IDP Education logo

IEL - IDP Education News Story

A$23.55 -0.6  -2.3%

Last Trade - 05/03/21

Sector
Industrials
Size
Large Cap
Market Cap £3.64bn
Enterprise Value £3.56bn
Revenue £265.3m
Position in Universe 92nd / 1857

BUZZ-Morgan Stanley: Rising China-Australia tensions? No sweat for IDP Education

Wed 9th December, 2020 11:44pm
** Morgan Stanley says IDP Education's  IEL.AX  reduced
dependence on China as a source region for student placements
lessens the impact on it from rising Sino-Australia tensions
    ** IDP's China placement enrolments dropped 11% in FY20 https://bit.ly/2LhEU1j
 due to COVID-19 restrictions, although total enrolments across
its markets were up 3%
    ** China's share as IDP's source has fallen to 21% in FY20
from 28% in FY16 https://bit.ly/37K8cNO; in contrast, India as a
source has seen a remarkable growth - 43% in FY20 from 16% in
FY16
    ** MS says, "If Chinese students stopped coming to
Australia, we would expect an about 4% impact on gross profit
(GP)" - about A$15 mln ($11.15 mln); IDP reported FY20 GP of
A$345.2 mln
    ** Brokerage also sees dependence of Australian universities
on IDP increasing to fill the volume gap if Chinese students
stop coming to Australia
    ** Chinese students enrolling for destinations other than
Australia could offset some impact on GP - MS
    ** Six of 10 analysts rate the stock "buy" or higher, three
"hold" and one "sell"; their median PT is A$21.14 – Refinitiv
data
    
    ($1 = 1.3455 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com;))
© Stockopedia 2021, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.