Tag Archives: TAL Education

News Digest: July 23, 2013

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The following press releases and media reports about Chinese companies were carried on July 23. To view a full article or story, click on the link next to the headline.
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  • KFC (NYSE: YUM) Ice Cubes Found Dirtier Than Toilet Water (English article)
  • Glaxo (London: GSK) Says Executives Appear To Have Broken Chinese Law (English article)
  • TAL Education (NYSE: XRS) Announces Unaudited Fiscal Q1 Results (PRNewswire)
  • Loan Search Platform Rong360 Wins $30 Mln Funding – Source (English article)
  • MIIT Releases Real-Name Network Access Regulations (English article)
  • Latest calendar for Q2 earnings reports (Earnings calendar)

New Oriental Comments Fuel Privatization Talk

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New Oriental privatization rumors grow

More than a month after I predicted that education services provider New Oriental (NYSE: EDU) could become the next US-listed Chinese company to privatize, media are buzzing with comments and other rumors that indicate such a bid could indeed be in progress. I made my remarks in late April after New Oriental reported relatively solid quarterly results that failed to impress US investors who have become wary of many Chinese companies after a series of accounting scandals. (previous post) That lack of investor appreciation has led a growing number of US-listed Chinese companies to launch privatization bids, and I predicted that New Oriental could become one of the next to joint that list. Read Full Post…

New Oriental: Privatization Bid On Tap?

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New Oriental gets no respect

I have to extend my sympathies to education services provider New Oriental (NYSE: EDU), which seems unable to earn any respect from US investors these days. The company has just reported earnings that look quite respectable to me, after being exonerated last year by the US securities regulator over potentially problematic accounting. And yet despite all that good news, investors have greeted this latest earnings report largely with indifference, leading me to speculate that New Oriental could soon join a growing list of US-traded Chinese firms to privatize. Read Full Post…

News Digest: October 24 报摘： 2012年10月24日

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The following press releases and media reports about Chinese companies were carried on October 24. To view a full article or story, click on the link next to the headline.
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  • Nexen (Toronto: NXY) Sale Said to Turn on China Backing Canada Deals (English article)
  • Suntech (NYSE: STP) Refuses Conditions for Government Assistance (Chinese article)
  • NetEase (Nasdaq: NTES) Portal Editor-in-Chief Joins Baidu (Nasdaq: BIDU) – Source (English article)
  • TAL Education (NYSE: XRS) Announces Fiscal Q2 Results, Declares Dividend (PRNewswire)
  • Ironwood, AstraZeneca (London: AZN) Announce Linaclotide Collaboration for China (Businesswire)

New Oriental Gets Accounting Lesson 新东方受到会计调查

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Tuesday was not a kind day to US-listed Chinese companies, as education specialist New Oriental (NYSE: EDU) led a downward charge that saw its shares go into free-fall, losing a third of their value, after it released its latest quarterly results. But investors weren’t focused on the results themselves, which were actually quite respectable, but rather got spooked by a note near the bottom of the announcement saying the company was being investigated by the US securities regulator for its accounting practices. (results announcement)

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News Digest: January 20, 2012

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The following press releases and media reports about Chinese companies were carried on January 20. To view a full article or story, click on the link next to the headline.

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◙ Sina’s (Nasdaq: SINA) Weibo Microblog to Launch Paid Service (English article)

◙ China Auto First Chinese IPO Filer Since US Rule Change (English article)

◙ China Unicom (HKEx: 762) 3G Users Pass 40 Million Mark (Chinese article)

◙ TAL Education (NYSE: XRS) Announces Unaudited Results Fiscal Q3 Ended Nov 30 (PRNewswire)

◙ BesTV, CNTV Discuss Possible IPTV Joint Venture (English article)

Education Getting Lesson in Competition

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The latest signals from the education sector, including a mid-sized acquisition by a major foreign player, indicate competition is heating up in the space, posing future challenges for everyone. The latest deal is seeing British publishing giant Pearson (London: PSON) offering to buy a relatively small Chinese firm, Global Education and Technology Group (Nasdaq: GEDU) for just over $11 per share, or $155 million. (English article) That represented a 100 percent premium to Global Education’s last close before the deal was announced, and is nearly 4 times where it was trading in the days before that. The news didn’t help homegrown education leaders New Oriental Education (NYSE: EDU), TAL Education (NYSE: XRS) and Xueda (NYSE: XUE), whose shares all fell amid a broader Wall Street sell-off. Pearson’s latest China education buy follows its earlier purchase of Wall Street English, another major provider of English-language teaching in China, and also follows a move into the market earlier this year by US education giant DeVry (NYSE: DV) (previous post), showing foreign giants, whose ranks also include Disney (NYSE: DIS), realize the big potential in the market and are looking to capitalize on it. Of course all this could mean bad news for homegrown players like New Oriental and Xueda, the former of which reported slowing growth last week while the later posted a widening quarter loss. (previous post) Perhaps sensing vulnerability among the homegrown players, a small investment house, OLP Global, launched a short-selling attack on New Oriental late last week, drawing on recent concerns about the quality of accounting at many US-listed Chinese firms to imply New Oriental may have been playing tricks with its own accounting. The attack prompted New Oriental to issue a statement denying the allegations (company announcement) The statement may have stopped a broad slide for New Oriental shares, but its stock is still down 24 percent since the beginning of November, including a 10 percent drop after it announced its third quarter results. The way things are going, don’t look for the situation to improve for domestic education firms anytime soon.

Bottom line: The latest M&A by a foreign company in China’s education market show competition is growing intense, leaving domestic players vulnerable.

