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The latest documents disclosed by the Hong Kong Stock Exchange show that Tencent sold New Oriental online stocks in a row on June 15 and June 16, reducing a total of 74.6 million shares and cashing out about 719 million Hong Kong dollars. 9.04% plummeted to 1.58%. According to calculations, Tencent’s sale of New Oriental Online shares this time will yield about 1 times the rate of return.
After 6 years of firm holding of shares, at a time when New Oriental’s live broadcast is now popular on the whole network, Tencent, an important shareholder who was once caught in a floating loss, “receives it as soon as it is good” in the process, and makes a clearance-style reduction, at a price close to 9.7 Hong Kong dollars. A large proportion of New Oriental Online has been reduced, and New Oriental Online has soared to 33.15 Hong Kong dollars recently.
After holding shares for 6 years, Tencent liquidated its holdings and cashed out 700 million Hong Kong dollars from New Oriental Online
The latest equity disclosure document of the Hong Kong Stock Exchange shows that Tencent Holdings Limited sold 35,612,500 shares of New Oriental Online on June 15 at an average price of HK$9.6168 per share, and the cash out amount was about HK$342 million; the number of its shares fell to 54.8037 million shares, the shareholding ratio dropped to 5.48%.
After that, on June 16, Tencent continued to sell 38,991,400 shares of New Oriental Online at an average price of HK$9.6755 per share, cashing out about HK$377 million; as a result, the number of shares it held also dropped to 15,812,200 shares, and its shareholding ratio fell to 1.58%. According to the latest stock price, Tencent’s latest holdings have a market value of HK$268 million.
In two days, Tencent has reduced its holdings by a total of 74.6 million shares and cashed out 719 million Hong Kong dollars, which is almost a clearance-style reduction.
In fact, Tencent has strategically invested in New Oriental Online since 2016, after which New Oriental Online landed on the Hong Kong Stock Exchange in March 2019. Tencent has held the stock firmly for more than 6 years. Even in the most difficult time of New Oriental, when the stock price once fell to a low of 2.84 Hong Kong dollars per share, Tencent did not sell a share.
It is understood that the total investment amount of Tencent’s investment in New Oriental Online is about 50.8772 million US dollars, equivalent to 400 million Hong Kong dollars, and the investment cost is 0.5627 US dollars / share, about 4.42 Hong Kong dollars / share.
New Oriental Online also experienced a glorious moment after its listing. The stock price rose to a stage high of HK$43.45 per share in July 2020. At that time, Tencent, as a shareholder, did not sell its shares and did not choose to cash out at a high level.
Since then, New Oriental Online has fluctuated and declined. By May this year, its share price had fallen to a stage low of HK$2.84 per share. It can also be seen that Tencent had a floating loss of 36%, but it did not do anything.
In June of this year, New Oriental’s live broadcasts attracted market attention, and the stock price began to soar. Tencent, which has long held shares, finally began to reduce its holdings. If the cost price of 400 million Hong Kong dollars is calculated, this time Tencent reduced its holdings and cashed out 719 million Hong Kong dollars. The income will probably double about doubled.
Industry insiders believe that Tencent’s investment and current reduction are not speculative considerations. Now that New Oriental has withdrawn from the education and training industry in an orderly manner, and transformed into live broadcasts and knowledge-based products, the future development prospects are still worth looking forward to.
New Oriental Online’s stock price plummeted after the sharp rise. Yu Minhong confirmed that there were institutions to recruit teachers such as Dong Yuhui
From obscurity to popularity, New Oriental and its subsidiary Oriental Selection are undoubtedly the focus of the market in the past two weeks.
From Dong Yuhui’s video blowing up the circle of friends, to netizens complimenting New Oriental’s transformation into bilingual live broadcasts, the stock price of Hong Kong stock New Oriental Online also rose sharply, rising for 9 consecutive days, rising 54.19% on June 15, 6 On the 16th, it even rose 72.71% (PS: Tencent sold it in the two days when New Oriental Online rose strongly); although there have been corrections in the past two trading days, it fell 12.59% last Friday, and continued on Monday. It fell 32.08%, but its increase since June still reached 358.92%.
