Zhonghui Group (00382) remained active, rising 5 per cent in early afternoon, Zhitong Financial APP learned. The agency expects the industry's average income growth in fiscal year 23 to reach 20-25%, which is higher than expected. At the same time, industry valuations will continue to rise. As of press time, Zhonghui Group rose 4.56% to HK $2.75.
On June 29, Shen Wanhongyuan reported that we counted that the total enrollment places of the six Hong Kong-listed private higher education companies in the financial year 22 up 23 increased by an average of 15%, an increase of 6 percentage points year on year. Taking into account the growth forecast of average tuition fees of about 5%, the industry's average income growth rate is expected to reach 20-25% in fiscal year 23, which is higher than we had expected. Therefore, maintain the optimistic rating of the higher vocational education sector of Hong Kong stocks, and recommend: Zhonghui Group (00382) and other higher education stocks. China Merchants also expressed sustained policy support for higher education, especially vocational education, this week. The steady increase in enrollment and tuition fees has promoted the steady growth of higher education companies. Current valuations are still low compared to earnings, cash flow or potential cash dividends. Valuations are expected to continue to rise.