidation
started on 10 January 2020.
BOCI retained its sales estimate and revised up net profit estimates by 2.2% in FY2020,
1.9% in FY2021, and 1.5% in FY2022. (KL)