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2469 — Fenbi News Story

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Chinese education co Fenbi's H1 revenue falls, posts net loss

Chinese education co Fenbi's H1 revenue falls, posts net loss


Overview

  • China online education provider's H1 revenue fell 16% yr/yr

  • Company posted net loss for H1, compared to profit a year earlier

  • Average monthly active users declined to 8.5 mln from 9.3 mln


Outlook

  • Company did not provide specific guidance or outlook commentary in the press release


Result Drivers

  • LOWER USER ENGAGEMENT - Average monthly active users fell to 8.5 mln from 9.3 mln, contributing to revenue decline

  • HIGHER OPERATING COSTS - Administrative, selling, and R&D expenses rose year-over-year, weighing on profitability

  • CIVIL-SERVICE EXAM PRESSURE – Tutoring revenue fell 17.5% as fewer civil-service exam positions and intensifying training-sector competition reduced demand


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

H1 Revenue

RMB 1.25 bln

H1 Net Loss Attributable

RMB 183.5 mln


Analyst Coverage

  • The one available analyst rating on the shares is "buy"

  • The average consensus recommendation for the miscellaneous educational service providers peer group is "buy"

  • Wall Street's median 12-month price target for Fenbi Ltd is HK$5.22, about 1,413% above its August 27 closing price of HK$0.35

  • The stock recently traded at 2 times the next 12-month earnings vs. a P/E of 5 three months ago


Reuters Recommended Reads

  • Aug 27 - China's Gaotu Techedu Q2 revenue rises 20% on growth in gross billings

  • Aug 25 - China's Minsheng Education H1 revenue dips 1.3%

  • Aug 26 - South China Vocational Education's H1 revenue rises on higher enrollment and fees


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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