Asia Ex-J Consumer/ Transport analyst

Valerie Law, CFA

Equity Capital Markets

Wisdom Education / Equity Capital Markets

<p>A number of educational companies will be listed on Hong Kong Stock Exchange and Wisdom Education International Holdings Company Limited (WE) is one of them. The deal size is likely to be around USD 150m. China New University (which we covered earlier) provides University-level education, while WE provides education starting from K12 to High School. Through this insight, we hope to address the following questions:</p><ul><li>How are its fees and margins compared to peers?</li><li>Can we continue to see growth in their enrollment and tuition fees?</li><li>How will the group manage related-party transactions and administrative oversights in future?</li><li>What valuation should we be paying for WE?</li></ul>

A number of educational companies will be listed on Hong Kong Stock Exchange and Wisdom Education International Holdings Company Limited (WE) is one of them. The deal size is likely to be around USD 150m. China New University (which we covered earlier) provides University-level education, while WE provides education starting from K12 to High School. Through this insight, we hope to address the following questions:How are its fees and margins compared to peers?Can we continue to see growth in their enrollment and tuition fees?How will the group manage related-party transactions and administrative oversights in future?What valuation should we be paying for WE?

Wisdom Education IPO Preview: Tall on Fees, Short on Margins