[ET Net News Agency, 23 November 2020] Daiwa Research cut its target price for Koolearn
Technology (01797) to HK$35 from HK$38 and reiterated its "outperform" rating.
The research house cited Koolearn management saying that the company started with
on-the-ground marketing campaigns in a bid to lower customer acquisition cost (CAC) for
its K12 business. Koolearn also raised pricing for its 2021 winter and spring term
courses.
Management said offline marketing could lower Koolearn's CAC to CNY100 against
CNY200-300 in FY2020. The company plans to expand offline selling activities to another
120-130 cities. Koolearn also saw improved conversion rates (10-12%) and retention rates
(70%) over the summer and autumn terms.
Daiwa raised the loss estimate for FY2021-23 due to the industry's rising CAC. (KL)
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01797 EAST BUY
Nominal 
15.960 -1.660 (-9.421%) Research Report
23/11/2020 18:01
{I-bank focus}Daiwa cuts Koolearn (01797) to HK$35
| Remark: | Real time quote last updated: 25/04/2024 18:00 |
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