Analyst

Steve

Equity Bottom-Up

China Beststudy Education Group / Equity Bottom-Up

<ul>
<li>China after-school tutoring remains one of the most attractive and visible sectors in the next 2-3 years time frame. </li>
<li>Even though <a href="https://www.smartkarma.com/entities/new-oriental-education-techn-cc88998e-fe0d-4a03-b544-f3e9836b06a2" target="_blank" data-smartkarma-citation="entities:531:1" rel="noopener">New Oriental Education &amp; Techn (EDU US)</a> had some hiccups in FY3Q24 results, they were mainly due to factors not related to the core after-school tutoring business.</li>
<li>My sector top pick is <a href="https://www.smartkarma.com/entities/china-beststudy-education-group" target="_blank" data-smartkarma-citation="entities:40632:1" rel="noopener">China Beststudy Education Group (3978 HK)</a>, as valuation is lower and growth is higher, though it has a much smaller market cap..</li>
</ul>


China after-school tutoring remains one of the most attractive and visible sectors in the next 2-3 years time frame. 
Even though New Oriental Education &amp; Techn (EDU US) had some hiccups in FY3Q24 results, they were mainly due to factors not related to the core after-school tutoring business.
My sector top pick is China Beststudy Education Group (3978 HK), as valuation is lower and growth is higher, though it has a much smaller market cap..


China After-School Tutoring:  Still In The Early Innings; Prefer China Beststudy Over EDU

<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-beststudy-education-group" target="_blank" data-smartkarma-citation="entities:40632:1" rel="noopener">China Beststudy Education Group (3978 HK)</a> is a Chinese K12 tutoring company with the majority of the learning centers in the Greater Bay Area. </li>
<li>The company is trading at 5x forward PE (2024), and I expect earnings to grow &gt;100% in 2024 off of a low base, and &gt;30% in 2025.  </li>
<li>I believe a forward PE of 10x is reasonable and conservative, which is at a discount to the market leader EDU's current 20x.</li>
</ul>



China Beststudy Education Group (3978 HK) is a Chinese K12 tutoring company with the majority of the learning centers in the Greater Bay Area. 
The company is trading at 5x forward PE (2024), and I expect earnings to grow &gt;100% in 2024 off of a low base, and &gt;30% in 2025.  
I believe a forward PE of 10x is reasonable and conservative, which is at a discount to the market leader EDU's current 20x.


China Beststudy Education (3978 HK):  A Darkhorse Stock In The China Tutoring Sector

New Oriental Education & Techn / Equity Bottom-Up

<ul>
<li>Today, after Hong Kong market close, the Ministry of Education issued a new draft regulation on K12 tutoring. </li>
<li>I have written before on <a href="https://www.smartkarma.com/entities/new-oriental-education-techn-cc88998e-fe0d-4a03-b544-f3e9836b06a2" target="_blank" data-smartkarma-citation="entities:531:1" rel="noopener">New Oriental Education &amp; Techn (EDU US)</a> and China Beststudy that there is now a equilibrium reached between all parties on tutoring in China. </li>
<li>The new draft regulation basically puts it into concrete policy, which should alleviate investor concern on the sector. </li>
</ul>


Today, after Hong Kong market close, the Ministry of Education issued a new draft regulation on K12 tutoring. 
I have written before on New Oriental Education &amp; Techn (EDU US) and China Beststudy that there is now a equilibrium reached between all parties on tutoring in China. 
The new draft regulation basically puts it into concrete policy, which should alleviate investor concern on the sector. 


EDU/TAL:  China Tutoring - Here Comes The Policy Tailwind

China

China Beststudy Education Group provides education services. The Company offers after-school education services, school subject-related courses, and other related services. China Beststudy Education Group provides services in China.

China Beststudy Education Group (3978 HK)

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China Beststudy Education Group (3978 HK)

China After-School Tutoring: Still In The Early Innings; Prefer China Beststudy Over EDU

China Beststudy Education (3978 HK) is up 15% today on good volume on the back of raised guidance for FY24 by management. The stock has more than...

Steve

China Beststudy Education (3978 HK): A Darkhorse Stock In The China Tutoring Sector

High conviction pick in a very attractive sector with policy tailwind now. Volume starting to pick up indicating more investor interest. Still...

Steve

EDU/TAL: China Tutoring - Here Comes The Policy Tailwind

The Ministry of Education issues new draft regulation on K12 tutoring in China, bringing clarity and alleviating investor concerns.

Steve

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

China After-School Tutoring: Still In The Early Innings; Prefer China Beststudy Over EDU

China Beststudy Education (3978 HK) is up 15% today on good volume on the back of raised guidance for FY24 by management. The stock has more than...

Steve

China Beststudy Education (3978 HK): A Darkhorse Stock In The China Tutoring Sector

High conviction pick in a very attractive sector with policy tailwind now. Volume starting to pick up indicating more investor interest. Still...

Steve

EDU/TAL: China Tutoring - Here Comes The Policy Tailwind

​The Ministry of Education issues new draft regulation on K12 tutoring in China, bringing clarity and alleviating investor concerns.

Steve

The Ministry of Education issues new draft regulation on K12 tutoring in China, bringing clarity and alleviating investor concerns.