EDU has started its rapid expansion since last quarter due to high demand from students and parents. As a result, our proprietary data shows that the company’s total course offerings, attendees as well as revenue are likely to experience high growth in FY2Q18.……

EDU will report FY1Q18 results on Tuesday, October 24th before the markets open with an 8am EST conference call. The company has been conservative in terms of its expansion, but EDU recently changed its approach to one of higher expansion, with high growth in new learning centers and course offerings. Based on our proprietary data, we believe expansion as well as its higher utilization rate is likely to drive high growth in its topline in FY1Q18, but more so in FY2Q18. Consensus for FY1Q18 at $6……

Increase in courseofferings and utilization rate driven by K-12 – According to our proprietary data for FY1Q18,the number of total courses offered was 135.0K in FY1Q18, up 24.8% Y/Y from108.1K in FY1Q17, and the number of fully registered courses increased 26.2%Y/Y to 39.4K in FY1Q18 from 31.3K in FY1Q17. ……

EDU reported strong FY4Q16 top line results of 20.1% Y/Y, which beat consensusexpectation, and EPS came in a penny below the Street after about 7% RMBdepreciation. For FY1Q17, the company guided revenue in USD terms belowconsensus due to the RMB depreciation. While FY1Q17 is a weak quarter, it is themost important quarter for the full year growth; therefore the company isaggressively doing promotions to recruit new students, which has already resultedin about 200K enrollments from the summer cla……

EDU will report FY4Q16 results on Wednesday, July 20th before the markets openwith an 8am EST conference call. Based on our proprietary data, we expect EDU toreport FY4Q16 results better than consensus driven by the increase in utilization ofboth courses and attendees. For the bottom line, we are expecting better marginsas a result of less new school openings and higher tuition per student per course.For FY1Q17, the company is offering low rate courses aggressively. While it maypressure FY1Q17’s……

EDU will report FY2Q16 results on Tuesday, January 19th before the markets open with an 8am EST conference call. Based on our proprietary data, we expect EDU to report FY2Q16 revenue better than consensus driven by higher average spending per attendee and better course utilization rate. For the bottom line, we believe better utilization as well as less expansion can be positive to its margin. As EDU is making meaningful improvements in its K-12 course offerings and enrollments combined with its ……

•Significant increase in course utilization rate – According to our proprietary data, for FY1Q16, the total number of courses offered only increased 21.6% to 84.0K from 69.1K in FY1Q15 (Figure 1), and the course utilization rate (defined as the number of fully registered and opened courses as a % of total courses offered) improved to 62.1% from 35.2% in FY1Q15 (Figure 1) with the number of fully registered and opened courses increased 27.9K or 114.8% Y/Y to 52.2K in FY1Q16 from 24.3K in FY1Q15 (……

March 1, 2015 – May 31, 2015 Data Highlights:Data in this report is extracted from public resources and processed with our proprietary methodology.•Less total course offerings due to course restructuring – In an effort to be more content centric instead of teacher centric, EDU moved its course offerings toward more standardization. As such, in FY4Q15 (03/2015-05/2015), the company consolidated small courses into bigger courses and shorter courses into longer courses. According to our proprietary……

EDU reported FY3Q15 results with both revenue and EPS beating consensus. It also provided FY4Q15 guidance above consensus. We attribute the solid results to the growth in the K-12 sector, especially for the strong performance of U-can middle school and the revamped Pop-kids classes. We believe K-12 may continue to serve as the growth driver in the future. We also believe the margin may expand gradually since the company has passed its significant investment phase in the last several quarters. In……

December 1, 2014 - February 28, 2015 Data Highlights:Data in this report is extracted from public resources and processed with our proprietary methodology.•Increase in fully registered courses and opened courses – For F3Q15 (12/2014-02/2015), according to our proprietary data as of 2/28/2015, the number of opened and fully registered courses may grow 42.8% Y/Y, which was primarily driven by the growth in K-12 course offerings at 49.6% Y/Y (Figure 1). ……

EDU will report F2Q15 results before the market opens on January 20, 2015 with an 8:00AM ET conference call. We believe the F2Q15 revenue could be in-line with consensus driven by the better performance in the K-12 sector, according to our proprietary data, even though its newly initiated credit program may have a 1 to 2 percentage point negative to the financial results. As such, the EPS may be weaker than current consensus at $0.07. In F3Q15, in addition to the continuing impact from this cred……

EDU reported pessimistic FY1Q15 results with both net revenue and EPS below consensus, which was primarily due to two negatives: 1) mis-interpretation of the policies regarding English for college examinations, and 2) the sharp drop in dormitory school courses during the summer vacation. Since the interpretation of the policy was corrected and the dorm school issue does not exist in FY2Q15, the company provided better guidance. As the company continues its efforts to restructure its course offer……

EDU will report FY1Q15 results before the market opens on October 24, 2014 with an 8:00AM EST conference call. While we don’t expect a better FY1Q15, we believe 2Q15 can be a better quarter. Among the many reasons that contribute to the potential performance change, a major one is the change in the interpretation of a recent policy toward English as one of the three must-take subjects for the college admission examination. In FY1Q15, when the policy just came out, most people believed the new po……