Edvantage Group's Strong Growth Supported by Multiple Catalysts

We maintain our narrow moat rating for Edvantage Group and revise up our fair value estimate to HKD 13.00. Our upward revision mostly reflects a higher estimate of earnings growth during the next five years mainly due to solid growth from its new campus expansion and consolidation of the two new schools from Sichuan that were acquired in December 2020. We also expect a better gross margin and operating margin thanks to the successful spin-off from Guangdong University of Finance and Economics into private universities in January 2021.