New Oriental Education 9901; US: EDU

[winston]

New Oriental cuts Q3 rev outlook, shares plummet

Feb 12 (Reuters) - China's New Oriental Education and Technology Group Inc (EDU.N), a private-education services provider, cut its third-quarter revenue outlook, citing the economic slump in China, sending its shares sliding 28 percent to their lowest levels in almost two years.

"The economic downturn in China has had a greater than anticipated effect on New Oriental's cash proceeds over the past several weeks," Chief Financial Officer Louis Hsieh said in a statement.

Susquehanna Financial Group downgraded the company's stock to "neutral" from "positive," saying there could be more underlying operational challenges than the cited macro-economic impact on student enrollment.

"Specifically, we believe school operating efficiency needs to improve going forward in order to sustain high growth without a significantly higher expense base," the brokerage said in a note to clients. The Beijing-based company now sees third-quarter total net revenue of $62 million to $65 million, compared with its prior estimate of $65.5 million to $67.5 million.

Analysts on average were expecting revenue of $67.6 million for the period, according to Reuters Estimates.

The key question is whether the company will be able to keep up its robust revenue growth during the next 12 to 24 months following the slowdown in infrastructure expansion, now that student enrollment is starting to see sign of weakness, the brokerage said.

In an interview with Reuters last November, CEO Michael Yu had said the number of scholarships for masters and Ph.D students in U.S. universities would fall, hurt by the financial crisis, and this would have a knock-on effect on New Oriental. New Oriental Education's growth is driven by English-language instruction and test preparation for English-language exams -- such as the U.S. Graduate Record Examination.

"We will become incrementally more positive, should we see clear indications that school capacity utilization increases or adults' willingness to spend on English language training recovers with the economy," Susquehanna said.

The company's shares fell $12.68 to $40.45 in morning trade on the New York Stock Exchnage. They touched a low of $38.04 earlier in the day.

[winston]

AMAZING PRICE STRENGTH FROM A BIG "CHINA PLAY"

Everywhere we look these days, we see pictures of how China is confounding the skeptics…

Like most assets, Chinese stocks enjoyed a huge rally off their panic lows of late 2008 and early 2009. China's benchmark stock index nearly doubled in just six months.

Then, the overbought market began drawing big-name skeptics – like legendary trader James Chanos – who think China is a huge bubble ready to burst.

Most Chinese stocks did correct early this year… but have since displayed impressive price strength to resume their bull trends. For example, consider New Oriental Education (EDU)…

New Oriental is the largest private education company in China. The bullish case says, as China grows wealthier, it's going to pay up for more educational services. This makes EDU one of the highest-profile "China plays" on the market. As you can see from today's chart, the bull case is intact and the stock is soaring to new highs.

You can be a China skeptic all you like. But make sure to "mind the market." Right now, it's voting the China story higher and higher.


www.dailywealth.com

[iam802]

Better don't crash.

Average Volume is only 200k +, and the price is trading around $109

It goes into my short list.

[kennynah]

since it is now into your short list..... and after you get into this trade...

let it


CRASH

[winston]

not vested

New Oriental Education & Technology Group Inc. provides private educational services primarily in China.

The company offers language training courses that consist of various types of English language training courses, as well as training courses for other foreign languages, including German, Japanese, French, Korean, and Spanish; and test preparation courses for language and entrance exams used by educational institutions in the United States, the People's Republic of China, and the Commonwealth countries.

It also operates primary and secondary schools in Yangzhou; develops and edits content for educational materials for language training and test preparation, such as books, software, CD-ROMs, magazines, and other periodicals that are distributed through its classrooms and bookstores, and third-party distributors.

In addition, the company provides consulting services to help students through the application and admission process for overseas educational institutions; college, graduate, and career counseling advice; and counseling for students with the immigration process for overseas studies, such as obtaining visas, and student and off-campus housing.

Further, it offers pre-school education; and software and other technology development and distribution services.


http://todaysbigstock.com/2013/02/20/ne ... -nyse-edu/

[winston]

not vested

New Oriental Slammed After Cheating Claims: Keep Calm And Buy On Dip?

By Shuli Ren

China’s New Oriental Education (EDU) tumbled 14.3% on Friday after a Reuters report claiming the for-profit learning center was helping students cheat on standardized tests and falsifying their college applications.

New Oriental’s consultants would write students’ university applications for them and even forge high school transcripts, Reuters claimed.

The American International Recruitment Council, which certifies agencies that recruit foreign students on behalf of U.S. colleges, said it would start an investigation into New Oreintal in response to Reuters’ article.

The 14% slump has wiped out New Oriental’s entire overseas consulting business, analysts say. Overseas consulting contributes to 8% of New Oriental’s total revenue, and only 5% of its total profit.

