China YuHua Education Corp Ltd

06169: XHKG (HKG)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	HKD 2.90	Dddhnm	Slgqxffb

Transfer of Coverage on China YuHua Education; Cutting FVE to HKD 3.06

Cheng Wang

Jun 30, 2022

We transfer coverage and take a fresh look at China YuHua Education, or YuHua, leading to a cut in our fair value estimate to HKD 3.06 from HKD 8.80 per share. The cut is attributable to lower growth and margin assumptions. We keep our narrow moat and stable moat trend rating. The shares are trading at about a 56% discount to our fair value estimate due to negative sentiment toward the education sector, which we think is not warranted.

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