China New Higher Education Earnings: Steady Growth, Higher Dividend; Keep Fair Value at HKD 5.30

China New Higher Education further raised its interim dividend following a decent fiscal first half (ending February 2023) that recorded steady revenue and earnings growth of 9.2% and 13.1%, respectively. The proposed interim dividend translates to a 47.6% payout ratio. We keep our full-year 50% payout ratio forecast, leading to a projected 9.5% dividend yield at the current price level. We believe the generous dividend can be maintained, given CNHE's steady performance and improving balance sheet. We increase our fiscal 2023 earnings estimate slightly to CNY 715 million from CNY 708 million. Our fair value estimate remains HKD 5.30, with 94% upside from its current share price.