Edvantage Group: Firing on All Cylinders

We maintain our narrow moat rating for Edvantage Group, with a new fair value estimate of HKD 7.8, which implies 18.7 times forecast fiscal 2021 price/earnings, compared with the peer average of 12.1 times. Although Edvantage is a smaller higher education provider compared with its ultra-large-scale higher education peers, we believe Edvantage should trade at a premium to its industry peers’ average given that we are confident in multiple catalysts that will continue to drive a CAGR of 24.1% earnings growth from 2019 to 2024.