So is it time to buy on dip?

Credit Suisse’s Zoe Zhao is not shying away, maintaining the bank’s $60 price target. Zhao wrote:

AIRC is not a licence issuer but an independent NGO verifying overseas consulting service providers. Business goes on as usual without such qualification, as customers are barely aware of the certificate.

Fraud is too serious of a statement, in our view. EDU responded by saying no fraudulent activity is tolerated and it has sent two non-compliant staff to police earlier this year.

Some investors are concerned that overseas test prep (30% of revenue) could be affected as well. Our view is no. Overseas test prep is all objective and standardised with no tricks.

While EDU has been tapping cross-selling opportunities between overseas test prep and consulting, the two are separately run with different natures: test prep’s enrolment (300k+) is 10x larger than consulting (30k); yet ASP is much higher for consulting (~US$3-4k/student) than for test prep (US$1.2k/course).

EDU used to be burnt by MuddyWater’s short-selling report; so “fraud” is a big statement that triggered a fire sale. We have not yet found hard evidence regarding fraud.

Bribery is also an overstatement, in our view. None of the schools gave any exception to students attending the enrolment talk in China, according to Reuters.

New Oriental closed at $42. Competitor TAL Education (TAL) fell 2%.

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... uy-on-dip/

[winston]

not vested

Dec 2, 2016

Is New Oriental Education & Tech Grp (ADR) (EDU) Worthy of Your Portfolio?

by SYED JAWAD HAIDER

Source: Insider Monkey

Overall, the hedge fund interest towards New Oriental Education & Tech Grp (ADR) (NYSE:EDU) shares was flat at the end of last quarter. This is usually a negative indicator.

Ted Kang’s Kylin Management has the largest position in New Oriental Education & Tech Grp (ADR) (NYSE:EDU), worth close to $71.8 million, accounting for 14% of its total 13F portfolio.

The second largest stake is held by Thomas E. Claugus’ GMT Capital holding a $41 million position.

Remaining members of the smart money that hold long positions include Jim Simons’ Renaissance Technologies, Larry Chen and Terry Zhang’s Tairen Capital and Rob Citrone’s Discovery Capital Management.

We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.

http://www.insidermonkey.com/blog/is-ne ... yptr=yahoo

[winston]

New Oriental is the largest provider of private educational services in China offering a wide range of educational programs, services and products to a varied student population throughout China.

New Oriental’s program, service and product offerings consist of K-12 after-school tutoring, test preparation, language training for adults, pre-school education, primary and secondary school education, education materials and distribution, online education, and other services.

New Oriental is listed on NYSE (NYSE: EDU) and SEHK (9901.SEHK), respectively. New Oriental’s ADSs, each of which represents one common share. The Hong Kong-listed shares are fully fungible with the ADSs listed on NYSE.

[winston]

not vested

Apr 20, 2021

New Oriental Announces Results for the Third Fiscal Quarter Ended February 28, 2021

Total net revenues increased by 29.0% year-over-year to US$1,190.5 million for the third fiscal quarter of 2021.

Operating income decreased by 13.5% year-over-year to US$101.5 million for the third fiscal quarter of 2021.

Net income attributable to New Oriental increased by 9.9% year-over-year to US$151.3
mill

Operating Highlights for the Third Fiscal Quarter Ended February 28, 2021

Total student enrollments in academic subjects tutoring and test preparation courses increased by 43% year-over-year to approximately 2,296,800 for the third fiscal quarter of 2021.

The total number of schools and learning centers was 1,625 as of February 28, 2021, an increase of 209 compared to 1,416 as of February 29, 2020, and an increase of 107 compared to 1,518 as of November 30, 2020.

The total number of schools was 118 as of February 28, 2021.

Our key growth driver, K-12 all-subjects afterschool tutoring business, achieved year-over-year revenue growth of approximately 37%.

U-Can middle and high school all-subjects after-school tutoring business grew by approximately 35%,while our POP Kids program recorded a growth of approximately 40%.

Non-GAAP net margin for the quarter was 13.7%, down 240 basis points year-over-year.

http://iis.aastocks.com/20210420/9725702-0.PDF

[winston]

<Research Report>C Suisse Assumes EDU, TAL to Need to Split K12 Tutoring Biz, Trim Cost & Invest in New Biz

China issued the Opinions on Further Alleviating the Burden of Homework and After-School Tutoring for Students in Compulsory Education, where after-school tutoring (AST) institutions targeting high school students must comply with AST-related rules for the compulsory education phase, a surprise for the market in Credit Suisse's view.

The broker believed New Oriental Education and Technology Group (EDU.US) and TAL Education Group (TAL.US) will have to split their K12 tutoring units in order to cut cost and invest in new businesses.

Source: AAStocks Financial News