Research and Strategy for the Education Sector, Schoolhouse Solutions

Edward Slade

Research and Strategy for the Education Sector

Schoolhouse Solutions

Schoolhouse is a strategy and research provider for the Education sector. We publish differentiated reports and bespoke research on the sector, focused on private and public companies in Asia-Pacific. Our team has decades of experience working with Education companies ranging from K-12 to Tertiary and Edtech.

Strategy and Research Provider

Thematic (Sector/Industry)

<ul>
<li>Recovery in face-to-face education stocks will accelerate as Chinese international students return on-campus</li>
<li>International K-12 schools will perform strongly as hubs like Dubai and Singapore are booming.</li>
<li>Service providers like <a href="https://www.smartkarma.com/entities/idp-education-ltd" target="_blank" data-smartkarma-citation="entities:1098:1" rel="noopener">IDP Education (IEL AU), </a><a href="https://www.smartkarma.com/entities/flywire-corp" target="_blank" data-smartkarma-citation="entities:33339:1" rel="noopener">Flywire Corp (FLYW US)</a>; schools like Taaleem; and tertiary <a href="https://www.smartkarma.com/entities/china-education-group-holdin" target="_blank" data-smartkarma-citation="entities:18218:1" rel="noopener">China Education Group (839 HK)</a> , <a href="https://www.smartkarma.com/entities/laureate-education-inc" target="_blank" data-smartkarma-citation="entities:26388:1" rel="noopener">Laureate Education (LAUR US)</a>,  and <a href="https://www.smartkarma.com/entities/icollege-ltd" target="_blank" data-smartkarma-citation="entities:14576:1" rel="noopener">Icollege Ltd (ICT AU)</a> will outperform.</li>
</ul>


Recovery in face-to-face education stocks will accelerate as Chinese international students return on-campus
International K-12 schools will perform strongly as hubs like Dubai and Singapore are booming.
Service providers like IDP Education (IEL AU), Flywire Corp (FLYW US); schools like Taaleem; and tertiary China Education Group (839 HK) , Laureate Education (LAUR US),  and Icollege Ltd (ICT AU) will outperform.


International Education Stocks: Surging Student Volumes

Pan-Asia Equity Bottom-up, Wickhams Hill

Lloyd Moffatt

Pan-Asia Equity Bottom-up

Research-Intensive Fundamental Value Advisor

Wickhams Hill

Wickhams Hill Capital is a research-intensive fundamental value advisor, on long and occasionally short investment opportunities concentrated in small and mid-cap public companies.

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/20960" target="_blank" data-smartkarma-citation="entities:20960:1">Overseas Education Ltd (OEL SP)</a> reported their first quarter 2018 results recently. Though the company’s bottom line was marginally below expectations we expect the pressure on earnings in the coming quarters and full-year, to abate given the stronger than expected enrollments.The company has maintained its teaching staff as-is, with personnel expenses similar to the previous quarter but crucially 16.0% lower YoY. The successful rationalization of the major operating cost associated with the…

Overseas Education Ltd (OEL SP) reported their first quarter 2018 results recently. Though the company’s bottom line was marginally below expectations we expect the pressure on earnings in the coming quarters and full-year, to abate given the stronger than expected enrollments.The company has maintained its teaching staff as-is, with personnel expenses similar to the previous quarter but crucially 16.0% lower YoY. The successful rationalization of the major operating cost associated with the…

Strong Enrolments Positive for FY18/19, 8% Yield Sustainable.

<a href="https://www.smartkarma.com/entities/20960" target="_blank" data-smartkarma-citation="entities:20960:1">Overseas Education Ltd (OEL SP)</a> reported their final quarter and full-year results on Wed 13th February. As we alluded to in previous notes on the company (here: <a href="https://www.smartkarma.com/insights/overseas-education-ltd-oel-sp-more-pain-to-come-as-weak-enrolment-points-to-3q-miss" target="_blank" data-smartkarma-citation="insights:14716">Overseas Education Ltd (OEL SP) - More Pain to Come as Weak Enrolment Points to 3Q Miss</a> and here: <a href="https://www.smartkarma.com/insights/3q-earnings-disappoint-as-expected" target="_blank" data-smartkarma-citation="insights:15220">3Q Earnings Disappoint as Expected</a>) the pressure on earnings from weak enrolments and a high fixed cost base has persisted.Fourth quarter and full-year enrolment, and hence tuition fee and registration fee revenue, was broadly in-line with…

