GLONGHUI, August 28 | Guolian Securities released a research report covering Chunlai, China for the first time, and gave a “buy” rating. The DCF absolute valuation method measured the company's value of HK$8.54 per share. Referring to the company's growth, location advantages, and Hong Kong Stock Connect expectations, we gave the company 0.6 times PEG in 2024, corresponding to 12 times PE, with a target price of HK$8.73, corresponding to the HKD exchange rate of 0.9204. According to the research report, China Chunlai is the leading provider of high-quality higher education in central China, and the company's growth is expected to be relatively stable. As the profitability of the company's schools progresses steadily, it is believed that the company's policy risk valuation discounts are expected to narrow, and the company's valuation is expected to continue to recover. The current market price is underestimated compared to the company's steady growth. According to the research report, the company's school divisions are in Henan, Hubei, and Jiangsu, and it is the largest higher education provider in central China. As of the end of February 2023, the company operates 4 schools in Henan and 2 schools in Hubei, and is in the process of acquiring the rights of the organizer of a school located in Jiangsu. As of the end of February 2023, the number of students enrolled in the company was 113,900, with a registration rate of over 96% for 3 consecutive years, and an employment rate of 91.4% in 2021/2022, which is higher than the national average. In addition, Guolian Securities predicts that the company's operating income for 2023-2025 will be 14.97/17.30/2,069 billion yuan, a year-on-year growth rate of 14.38%/15.50%/19.60%, a 3-year CAGR of 16.47%, net profit of 6.71/8.04/959 million yuan, a year-on-year growth rate of 21.58%/19.74%/19.26%, and EPS of 0.56/0.67/0.80 per share, and a 3-year CAGR of 20.19%.