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New Oriental Education & Technology Group Inc EDU

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Market Overly Reacts to After-School Tutoring Policy Overhang

Jenny Tsai Senior Equity Analyst

Analyst Note

| Jenny Tsai |

On May 23, the Beijing Haidian Education Committee hosted a meeting to discuss after-school education after the CPC Central Committee, or CPCCC, meeting on Friday, which also approved easing students’ after-school burdens via a “double cutting” proposal. Post the meeting, the U.S. listed Chinese education stocks came under pressure amid market talk over increasing Beijing scrutiny, with GSX Techedu (GOTU US) down 12%, TAL Education (TAL US) down 10%, and New Oriental Education (EDU US) down 6%. 

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Company Profile

Business Description

EDU, founded in 1993, is the largest well-established one-stop shopping private educational services provider in China. EDU has had over 52.8 million student enrollments, including about 8.4 million enrollments in fiscal 2019. As of third-quarter fiscal 2020, EDU had a network of 1,416 learning centers, including 99 schools, 12 bookstores and access to a national network of online and offline bookstores through 160 third-party distributors and over 38,400 highly qualified teachers in 86 cities. EDU offers a diversified portfolio of educational programs, services and products to students in different age groups, including K-12 after-school tutoring for major academic subjects, overseas and domestic test preparations, nonacademic languages and services in vocational training, and so on.

Contact
No. 6 Hai Dian Zhong Street, Haidian District
Beijing, 100080, Cayman Islands
T +86 1060908000
Sector Consumer Defensive
Industry Education & Training Services
Most Recent Earnings Feb 28, 2021
Fiscal Year End May 31, 2021
Stock Type
Employees 81,127

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