China New Higher Education Reports In-Line Fiscal 2022 Results; Raises Dividend

China New Higher Education’s fiscal 2022 results are in line with our expectations. Notably, it raised its final cash dividend, translating into a 50% full-year payout ratio inclusive of its interim dividend. CNHE positions itself as a utility stock that provides stable income returns to investors, so we expect CNHE to maintain its 50% dividend payout ratio. We keep our fair value estimate of HKD 5.30 and CNHE looks attractive, particularly as it currently trades at an implied 9% dividend yield and 52% discount to our fair value estimate.