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IEL - IDP Education News Story

A$23.55 -0.6  -2.3%

Last Trade - 05/03/21

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
 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; in contrast, India as a
source has seen a remarkable growth - 43% in FY20 from 16% in
    ** 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
    ($1 = 1.3455 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
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