Wall Street Transcript Interview with Ella Ji, Executive Director and Senior Analyst for Oppenheimer & Co.: Chinese Education Companies Grow in Pricing and Enrollment

Wall Street Transcript

67 WALL STREET, New York - September 10, 2012 - The Wall Street Transcript has just published its Education Report offering a timely review for serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Enrollment and Retention Trends - Regulatory Risks - Chinese Education Growth Catalysts - For-Profit Institutions - Online Content Distribution

Companies include: New Oriental Education & Techn (EDU), China Distance Education Holdi (DL), ChinaEdu Corporation (CEDU), ATA, Inc. (ATAI) and many others.

In the following excerpt from the Education Report, an experienced equity research analyst from Oppenheimer & Company discusses the outlook for the Chinese Education sector for investors:

TWST: If you would, please start by giving readers a snapshot of your coverage universe.

Ms. Ji: I cover the Chinese consumer and business services companies which are listed in the U.S. Within that, I have a few sectors - education, economic lodging, real estate services and financial services. So education is a core sector within my coverage, and I have covered it since 2007.

I currently cover five companies. They are New Oriental Education (EDU) and TAL Education (XRS); and three smaller companies, China Distance Learning (DL); ChinaEdu (CEDU) and ATA (ATAI). In addition, I'm quite familiar with a couple of others in the space, such as Xueda Education (XUE) and Ambow Education (AMBO).

TWST: What is your overall sentiment on the education group right now, and why?

Ms. Ji: Fundamentally, I remain very bullish about this industry, especially regarding its topline growth. I expect that this industry can grow in the midteens despite China's macroeconomy slowdown. The growth would be driven by both price increases and enrollment expansion. I think the resiliency of this industry is a big plus and makes it one of my favorite industries historically.

That being said, we do know that the SEC is now performing an investigation on the bellwether New Oriental Education regarding its VIE structure. This has caused some uncertainties for the entire industry, and as such we expect that the stock prices will remain range-bound until the SEC investigation is concluded.

TWST: How big is the market for these companies in China, and what sort of growth prospects are there?

For more from this interview and many others visit the Wall Street Transcript Online - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is also available by calling (212) 952-7433.

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