Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

(9901)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Chinese tutoring firms could spin-off units, boost non-academic tutoring - analysts

07/26/2021 | 01:05pm EDT
FILE PHOTO: FILE PHOTO: Children leave a school in the Shekou area of Shenzhen

(Reuters) - Battered by a regulatory crackdown, China's multi-billion dollar private tutoring sector could seek to separate its business segments and bulk up non-academic tutoring as it tries to soften the blow on its operations, analysts said on Monday.

Shares in Hong Kong and U.S.-listed education firms such as New Oriental Education & Technology Group, TAL Education Group and Gaotu Techedu fell sharply for the second straight session on Monday after China barred for-profit tutoring in core school subjects.

While the firms said they expected the new rules to have a material impact on their after-school tutoring services, some analysts expect some of the largest education providers to take steps to mitigate the impact on their businesses.

"Tutoring companies likely have to dispose of K-9 academic tutoring businesses," China Renaissance Securities analyst Don Lau said in a note.

Mark Haefele, chief investment officer at UBS Global Wealth Management, noted that implementation of previous regulations has "often not taken the strictest form" and said listed after-school tutoring firms may look to spin off their school curriculum-based businesses and focus on other areas to avoid delisting.

Under the new rules, all institutions offering tutoring on the school curriculum will be registered as non-profit organisations, according to an official document.

China's education industry sub-index plunged as much as 15% from Thursday's close.

Morningstar Equity Research said in a report that it believed "both New Oriental and TAL would need to adjust their K-12 academic businesses and likely spin off the non-profit mandatory education businesses in the longer term - while keeping high schools and other business such as overseas test preparation, adult English, and general English."

It expects both providers to invest in non-academic tutoring such as art, computer coding, sport, music, and other extra curricular programs to keep their companies to remain listed.

(Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Anshuman Daga and Maju Samuel)

By Abhijith Ganapavaram


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
CHINA RENAISSANCE HOLDINGS LIMITED 2.17% 20.25 End-of-day quote.27.68%
MORNINGSTAR, INC. -0.16% 275.87 Delayed Quote.19.13%
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. 0.83% 14.56 End-of-day quote.-89.54%
TAL EDUCATION GROUP 3.13% 4.62 Delayed Quote.-93.54%
All news about NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
09/13NEW ORIENTAL EDUCATION & TECHNOLOGY : Thinking about buying stock in Farmmi, Glo..
PR
09/13NEW ORIENTAL EDUCATION & TECHNOLOGY : DATE OF BOARD MEETING (Form 6-K)
PU
09/09NEW ORIENTAL EDUCATION & TECHNOLOGY : Thinking about buying stock in Gevo, Vinco..
PR
09/08NEW ORIENTAL EDUCATION & TECHNOLOGY : Thinking about buying stock in Vinco Ventu..
PR
09/08China Blocks Tutoring Companies' Enrollments Pending Regulatory Clearance
MT
09/06ANALYSIS : Sovereign wealth funds sweet on China, despite regulatory headwinds
RE
09/02Factbox-From tech to entertainment, China's season of regulatory crackdown
RE
08/31NEW ORIENTAL EDUCATION & TECHNOLOGY : Thinking about buying stock in Globalstar,..
PR
08/30FACTBOX : From tech to education, China's season of regulatory crackdown
RE
08/30NEW ORIENTAL EDUCATION & TECHNOLOGY : Morgan Stanley Upgrades New Oriental Educa..
MT
More news
Analyst Recommendations on NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
More recommendations
Financials (USD)
Sales 2021 4 186 M - -
Net income 2021 419 M - -
Net cash 2021 1 685 M - -
P/E ratio 2021 7,53x
Yield 2021 0,38%
Capitalization 3 257 M 3 257 M -
EV / Sales 2021 0,38x
EV / Sales 2022 0,38x
Nbr of Employees 69 438
Free-Float 99,8%
Chart NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
Duration : Period :
New Oriental Education & Technology Group Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 23
Last Close Price 1,90 $
Average target price 7,13 $
Spread / Average Target 275%
EPS Revisions
Managers and Directors
Cheng Gang Zhou Chief Executive Officer & Director
Zhi Hui Yang Chief Financial Officer & Executive President
Min Hong Yu Executive Chairman
Yan Hong Li Independent Director
Ting Bun Lee Independent Director