Gelonghui, July 26, 丨 According to the China-Thailand International Development and Research Report, Zhonghui Group's (0382.HK) performance for the first three quarters of 2022 was in line with expectations, driven by volume and price. Revenue for the first three quarters was RMB 1.26 billion, an increase of 39.5% over the previous year; of this, revenue from non-academic vocational education was 53 million yuan, an increase of 57% over the previous year. The gross margin was 50.3%, an increase of 0.4 ppts over the previous year; there were about 78,000 students enrolled, an increase of 24.9% over the previous year; the admission situation for new students in the 2022/23 school year was optimistic. Among them, the total enrollment plan for the Chinese Business School was 10,900, an increase of 20.5% over the previous year. Up to now, the unified enrollment and special upgrade enrollment has completed the enrollment of 10,713 students in Guangdong Province, and all admissions have achieved a high score. Enrollment from outside the province continues. Tuition fees for new students in the 2022/23 academic year are expected to be increased by 3-5% and more than 5% for undergraduate and senior students, respectively, and about 5% for individual majors in middle school.
Zhonghui Group's ability to run schools has been further enhanced, highlighting brand benefits. Since the first batch of private institutions included in Guangdong Province's master's degree awarding project construction units, Huashang University was successfully approved as a doctoral program in Guangdong Province in June 2022; Sichuan City Vocational College ranked first in GDI Higher Vocational College (private) (2022) in the province and third in the country; the school ranked first in the growth rate of private colleges in Sichuan. Zhongtai International maintained Zhonghui Group's full-year revenue forecast of 1.64 billion yuan for fiscal year 2022, an increase of 30.8% over the previous year; net profit of 500 million yuan, and net profit CAGR of 24% for fiscal year 20-24. Corresponding to 7 times PE in fiscal year 2022, it continues to maintain the target price of HK$3.8 and the “buy” rating.
Zhonghui Group's ability to run schools has been further enhanced, highlighting brand benefits. Since the first batch of private institutions included in Guangdong Province's master's degree awarding project construction units, Huashang University was successfully approved as a doctoral program in Guangdong Province in June 2022; Sichuan City Vocational College ranked first in GDI Higher Vocational College (private) (2022) in the province and third in the country; the school ranked first in the growth rate of private colleges in Sichuan. Zhongtai International maintained Zhonghui Group's full-year revenue forecast of 1.64 billion yuan for fiscal year 2022, an increase of 30.8% over the previous year; net profit of 500 million yuan, and net profit CAGR of 24% for fiscal year 20-24. Corresponding to 7 times PE in fiscal year 2022, it continues to maintain the target price of HK$3.8 and the “buy” rating.