China Education loses most in nearly 2 years on lower profit, dividend

SDM Education group

28/11/2023 02:45

** Shares of China Education Group Holdings Ltd  0839.HK 
drop 20.6% to HK$4.90, their lowest since November 2022
    ** Stock marks biggest intraday pct decline since January
2022, and is biggest pct loser in the Hang Seng Composite Index
 .HSCI 
    ** The vocational education services provider says its net
profit attributable to owners of the company plunged 25.2% YoY
to 1.38 bln yuan ($192.9 mln) for fiscal year ended August amid
an impairment loss, while revenue rose 18.1% YoY to 5.62 bln
yuan 
    ** Co recommends the payment of a final dividend of 0.1353
yuan per share, as compared with 0.3357 yuan a year ago
    ** Citi maintains "buy" rating, citing FY23 revenue in line
with consensus with gross margin seen to maintain current level
in short term 
    ** Hang Seng Composite Index  .HSCI  and Hang Seng Index
 .HSI  both slip 0.3%
    ** Stock down 50.9% YTD 

   ($1 = 7.1535 Chinese yuan)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))