New Oriental Education 9901; US: EDU

[winston]

vested

<Research Report>UBS Sees Academic K12 AST to Make up c80% of EDU's FY21 Rev., Almost TAL's Entire FY21 Rev.

UBS expected Chinese tutoring stocks to fully exit their K12 academic AST business and shift to non-academic AST subjects like art, science and sports, to remain compliant and publicly-traded, should China fully roll out the reported AST regulation.

The broker estimated the K12 AST business to make up 80% of New Oriental Education and Technology Group (EDU.US)'s FY21 revenue and nearly TAL Education Group (TAL.US)'s entire FY21 revenue.

Source: AAStocks Financial News

[winston]

vested

Pivot or else: How China’s largest edtech company can survive the government’s latest crackdown

BY YVONNE LAU

The group now offers an extensive menu of learning services, including K-12 tutoring in core subjects like math, geography and Chinese; test preparation for domestic and overseas exams; foreign language courses; and study abroad programs and consulting.

It can transform its business model to focus on the education segments untouched by the new regulations, such as exam preparation and non-academic learning in arts, crafts, sports, and computers.

While 75% of the company’s revenue comes from after-school tutoring in K-12 subjects—the main segment targeted in Beijing’s Saturday announcement—25% of its revenue is from exam prep, testing services, and language courses.

For firms to remain listed, they’ll need to spin-off the regulated services into a non-profit entity while reallocating their resources to focus on non-academic tutoring.

Source: Fortune

https://fortune.com/2021/07/27/new-orie ... lbullsheet

[winston]

vested

China’s private tutoring guru closes 1,500 of New Oriental schools amid Beijing crackdown

Yu Minhong, founder of New Oriental, announced that the company will start selling farm produce after closing its after-school tutoring business

State Council issued sweeping new regulations in July that banned private tutoring centres from making profits by teaching school subjects

New Oriental will continue to provide adult training services, which include language classes, test-prep courses and overseas study consultation.

Source: SCMP

https://www.scmp.com/tech/policy/articl ... hools-amid

[winston]

vested

NEW ORIENTAL-S: Not To Shut off, Int'l & University Biz Ongoing

NEW ORIENTAL-S (09901.HK) will not be shut down, as Chairman Yu Minhong responded to Chinese media, saying only the training business at the compulsory education stage will be switched off.

The international business and university operation, on which the company was founded, will still be ongoing, Yu added.

Source: AAStocks Financial News

[winston]

vested

New Oriental Education

Shares of Beijing-based New Oriental Education & Technology Group Inc. (NYSE: EDU) have plunged by around 87% over the past 12 months.

In a business update released earlier this month, New Oriental said it will stop offering these classes by the end of this year and that the closure could cost the company 50% to 60% of its annual revenue.

New Oriental said it will shift to “test preparation courses, language training courses for adults and educational materials.”

Of 18 analysts covering the stock, half have a Hold rating, and six rate the stock at Buy or Strong Buy. At a share price of around $2.30, the upside potential based on a median price target of $3.20 is 39%. At the high price target of $18, the upside potential is more than 680%.

Analysts expect the company to report first-quarter fiscal 2022 revenue of $1.29 billion, up 6.8% sequentially and 30% year over year.

Adjusted EPS are tabbed at $0.03, up from flat in the prior quarter but down from $0.12 in the year-ago period.

For the full fiscal year ending next May, analysts currently forecast a loss per share of $0.09, compared with a profit of $0.25 in the prior year, on sales of $2.81 billion, down 34%.

Based on estimated EPS of $0.25 in fiscal 2023, New Oriental’s earnings multiple for the year is 9.0. For fiscal 2024, the multiple to estimated EPS of $0.30 is 7.5.

Source: 24/7 Wall Street

[winston]

vested

This High Risk / High Reward Stock Has 50%-Plus Upside Potential

Source: Trades Of The Day

https://tradesoftheday.com/2021/11/23/t ... tential-2/

[behappyalways]

New Oriental Education lays off 60,000 employees following government crackdown
https://www.theedgesingapore.com/news/c ... -crackdown

[winston]

not vested

PM Upgrades NEW ORIENTAL-S (09901.HK) to Overweight, Lifts TP to HK$19

JPMorgan bumped up NEW ORIENTAL-S (09901.HK) further to Overweight, after upgrading it to Neutral earlier.

The broker expected the educator's relative and absolute value to emerge as investment sentiment on Chinese equities market and ADRs find the bottom.

NEW ORIENTAL-S' net cash holdings reached US$4.3 billion as of end-February, i.e. US$25.3/share.

In comparison, New Oriental Education & Technology Group, Inc. (EDU.US) is trading at a negative EV.

The broker recommended eyeing on NEW ORIENTAL-S in the coming 6 months due to undemanding valuation.

The target price on NEW ORIENTAL-S (09901.HK) was lifted from HK$11 to HK$19, and that on New Oriental (EDU.US) was raised to US$24.

Source: AAStocks Financial News

[winston]

not vested

3Q Results

Revenue: -48%
Losses: US$141m

The total number of schools and learning centers was 847 as of February 28, 2022, a decrease of 778 and 822 compared to 1,625 as of February 28, 2021 and 1,669 as of May 31, 2021, respectively. The total number of schools was 111 as of February 28, 2022.

http://iis.aastocks.com/20220426/10228695-0.PDF

[winston]

not vested

Hedge Fund Buying Sparks 380% Rally for Hard-Hit Education Stock

by Bei Hu

New Oriental’s test and English language preparation, book publishing, and corporate training businesses remain unaffected.

started a live-streaming e-commerce business, and shifted the focus of its education segment to non-school curriculum subjects and 10th to 12th grades.

Source: Bloomberg

https://finance.yahoo.com/news/hedge-fu ... 07531.html