EDU: Stronger Recovery In U-Can And Higher ASP As A Result Of High Volume Of Course Sessions Are Likely To Lead To Positive FY1Q21 Performance

EDU will report FY1Q21 results on October 13th before the market opens with an 8am EST conference call. We are positive on EDU’s FY1Q21 performance. COVID-19 has changed how education is conducted; co-existence of offline, online and semi-online are likely to be the future. For EDU’s business, overseas and 1-1 are impacted, but its K-12, specifically U-Can, has bounced back nicely. While the number of K-12 courses and attendees grew 0.9% Y/Y and declined 7.1% Y/Y, respectively, the U-Can segment grew 12.9% Y/Y and 17.0% Y/Y, respectively, in FY1Q21.