Comment: The stock price has plummeted 95%of the new Oriental rolls. The stock price h

Source: Bloomberg

Author: Charlotte Yang

One of the biggest losers in China's rectification of private sector, after adjusting the business model, it was accidentally become the stock market winner this year.

New Oriental Education Technology Group has expanded its business to e -commerce and tourism. This year's stock price has doubled more than doubled. Previously, China rectified the education industry. The company's stock price fell from the highest point of history by more than 95%.New Oriental is now among the Golden Dragon China Index gains in the Nasdaq.

The current transaction price of the stock is the highest level since July 2021. This month China introduced double reduction measures to comprehensively reform the private education industry.Although it is still far lower than the highest stock price in history, New Oriental has rebounded through the withdrawal of some competitors and providing new services.

Nikko Asset Management Asia LTD. Investment Portrait Manager Grace Yan said that a Chinese company was hit by various regulations, but successfully achieved business transformation and regaining growth. This story is fascinating.They have successfully expanded to the field of live e -commerce and are now involved in the field of cultural tourism.

Before Beijing rectified the private education industry, the industry had grown to $ 100 billion.After facing severe measures and fierce industry competition, some participants withdrew from the industry.

Large companies like New Oriental benefit from increasing market share.Data compiled by Bloomberg show that the company has recorded revenue by 48%year -on -year in the last quarter, and the gross profit margin hit the highest since 2017.

Morgan Stanley analyst Eddy Wang wrote in a recent report that the strength of the new business department and the characteristics of the traditional department should help promote the sustainable growth of some leaders of the education market.The securities firms give the initial rating of super -matching the new Oriental and competitors.