In today’s briefing:
- China Education Group (839 HK): Impressive 1H22 Result, Positive Takeaways from Call
- Donki: New Formats, More Growth
China Education Group (839 HK): Impressive 1H22 Result, Positive Takeaways from Call
- China Education Group (839 HK) demonstrates resilience amid market concerns on policy uncertainties by posting a 40.5% growth in 1H22 reported net profit and 20.1% growth in adjusted net profit.
- Higher education segment saw 44% profit growth and strengths will sustain into 2H22. Weaker secondary vocational and global education segments will witness a sharp recovery, based on latest application statistics.
- CEG has secured increase in tuition and quota in the coming school year, and this will boost FY23 outlook. It opts for an Rmb500m buyback, instead of paying interim dividend.
Donki: New Formats, More Growth
- PPI has begun roll out of new, specialty food stores designed to slot into a variety of shopping malls.
- On the surface, these stores look like mini-Don Quijote stores, emphasising low prices and a dazzling density of product, but focused on sweets, liquor, cosmetics, or a combination.
- Expansion will help reach new customers, reduce the expense of opening new stores, and help with building scale for private brands.
Before it’s here, it’s on Smartkarma
