Mapleleaf Edu (1317.HK): Accelerating the School`s Expansion with Asset-light Mode February 7, 2018

Summary of Investment

  • Benefiting from educational consumption upgrading, there is large room for increase of the number of students and tuition;
  • The asset-light mode is accelerating the school`s expansion, making it ranking top in the international education industry;

7 feb

Investment Rating

There is still huge room for rise of the continuous increase of the number of enrolled students and tuition brought by educational consumption upgrading, providing the result growth with a strong driving force. Moreover, share allotment financing will accelerate the school expansion of the Company around the globe, resulting in share dilution. But the influence will be small. We expect the net profit of the Company in year 2018-2019 attributable to the parent company will be RMB515 million and RMB652 million, respectively, equivalent to EPS of RMB0.35/share, RMB0.44/share, respectively, and PE of 22/17times, respectively. Target price 11.3HKD and rating Accumulate is given. (Closing price as at 5 Feb 2018)

About the author

Profile photo of Wang Yannan

Wang Yannan
Phillip Securities (HK)

Graduated from the University of Science and Technology of China with a Masters degree in Management and major in Financial accounting and Economics throughout her academic study.

Currently Covering Environmental Protection and New Energy sectors as an analyst in Phillip Securities and focus on the macro policy,industry and fundamentals to explore the investment value.

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