In a special report on investing in China, global expert John Christy looks at New Oriental Education (NYSE: EDU). Here's the latest from The Forbes International Investment Report.
"No discussion of 'traditional Chinese values' can be complete without mentioning the importance of education. The Chinese education ethic intersects with the country's recent embrace of capitalism in New Oriental Education, China's leading private education company.
"Founded in 1993, New Oriental is one of China's great entrepreneurial success stories, making its founder and chief executive Michael Yu a billionaire. The company operates a network of nearly 250 schools and learning centers in 38 cities across China.
"These schools teach English, foreign languages, test preparation and more. Think of it as a cross between Berlitz and Kaplan, but with a much bigger target audience.
"New Oriental sells for 43 times analyst forecasts for fiscal 2009 earnings. While that's not cheap, New Oriental has a dominant position in its market and a history of delivering growth. Earnings are expected to grow 50% next year.
"And thanks to the high priority that many Chinese place on education, New Oriental's services aren't as much of a 'discretionary' purchase as they might seem. Demand for most of New Oriental's courses should hold up well even if China's economy cools."
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Reader Comments (Page 1 of 1)
10-30-2008 @ 3:29PM
Arch Angle said...
Ironic, the Chinese focus on education (read: indoctrination).
What the Chinese are educated to do is follow and conform.
Which is why after ten years of English study they still need English study, once they get to work and realize, they can't ask for a glass of water if their pants were on fire.
And then many shoot themselves in the foot by taking a ridiculous English name like "Hitler" or "Qly", then wonder why "foreign companies have racist promotion policies".
Meanwhile, 8th grade civics concepts are "too hard". But at least the ESL teacher is a really light shade of white.
GMAFB.
10-31-2008 @ 7:59AM
merle t cornpone said...
Wow, you are clearly clueless about China.
Why don't you go to work for the CIA? They pay well for propaganda to be distributed by AP. ( The Dalai Lama has made $15,000 a month since the 50's working for the CIA as a China irritant) Human Rights Watch and Reporters without Borders are also high up on the CIA contributions list.
How many Americans could learn Chinese pictographs quickly?
Your comment lacks any real substance and smacks of bigotry and bias.
If you speak with anyone who has actually been there ( I have) they will tell you that it is quite different than the US propaganda machine would have you believe.
10-31-2008 @ 12:41PM
Arch Angle said...
Um, I've taught English in Shanghai for over 5 years.
I do realize I sound biased. It is a biased situation.
But then, those who speak up for individual rights are usually the first to be called prejudiced.
In case you haven't noticed, the issue of my comment is the hypocrisy of quantity over quality education. The students are so busy preparing for a university entrance exam that will determine the rest of their lives, that they don't realize they are systematically being turned into followers and being deprived creativity and application, skills normally associated with innovation. But hey I must be wrong, otherwise China would have a reputation for knockoffs wouldn't it - oh.