China Education Sector: Recent Share Price Correction Creates Buying Opportunity

Share prices of the three higher education names under our coverage, namely, China Education Group, or CEG; China New Higher Education, or CNHE; and Edvantage, have pulled back 40%-45% since end-January. The three are currently trading around 40%-55% of our fair value estimates. We think the recent share price correction creates attractive buying opportunities. Among the three, we prefer CEG for its established reputation as a leader in vocational education.