We initiate BUY with a TP of HK$19.40, which represents FY19F/20F PER of 46/35x and PEG of 1.29x to FY20F. We reckon that the stock should enjoy valuation premium over other HK-listed education stocks given its low policy risk and strong balance sheet. Positive drivers for CEE includes faster-than expected expansion of school network and M&As.
Notes: The information above is for reference only. Investment involves risk, please seek for professional advice before making investment decisions.