The reason why Puxin education can't last long;
1. Status of Puxin Education Group: Puxin Education was established on 20 14. Affected by the double-drop policy, the share price of Puxin Education Group fell by 23.76%. Under the double reduction policy, Puxin Education regards programming education as one of the transformation directions.
2. At the beginning of September this year, Dianmao Technology, the programming cat parent company, and Puxin Education reached a strategic cooperation and will launch a programming course. Puxin Education was particularly eye-catching when it went public, because its development strategy was "to be bigger first, then to be stronger", which helped Puxin Education achieve leap-forward growth and made its revenue at the time of listing the third place besides New Oriental and a good future.
3. The acquisition plan of Puxin Education is difficult to turn losses into profits in the short term, because the acquisition of enterprises will generate greater costs and expenses. As long as it is still losing money, it is difficult to raise the valuation of the stock. In addition, Puxin Education's consulting service for studying abroad was adversely affected by the COVID-19 epidemic, and its income dropped by 39.9% to 677 million yuan. The financial report also pointed out that Puxin Education expects the company's net income in the first quarter of 20021year to be between 683.7 million yuan and 721300 million yuan, down 4%-9% year-on-year. The overseas study business is limited by the epidemic and is expected to remain in a downturn for some time.
The Development Model of Puxin Education Group
1. Puxin Education changed its scale through mergers and acquisitions. At the same time, with the help of financial advantages, Puxin Education has made massive acquisitions and expansions. As of March 3 1 2065438, * * * has acquired 48 schools and established 397 learning networks, covering 35 cities in 9 provinces in China. Among them, there are 34 local K 12 teaching and training institutions and 4 overseas training institutions. In 20 18, the number of students reached 1846400, up 44.7% year-on-year.
2. At the same time, from the perspective of business income, Park Shin Education lags behind New Oriental and Good Future, and Park Shin Education has not yet made a profit, while the profit of New Oriental and Good Future has been equivalent to the revenue of Park Shin Education, and the volume of Park Shin Education is still far behind the two leading companies in the education industry, but Park Shin Education has the fastest growth rate in business income. In fact, the expansion of Park Shin Education slowed down in the third quarter because of the introduction of the "No Additional Order" in August this year, "Education"
From 3.20 17 to 20 19, the gross profit margin of Puxin Education was 38%, 44% and 48% respectively. In 2020, the gross profit margin was 46%, falling for the first time. In addition, the growth rate of the number of students who have contributed to income has also slowed down significantly. From 20 17 to 20 19, the growth rate of students in general education was 180%, 45% and 56% respectively, while the growth rate in 2020 was only 28.2%.