Asia Ex-J Consumer/ Transport analyst

Valerie Law, CFA

Equity Capital Markets

Minsheng Education / Equity Capital Markets

<p>Minsheng Education Group Company Limited (MSE) is one of the latest educational company to have their IPO prospectus lodged with the Hong Kong Exchange. Together with four other companies: <a href="https://www.smartkarma.com/insights/wisdom-education-ipo-preview-tall-on-fees-short-on-margins" target="_blank">Wisdom Education International Holdings</a>, <a href="https://www.smartkarma.com/insights/china-new-university-ipo-preview-track-record-and-focus-attractive" target="_blank">China New University Group</a>, China Yuhua Education Corporation and Bojun Education Company, they make up the group of education-related stocks that will be listed on the Hong Kong Exchange. The deal size is estimated at USD 150 - 200m. In this insight, we hope to answer the following questions:</p><ul><li>How are their fees and margins compared to peers?</li></ul><ul><li>Where are the sources of near-term growth?</li></ul><ul><li>What are some risks that investors should be aware of?</li></ul><ul><li>What valuation should we be paying for MSE?</li></ul>

Minsheng Education Group Company Limited (MSE) is one of the latest educational company to have their IPO prospectus lodged with the Hong Kong Exchange. Together with four other companies: Wisdom Education International Holdings, China New University Group, China Yuhua Education Corporation and Bojun Education Company, they make up the group of education-related stocks that will be listed on the Hong Kong Exchange. The deal size is estimated at USD 150 - 200m. In this insight, we hope to answer the following questions:How are their fees and margins compared to peers?Where are the sources of near-term growth?What are some risks that investors should be aware of?What valuation should we be paying for MSE?

China Maple Leaf Educational Systems (1317 HK)

Minsheng Education IPO Preview: Fair on Fees, Tall on Margins