信达国际控股：给予中国春来(01969.HK)“增持”评级 目标价2.00港元

信达国际控股5月15日发布公告。While gross profit largely remained flat in 1H18/19, core profit grew by 17% to RMB83mn thanks to i) RMB6.1mn consultancy income from Hubei College (nil in 1H17/18), ii) RMB13mn reduction in finance costs, and iii) additional income from third-party catering service provider. Given the business nature of higher education operators, core profit in 2H18/19E would be largely similar to that in 1H18/19. Beside, we expect core profit to grow by 47% to RMB250mn in FY19/20E driven by i) increase in total students, ii) tuition fee hike and iii) rebound in GPM. Contribution from potential M&A is not included in our forecasts. Chunlai is trading at 6.3X core FY19/20E PE versus a median of 11.0X for its higher education peers, we reiterate our view that re-rating is deserved.