Hot Stock’s Alert: Sunlands Online Education Group (NYSE:STG)

Sunlands Online Education Group (NYSE:STG) closed with change of -0.99% to $9.99 with the total traded volume of 122464 shares versus to an average volume of 734.42K. The stock was up in the 5 days activity 0.30%. The one month performance of stock was 24.72%. STG shares are at – for the quarter and driving a – return over the course of the past year and is now at -10.00% since this point in 2018.  The average volatility for the week and month was at 5.98% 7.06% respectively.

Sunlands Online Education Group (NYSE:STG), a leader in China’s online post-secondary and professional education, today announced its unaudited financial results for the first quarter ended March 31, 2018.

First Quarter 2018 Financial and Operational Highlights

  • Net revenues were RMB406.4 million (US$64.8 million), representing a 161.1% increase year-over-year.
  • Gross billings (non-GAAP) were RMB929.2 million (US$148.1 million), representing a 125.5% increase year-over-year.
  • Gross profit was RMB335.7 million (US$53.5 million), representing a 146.4% increase year-over-year.
  • Net loss was RMB245.2 million (US$39.1 million), representing a 146.8% increase year-over-year. Net loss margin, defined as net loss as a percentage of net revenue, decreased to 60.3% from 63.8% in the first quarter of 2017.
  • New student enrollments were 152,140, representing a 128.6% increase year-over-year.
  • As of March 31, 2018, deferred revenue balance was RMB2,619.1 million (US$417.6 million).

Mr. Tongbo Liu, Chief Executive Officer of Sunlands, said, “We are pleased to deliver a strong set of results following our initial public offering on the NYSE. Our investments in higher quality educational offerings, our IT platform and distinctive marketing initiatives to attract more students led to robust growth in new student enrollments and net revenues during the first quarter. This enabled us to gain market share and strengthen our leadership position in China’s online post-secondary and professional education market.”

Mr. Liu added, “Looking forward, we are excited by the growth potential of the higher education market in China. According to iResearch, as of December 31, 2017, there were over 600 million people between the ages of 18 and 48 without a bachelor’s degree in China. Our online tutoring services are designed to address this enormous unmet demand and provide a path for underserved adult students to significantly improve their employment and career prospects. We will continue to invest in long term initiatives to unlock the potential market and attract more students to our platform, enhance our content and teaching quality, and upgrade our IT platform. We are confident that these investments will enable us to continuously improve the student experience and sustainably grow our market share.”

Mr. Steven Yipeng Li, Chief Financial Officer of Sunlands, said, “During the first quarter, we delivered strong financial results with net revenue increasing 161.1% year-over-year and net cash provided by operating activities of RMB226.3 million. Bolstered by the recent capital infusion from the IPO and a significant and growing deferred revenue base, we have the resources that we need to continue to build our online education platform and attract more students. We look forward to growing our market share and realizing the growth potential of our highly scalable business model in the coming quarters.”

Shares of Sunlands Online Education Group have been recently spotted trading -29.05% off of the 52-week high price. On the other end, company shares have been noted 46.91% away from the low price over the last 52-weeks. 52 week range of the stock remained $ 6.80 – 14.08. Switching over to some distances from popular moving averages, we see that the stock has been recorded 12.00% away from the 50 day moving average and 12.00% away from the 200 day moving average. Moving closer, we can see that shares have been trading 5.62% off of the 20-day moving average.

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Nattan Brooks

Nattan is a self-taught investor and follows the value investing approach to picking stocks. He possesses over 10 years of investment experience, an M.B.A. from Louisiana State University, and is also certified in Risk Management Assurance. Nattan is a Certified Internal Auditor, Data Miner, and author with a career broadly spanning over multiple business areas. He has exploited those observations and developed investment tactics within a fundamentally sound long-term investment strategy. He currently covers Earnings News category for our site.Address: 4188 Spadafore Drive, Erie, PennsylvaniaPhone number: 814-705-9247Email: [email protected] 

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