[ET Net News Agency, 29 January 2021] Goldman Sachs trimmed its target price for
Koolearn Technology (01797) to HK$22 from HK$29 and maintained its "sell" rating.
The research house said Koolearn's K12 business (including large-class and DFUB)
remained at an infant stage with below-expected revenue growth and margin profile. The
online large-class AST (after-school tuition) segment reached Rmb186mn revenue in 1H
FY2021, but recorded -50% GPM on low ASP and an enlarged teacher team, while DFUB's unit
economics continued to fall behind management guidance, with only 5% GPM and lower ASP.
Goldman noted that Koolearn had entered 271 cities for DFUB and 100 cities for the
large-class business for offline student acquisition as of 1H FY2021. Management now plans
to slow down DFUB geographical expansion from FY2022 after it crosses the 300-city mark.
Goldman revised down its revenue forecasts by 15-21% in FY2021-25. (KL)
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01797 EAST BUY
Nominal 
17.240 +1.280 (+8.020%) Research Report
29/01/2021 15:41
{I-bank focus}Goldman trims Koolearn (01797) to HK$22
| Remark: | Real time quote last updated: 26/04/2024 18:00 |
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