The analyst rating for CHINA EAST EDU (00667.HK) is maintained as a "Buy" by Citi Research due to the company's strong FY25 results, which confirmed the recovery thesis. The adjusted net profit grew by 50.9% year-over-year, reaching RMB792 million, which was at the upper limit of the earnings forecast range. Additionally, revenue exceeded expectations, growing by 12.1% to RMB4.616 billion, and the gross profit margin improved, indicating enhanced core profitability. Despite a slight shortfall in net profit compared to the broker's forecast, this was attributed to non-operational factors rather than margin issues. The target price set by Citi is HKD7.8.
