FAST NEWS: New Higher Education’s profit rises on business expansion
The Latest: Private vocational educator China New Higher Education Group Co. Ltd. (2001.HK) said its profit rose 10.6% to 432 million yuan ($59.6 million) during the first half of its fiscal year through February, according to its latest interim results released on Wednesday.
Looking Up: The company’s revenue increased 13.8% to 1.31 billion yuan during the six-month period, aided by steady growth in tuition and boarding fee income.
Take Note: Its cost of sales increased by 12.9% to 790 million yuan, the result of ongoing campus and laboratory upgrades, as well as optimization of its teaching cost structure and strengthening of the quality of its teaching team.
Digging Deeper: Founded in 1999 and headquartered in Beijing, New Higher Education is a leading provider of higher education services in Southwest China. The company launched eight new majors in 2021, including ones closely following current science and technology trends such as smart manufacturing engineering, big-data technology, internet and new media. Meanwhile, it has also entered fields in need of specialists to deliver basic public services, such as community rehabilitation, childcare services and early education. Those additions have helped the company to post revenue and profit gains since 2021, even in the face of pandemic headwinds during that time.
Market Reaction: New Higher Education shares dipped on Thursday, closing down 1.3% to HK$2.26 at the midday break. It now trades in the middle of its 52-week range.
Translation by A. Au
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