Glonghui, November 28 | According to a research report published by Macquarie, China Education Holdings' annual revenue for fiscal year 2023 increased 18% to 5.6 billion yuan, 1.3% lower than the bank's expectations, in line with market expectations. The profit for the period reached 1.4 billion yuan, which was also lower than the bank's forecast of 2 billion yuan, which did not include impairment losses of 395 million yuan. Macquarie said that the total number of students enrolled in the 2023/24 academic year increased by 7%. Management sees that demand for international programs with higher tuition fees is still strong, so it is predicted that the company's revenue will increase by 14% in fiscal year 2024. Furthermore, it is believed that there is little risk of further impairment. The bank believes that the business of China Education Holdings is stable and sustainable, and that the policy and employment market conditions are beneficial to its business. It believes that the current valuation is underestimated, lowered the net profit forecast for the 2024 and 2025 fiscal years by 5% and 9%, and lowered the target price by 7% to HK$11.7, with a rating of “outperforming the market”.