On November 30, 2020, Yahoo.com published an article titled “Global investors see China stocks bull run lasting well into 2021”
In it, the article states, “Global investors are betting Chinese stocks will extend their bull run and that mainland corporate earnings in 2021 will be boosted by a world economic recovery and more predictable Sino-U.S. relationship.
Chinese onshore stocks have already jumped over 20% this year thanks to the economy’s early recovery from coronavirus. Another bumper year is ahead, investment banks say.”
The article cites Goldman Sachs’ China outlook report, “forecasting a 20% rebound in Chinese corporate profits, and staying overweight Chinese equities: ‘China will deliver one of the strongest and fastest macro recoveries in 2021 among major economies globally.’”
In addition, “Morgan Stanley also remains overweight China, forecasting ‘solid’ earnings growth amid the backdrop of a strong, broad-based global recovery, and a potentially more predictable trade environment once Joe Biden replaces Donald Trump in the White House.”
The article writes that “Global fund giants including BlackRock, JPMorgan and Vanguard have already boosted their exposure to Chinese equities this year, according to Citic Securities, and foreign inflows will likely accelerate further.”
“In a survey published last week by HSBC of nearly 1,000 top global institutional investors and large corporations, 62% of them said they plan to increase their China portfolio by an average of 25% over the next 12 months. Among the equity investors, 71% are looking to increase China exposure.”
On the same day, Yahoo.com also published another article by Henry Khederian, titled “Will Nio Or Xpeng Stock Grow More By 2025?”
In it, Khederian discussed two Chinese EV companies listed on NYSE that “Every week, Benzinga conducts a sentiment survey to find out what traders are most excited about, interested in or thinking about as they manage and build their personal portfolios.”
About 67% of traders and investors said shares of Nio would grow more in the next five years.”
In light of these two articles, let us turn to a high growth area which has been benefitting tremendously from the pandemic: the Ed-Tech sector. In particular, let us consider the specific Ed-Tech value stock that is China Education Resources Inc. (“CHNUF”). Based in Vancouver, Canada and with business in China, CHNUF is perfectly poised to cater towards the intensified e-learning market demands which have arisen as a direct result of the COVID-19 pandemic. CHNUF is a publicly-listed ed-tech company (TSX-V – CHN and OTCQB – CHNUF) with leading technology inintelligent system and contents. It provides online/offline learning, training courses, and social media for teachers, students and education professionals; these are all increasingly integral aspects of education in the contemporary era. CHNUF has 2 million kindergarten through twelfth-grade teachers registered through its web portal in China.
CHNUF’s online education platform and services provide a vertically blended learning, teaching, research and management system for a student-teacher-school-parent community. CHNUF’s products and services facilitate a significantly more efficient and enriched virtual educational experience for both teachers and students, most especially during a time when online education has become the backbone of many societies around the world. In combination with the circumstances and demands which have arisen as a result of the COVID-19 pandemic, we believe that China Education Resources’ numerous attributes will provide the Company with great long-term revenue potential.
CHNUF has 47,364,983 common shares outstanding. CHNUF generated US$9,390,402 revenue in 2019. CHNUF made US$978,466 net income in Q2 2020 (earnings per share $0.02).
China Education Resources Inc. (CHNUF) current price is $0.04 per share (P/S Ratio of 0.20, P/E Ratio of 2)
In comparison with CHNUF, the ratios of some larger education companies or organizations are as follows: *
|1. Chegg, Inc. (CHGG)||P/S Ratio of 22||P/E Ratio of 5,375|
|2. New Oriental Education & Technology Group Inc. (EDU)||P/S Ratio of 6.8||P/E Ratio of 58|
|3. GSX Techedu Inc. (GSX)||P/S Ratio of 84||P/E Ratio of 700|
|4. TAL Education Group (TAL)||P/S Ratio of 13||P/E Ratio N/A|
|5. Genius Brands International, Inc. (GNUS)||P/S Ratio of 42||P/E Ratio N/A|
|6. Microsoft Corporation (MSFT)||P/S Ratio of 11||P/E Ratio of 35|
|7. NVIDIA Corporation (NVDA)||P/S Ratio of 27||P/E Ratio of 107|
|8. Zoom Video Communications, Inc. (ZM)||P/S Ratio of 232||P/E Ratio of 654|
|9. DocuSign, Inc. (DOCU)||P/S Ratio of 40||P/E Ratio N/A|
|10. Slack Technologies, Inc. (WORK)||P/S Ratio of 19||P/E Ratio N/A|
(*Calculations are based on figures from Yahoo Finance as of Sept. 23, 2020)
EmergingGrowth.com is a leading independent small cap media portal with an extensive history of providing unparalleled content for the Emerging Growth markets and companies. Through its evolution, EmergingGrowth.com found a niche in identifying companies that can be overlooked by the markets due to, among other reasons, trading price or market capitalization. We look for strong management, innovation, strategy, execution, and the overall potential for long- term growth. Aside from being a trusted resource for the Emerging Growth info-seekers, we are well known for discovering undervalued companies and bringing them to the attention of the investment community. Through our parent Company, we also have the ability to facilitate road shows to present your products and services to the most influential investment banks in the space.