Overseas Education Ltd (OEL SP) reported their final quarter and full-year results on Wed 13th February. As we alluded to in previous notes on the company (here: Overseas Education Ltd (OEL SP) - More Pain to Come as Weak Enrolment Points to 3Q Miss and here: 3Q Earnings Disappoint as Expected) the pressure on earnings from weak enrolments and a high fixed cost base has persisted.Fourth quarter and full-year enrolment, and hence tuition fee and registration fee revenue, was broadly in-line with…

Rationalised Cost Base Points to Better Earnings in FY18

<a href="https://www.smartkarma.com/entities/20960" target="_blank" data-smartkarma-citation="entities:20960:1">Overseas Education Ltd (OEL SP)</a> reported 3Q17 results on 9/11. In a recent insight ( <a href="https://www.smartkarma.com/insights/overseas-education-ltd-oel-sp-more-pain-to-come-as-weak-enrolment-points-to-3q-miss" target="_blank" data-smartkarma-citation="insights:14716">Overseas Education Ltd (OEL SP) - More Pain to Come as Weak Enrolment Points to 3Q Miss</a>) we warned that earnings were likely to continue to disappoint.Indeed, revenue came in marginally below (-1.8%) our estimate, down 6.9% QoQ and 3.5% YoY. Critically, personnel expenses which make-up 84% of total costs also fell 8.0% QoQ and 10.2% YoY. Despite EBITDA of $6.2m being in-line with our expectation, higher than…

Overseas Education Ltd (OEL SP) reported 3Q17 results on 9/11. In a recent insight ( Overseas Education Ltd (OEL SP) - More Pain to Come as Weak Enrolment Points to 3Q Miss) we warned that earnings were likely to continue to disappoint.Indeed, revenue came in marginally below (-1.8%) our estimate, down 6.9% QoQ and 3.5% YoY. Critically, personnel expenses which make-up 84% of total costs also fell 8.0% QoQ and 10.2% YoY. Despite EBITDA of $6.2m being in-line with our expectation, higher than…

<h2>Key Takeaways</h2><ul>
<li>The weak expat labour market and increasing competition between schools drove enrolment lower 4-4.5% QoQ and a 5.4% decline in revenue QoQ;</li>
<li>Negative operating leverage to impact earnings despite rationalization of teaching staff. We forecast that FY17 net income of S$6.4m will fall short of consensus estimates of $8.0m; and,</li>
<li>Strong balance-sheet is backed by positive FCF which underpins dividend and 7.4% yield, though is yet to reach trough in earnings.</li>
</ul><h2>Background</h2><a href="https://www.smartkarma.com/entities/20960" target="_blank" data-smartkarma-citation="entities:20960:1">Overseas Education Ltd</a>…

Key Takeaways
The weak expat labour market and increasing competition between schools drove enrolment lower 4-4.5% QoQ and a 5.4% decline in revenue QoQ;
Negative operating leverage to impact earnings despite rationalization of teaching staff. We forecast that FY17 net income of S$6.4m will fall short of consensus estimates of $8.0m; and,
Strong balance-sheet is backed by positive FCF which underpins dividend and 7.4% yield, though is yet to reach trough in earnings.
BackgroundOverseas Education Ltd…

Overseas Education Ltd (OEL SP) - More Pain to Come as Weak Enrolment Points to 3Q Miss

Singapore

Overseas Education Limited is a private foreign school system in Singapore offering the K-12 IB curriculum. The Company provides a globalised multi-cultural environment to children aged between 3 and 18 years.

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Overseas Education (OEL SP)

International Education Stocks: Surging Student Volumes

International education is surging following the end of the pandemic. China's re-opening will turbo-charge a sector that already booming from South...

Edward Slade

Strong Enrolments Positive for FY18/19, 8% Yield Sustainable.

Overseas Education Ltd (OEL SP) reported their first quarter 2018 results recently. Though the company’s bottom line was marginally below...

Lloyd Moffatt

Rationalised Cost Base Points to Better Earnings in FY18

Overseas Education Ltd (OEL SP) reported their final quarter and full-year results on Wed 13th February. As we alluded to in previous notes on the...

Lloyd Moffatt

3Q Earnings Disappoint as Expected

Overseas Education Ltd (OEL SP) reported 3Q17 results on 9/11. In a recent insight ( Overseas Education Ltd (OEL SP) - More Pain to Come as Weak...

Lloyd Moffatt

Overseas Education Ltd (OEL SP) - More Pain to Come as Weak Enrolment Points to 3Q Miss

Key Takeaways The weak expat labour market and increasing competition between schools drove enrolment lower 4-4.5% QoQ and a 5.4% decline in...

Lloyd Moffatt

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