Related postings 相关文章:

◙ New Oriental Results: Slowing Education Growth Story 新东方发表最新财报 中国教育服务增长减速？

◙ Parade of China Money-Losers Report to Wall Street 多家中国企业亏损凸显市场竞争激烈

◙ Education: DeVry Deal Showcases Corporate Opportunity

News Digest: October 26, 2011

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The following press releases and media reports about Chinese companies were carried on October 26. To view a full article or story, click on the link next to the headline.

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◙ Wal-Mart (NYSE: WMT) Reviews China Mgmt as Pork-Label Scandal Leads to Apology (English article)

◙ Nokia (Helsinki: NOK1V) Names Gustavo Eichelmann As New China Head (Chinese article)

◙ TAL Education (NYSE: XRS) Announces Unaudited Results for the Second Fiscal Quarter (PRNewswire)

◙ CNOOC (HKEx: 883; NYSE: CEO) says Bohai Bay oil spill sources all sealed: Xinhua (English article)

◙ Groupon’s Gaopeng Loses $46.45 Mln in First 9 Months of 2011 (Chinese article)

New Oriental Results: Slowing Education Growth Story 新东方发表最新财报 中国教育服务增长减速？

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Leading Chinese education firm New Oriental’s (NYSE: EDU) latest results show a company heading into a new stage of slower growth, proving that no one is immune to a slowdown once it becomes big enough and that demand for even a hot product like education is limited. In reporting results for its latest fiscal quarter, New Oriental said it expects revenue for the upcoming quarter to grow by 30-35 percent, a bit of a slowdown from the 40 percent growth in the most recent quarter but a sharp drop from the last 2 years when profit and revenue were growing in the high double-digits and even triple digit percentages. (company announcement) This kind of slowdown is inevitable for nearly any company, although it’s been surprising to see how quickly it’s come for New Oriental, which just two quarters ago was reporting revenue that rose by 60 percent and net profit that doubled. (previous post) The company’s shares shed more than 10 percent after the results came out, even as Wall Street saw a broader rally, as investors realized that all good things must end, and no one is immune to growth slowdowns. Growing competition from foreign players like Disney (NYSE: DIS) and DeVry (NYSE: DV) are also making life more difficult, and Beijing’s recent efforts to cool China’s economy probably aren’t helping either. New Oriental didn’t provide any color for its guidance, but in reality this kind of slowdown is natural for any company in the industry and I suspect the Wall Street sell-off represents some profit taking from investors who have still seen strong returns on New Oriental’s shares over the last 2 years. Shares of one of New Oriental’s biggest rivals, TAL Education (NYSE: XRS) were also down more than 10 percent on Tuesday, signaling China’s education boom has probably reached its peak, and growth will enter a new slower phase.

Bottom line: New Oriental’s latest results and outlook show that boom times for education services firms have come to an end, to be replaced by slower growth in the next 2 years.

Related postings 相关文章:

◙ Education: DeVry Deal Showcases Corporate Opportunity

◙ New Oriental Shows Why Education Pays 新东方告诉你为何教育会有回报

Education: DeVry Deal Showcases Corporate Opportunity

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While big question marks loom over many of China’s growth industries like high-tech and alternate energy, one area that seems resistant to the turbulence is education, as evidenced by a new deal announced by a unit of US education services giant DeVry (NYSE: DV). The announcement is short and simple, saying the China licensee of Becker Professional, DeVry’s finance education arm, will provide education services to GE’s (NYSE: GE) China employees to bring them up to global accounting standards. (company announcement) I’ve said before that I’m quite bullish on the education sector, as Chinese and many Asians in general have shown a willingness to invest lavishly on themselves and their children to improve their chances in these ultra-competitive societies — even and perhaps especially in times of economic trouble. Chinese companies have been the first to realize and take advantage of this seemingly recession-proof demand, with industry leaders New Oriental Education (NYSE: EDU) and TAL Education (NYSE: XRS) both reporting their revenue rose around 60 percent in the second quarter, though each gave more conservative guidance for the third quarter. (previous post) Still, those kinds of numbers, when other sectors are reporting much slower growth, should certainly be catching the attention of major Western players like DeVry and Disney (NYSE: DIS), which last year officially launched a chain of Disney-branded English learning schools for pre-school and elementary school aged children. The corporate tie-up like the one just announced by DeVry is a sign of things to come, as Western companies and Chinese alike look to bring their employees up to international standards with this kind of educational corporate tie-up. As that happens, look for both the domestic and international players to keep notching strong growth in this market thirsty for education services.

Bottom line: DeVry’s new education services deal with GE China reflects continuing strong demand for such services from both Chinese consumers and businesses and bodes well for the sector.

Related postings 相关文章:

◙ New Oriental Shows Why Education Pays 新东方告诉你为何教育会有回报

◙ China NY Stocks on Cusp of Comeback? 中国赴美上市公司股票即将触底反弹？

News Digest: July 27, 2011

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The following press releases and media reports about Chinese companies were carried on July 27. To view a full article or story, click on the link next to the headline.

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◙ Xunlei, Shanda Cloudary Aborted IPOs Create Domino Effect for Tudou, Others (Chinese article)

◙ Sun Art Retail Gains in Gray Market Ahead China Hypermarket Chain’s Debut (English article)

◙ TAL Education (NYSE: XRS) Announces Results for the Quarter Ended May 31 (PRNewswire)

◙ UPS (NYSE: UPS) Launches Express Flights to Fast-Growing Chengdu (Businesswire)

◙ Nissan’s China Venture to Invest $7.8 Billion to Boost Output, Gain Sales (English article)