AMTD Research | Edvantage (382.HK): Fundamental Growth drives Stock Outperformance, Reiterate Buy

We have published a Research Report on Edvantage (382.HK, Buy), raising our Earnings Estimates and Target Price.

Edvantage (382.HK) has demonstrated its consistent execution track record since listing and we believe will continue to drive the stock’s performance.  We are revising upwards our FY21E-FY23E earnings estimates by 8-17% and our target price by 38% to HK$13.72/sh on the back of its recent M&A and solid 1QFY21 results.

For more details, please see our full report attached.

Proven Execution Track Record will drive Stock Performance

• We are raising Edvantage’s FY21E-FY23E net profit estimates by 8-17% to factor in the contributions from recent acquisition of Urban Vocational College of Sichuan, as well as the strong 1QFY2021 results.
• As a result, we have also raised our Target Price by ~38% to HK$13.72/sh.
• We believe the company is continuing to build its execution track record since its listing on the HKEX in 2019, which will drive a continual positive re-rating in the stock.
• Over the past 12 months, the company has started building out its Xinhui Campus in Jiangmen, acquired Urban Vocational College of Sichuan and also completed the branding change into the independent Huashang College which will result in royalty fee savings.