[Click eStock] "Cheongdam Learning, Performance Growth Expected from Online Class Success... Target Price Up"

[Asia Economy Reporter Song Hwajeong] KTB Investment & Securities raised the target price for Cheongdam Learning from 25,000 KRW to 43,000 KRW on the 26th, expecting earnings growth driven by the success of its online classes. The investment opinion was maintained as 'Buy.'

Cheongdam Learning's first-quarter earnings this year showed significant growth, with sales increasing by 20% year-on-year to 52.6 billion KRW and operating profit soaring 164% to 8.7 billion KRW. Jaeyoon Kim, a researcher at KTB Investment & Securities, explained, "This is due to the sharp increase in the number of enrolled students following the success of online classes that started last year," adding, "The number of domestic students reached 53,000 as of the end of the first quarter, maintaining an upward trend."

Online classes are expected to drive future earnings growth. Researcher Kim said, "Following the success of live classes, which are online lessons due to COVID-19, a formal class launch is planned within the year," and added, "Despite a decline in offline classes, Cheongdam Learning's earnings were supported, so a quantum leap in earnings is expected after the launch of online classes."

Overseas royalty income is also expected to increase. First, with the opening of 'Aigarten' next week, the English education business in China will officially begin, raising expectations for royalty generation within China. In Vietnam, the total number of students has expanded to 52,000, and through contract renewals last year, royalties can now be collected for Cheongdam Learning and Aigarten programs starting this year. Researcher Kim predicted, "Royalties, which were previously collected only for the 'April' program, will expand to Cheongdam Learning and Aigarten, increasing annual royalty income by more than 30%."

KTB Investment & Securities forecasted Cheongdam Learning's earnings for this year to reach sales of 212.7 billion KRW, an 18% increase year-on-year, and operating profit of 36 billion KRW, a 113% increase.

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