BRIEF: China New Higher Education’s profit rises, but margins under pressure
Vocational educator China New Higher Education Group Co. Ltd. (2001.HK) on Thursday announced its revenue rose 12.2% to 2.84 billion yuan ($392 million) in its latest fiscal year through August, while its net profit rose by a slower 7.5% to about 760 million yuan.
During the 12-month period, the company’s tuition revenue rose 13% to 2.15 billion yuan, and its revenue from accommodation fees rose 19% to 264 million yuan. But the company’s costs also increased by nearly 17%, mainly due to campus and equipment upgrades and teacher optimization. As a result, its gross profit margin fell by 1.7 percentage points to 36.3% from 38% in the previous fiscal year.
China Newer Higher Education announced it will pay a final dividend of $0.233 per share, but the amount will be payable wholly as scrip shares. The company’s stock opened lower and was down nearly 40% early in the Friday trading session.
By Lau Chi Hang
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