[Click eStock] "Cheongdam Learning, Online Class Transition Does Not Cause Significant Damage"

KTB Investment & Securities Issues 'Buy' Rating and 25,000 KRW Target Price... Closing Price on 13th at 15,550 KRW

[Asia Economy Reporter Kum Boryeong] Cheongdam Learning has analyzed that despite switching to online classes due to the novel coronavirus infection (COVID-19), the damage has not been significant.

According to KTB Investment & Securities on the 14th, Cheongdam Learning's performance this year is estimated to be sales of 175.3 billion KRW and operating profit of 23.3 billion KRW. Compared to the previous year, these figures represent increases of 0.2% and 2.7%, respectively.

Although offline academy classes were postponed due to COVID-19, Cheongdam Learning quickly transitioned to online classes, successfully minimizing factors causing sales decline. Researcher Kim Jaeyoon of KTB Investment & Securities explained, "The dates of switching to online classes were March 2 for Cheongdam Language Academy and March 9 for April, so the actual COVID-19 closure damage was minimal, lasting only 7 to 14 days. Rather, due to fixed cost reductions such as instructor salaries and school bus operation expenses, profit margins increased despite the sales decrease."

At the end of last month, the number of domestic students enrolled in Cheongdam Learning increased by 3.3% compared to the end of last year. The company continues to expand its market share (MS) in the non-admission English market. Researcher Kim said, "The somewhat delayed Chinese English education business is expected to start in earnest from the third quarter, when the Chinese Angrie Edu opens. In particular, royalty sales from Kaidun Language Academy, which has 10,000 students, are expected to be reflected from the third quarter. Accordingly, we forecast royalty revenue of 600 million KRW from Kaidun and Angrie Edu franchisees this year, with full-scale royalty income expected to flow in from 2021."

KTB Investment & Securities gave Cheongdam Learning a 'Buy' investment rating and set a target price of 25,000 KRW. The closing price on the 13th was 15,550 KRW.

This content was produced with the assistance of AI translation services.