According to the latest live broadcast data, the current number of fans in Dongfang Selection has exceeded 17 million. It took a long time to break through 1 million, but it took just a few days to break through 10 million. Dongfang Selection increased by 282 in a single day on June 16. million fans. Behind this is the New Oriental teacher represented by Dong Yuhui. Every day around 7 o’clock, he starts to live broadcast bilingually, recite poems, sing and play the piano, etc., and talk about history, life, literature, etc. with netizens. After a few days, I also felt that I had gained a lot.
Judging from the GMV data, the live broadcast of Dongfang Selection has exceeded 310 million yuan in the past 30 days. On June 16 alone, the number of viewers exceeded 60 million, and the daily GMV was as high as 68.8 million yuan. From June 13 to June 17 Today, the 5-day GMV exceeded 200 million yuan.
But “there are many popular people”, we have also seen various news on the Internet in the past two days.
For example, recently, the live broadcast teachers of New Oriental represented by Dong Yuhui have become popular. According to media reports, Yu Minhong said in a live broadcast that there are indeed institutions poaching them. He said that New Oriental should not only recognize their interests, but also give them a bigger platform for development. He doesn’t want to turn them into a tool for New Oriental to make money, but wants them to grow really well. When they grow up to the end, they feel that the platform of New Oriental is not enough. They will be very happy when they leave New Oriental, because they have gone out from New Oriental.
In addition, according to the Farmer’s Daily, some netizens questioned that “6 yuan for a corn” in the “Oriental Selection” live broadcast room is too expensive, and the prices of agricultural products with goods are generally high. In response, the anchor Dong Yuhui responded, “Low price of grain hurts farmers”. If something is completely unprofitable, there will be fewer and fewer people farming in rural areas, so the price cannot be too low.
The only heavy-holding fund rebounded by more than 50%
The short-term counterattack of New Oriental also led to the rapid recovery of the net value of the Bosera Education ETF, the only heavy-holding fund in the market, which is also the only education-themed fund in the entire market.
The education ETF was established in June 2021. It was “not born at the right time”. Only one month after its establishment, the “double reduction” policy was introduced. Since then, the net value has been falling all the way, and the yield so far is -55.99%. However, there have been constant bargain-hunting funds entering the market. In the fourth quarter of last year, the size of the fund nearly doubled to 613 million, and it remained stable at 605 million in the first quarter of this year.
Since the fund’s establishment, New Oriental has been ranked among its top ten heavyweight stocks, and has continued to increase its positions for three consecutive quarters. By the end of the first quarter of this year, New Oriental had become its largest holding stock, holding 8.4153 million shares, accounting for 10.16% of its net value, with a high weight.
Since the “Oriental Selection” live broadcast room became popular, the net value of education ETFs has continued to rise, and has rebounded by more than 50% since the lowest point on April 27, and reached the daily limit on June 16. According to Bosera Fund, the size of the fund has risen rapidly recently, and it has now exceeded 700 million yuan.
Fund manager Wan Qiong said that the direction of New Oriental’s transformation is to maintain the advantages of studying abroad and adult examination and training, and the transformation of the Youth Department focuses on quality education and the development of research camps. New Oriental Online maintains the university business, actively explores intelligent hardware, education informatization, live broadcast business, etc. These are all attempts at transformation. The rebound of the stock price is mainly due to fundamentals + favorable policy introduction + sentiment-catalyzed valuation ushered in repair. The follow-up still depends on the company’s profitability. Investors are advised to stick to regular investment, open positions on dips, and pay attention to profit and loss.
Regarding the education sector, she said that the current valuation of the higher education sector is still at a historically low level. With the implementation of subsequent profitable options and the introduction of more detailed policies for the construction of the vocational education system, the sector valuation is expected to usher in continuous repairs; In the background, the demand for vocational training and academic qualifications is expected to increase significantly. With the progress of resumption of work and production after the epidemic, the performance is expected to recover quickly; as for education and training, after divesting the K9 discipline business, the major leading education and training companies have basically completed it. Business adjustment, new business has gradually improved.
Source: China Fund News
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