There were Chinese companies U.S. listed firms Gaotu Techedu, New Oriental and TAL Education which had Combined market cap of 120 Billion. TAL fr example was doing revenue of USD 5 Billion a year.
You can look at so many startups as an example you would not get any idea from just comparing financials. The competitive examinations business is all about teachers and outcomes (How many students got admitted). Reputation is the key here so you cannot build by purely selling ads. They have to buy these small companies and increase scale yet get good outcomes. That is a tough task.
Unfortunately, management was tied up with so many businesses and still, they should sell the corporate marketing business and focus only on Education but the drive is completely missing as the founders are now old. Immense potential to grow but let’s see. for me it was a style investment i did not need to think about business as such and it is multi-bagger. But now i need to evaluate if they can get growth back.
Disc: Holding stock since 2018 averaged down.
Subscribe To Our Free Newsletter |