China Foreign Exchange Group (0382.HK) announced the acquisition of 100% equity in Guangdong Chinese Business Technical School, with a total consideration of 150 million yuan, to be paid with its own funds. This is Zhonghui's second vocational education acquisition project after the acquisition of high-quality vocational education schools in Sichuan Province in December 2020.
Guangdong Chinese Business Technical School is a secondary vocational school, which was approved by the Ministry of Labor and Social Security of Guangdong Province in 2007. At present, the school has 13 major majors, including early childhood education, medical marketing, beauty care, e-commerce, accounting and marketing. The total number of students in the school was about 5400 in the 2021Universe 22 academic year, with a compound annual growth rate of 57 per cent for three years (from fiscal year 1920 to fiscal year 22nd).
China Merchants International believes that the new merger and acquisition of Zhonghui Group will lead to increased profits and synergy with existing Guangdong schools. Although the deal is small, the merger will help ease some investors' policy concerns about mergers and acquisitions.
Huaxi Securities believes that the significance of this acquisition is to lay out secondary vocational schools and enjoy the growth dividend of the vocational education market; to thicken the performance of listed companies, it is estimated that the income / profit will be increased by 4.6% / 5.1% respectively in fiscal year 21 / 22; to provide students for higher vocational schools, it is estimated that the conversion rate of future graduates to higher vocational education is expected to reach more than 50%; and maintain the buy rating of Zhonghui Group.
Guangdong Chinese Business Technical School is a secondary vocational school, which was approved by the Ministry of Labor and Social Security of Guangdong Province in 2007. At present, the school has 13 major majors, including early childhood education, medical marketing, beauty care, e-commerce, accounting and marketing. The total number of students in the school was about 5400 in the 2021Universe 22 academic year, with a compound annual growth rate of 57 per cent for three years (from fiscal year 1920 to fiscal year 22nd).
China Merchants International believes that the new merger and acquisition of Zhonghui Group will lead to increased profits and synergy with existing Guangdong schools. Although the deal is small, the merger will help ease some investors' policy concerns about mergers and acquisitions.
Huaxi Securities believes that the significance of this acquisition is to lay out secondary vocational schools and enjoy the growth dividend of the vocational education market; to thicken the performance of listed companies, it is estimated that the income / profit will be increased by 4.6% / 5.1% respectively in fiscal year 21 / 22; to provide students for higher vocational schools, it is estimated that the conversion rate of future graduates to higher vocational education is expected to reach more than 50%; and maintain the buy rating of Zhonghui Group.