0654 GMT - China Education Group faces a challenging outlook due to weak student enrollment and low tuition fees, Morningstar analyst Cheng Wang writes in a note. The brokerage revises down its student enrollment and tuition fee assumptions, leading to a 6%-12% reduction in its net profit forecast for FY 2025 to FY 2028. The company struggles with challenges across regions. In Sichuan, a school encountered regulatory hurdles to raising tuition fees, the analyst notes. In Shaanxi, a secondary vocational school faced recruitment difficulties, while in Australia, policy changes aimed at reducing foreign students created additional headwinds, Morningstar adds. The brokerage lowers its rating from exemplary to standard. It cuts its target price for the stock by 10% to HK$10.40. Shares are last trading at HK$3.69.(jiahui.huang@wsj.com; @ivy_jiahuihuang)
(END) Dow Jones Newswires
November 28, 2024 01:54 ET (06:54 GMT)
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