Education: DeVry Deal Showcases Corporate Opportunity
While big question marks loom over many of China’s growth industries like high-tech and alternate energy, one area that seems resistant to the turbulence is education, as evidenced by a new deal announced by a unit of US education services giant DeVry (NYSE: DV). The announcement is short and simple, saying the China licensee of Becker Professional, DeVry’s finance education arm, will provide education services to GE’s (NYSE: GE) China employees to bring them up to global accounting standards. (company announcement) I’ve said before that I’m quite bullish on the education sector, as Chinese and many Asians in general have shown a willingness to invest lavishly on themselves and their children to improve their chances in these ultra-competitive societies — even and perhaps especially in times of economic trouble. Chinese companies have been the first to realize and take advantage of this seemingly recession-proof demand, with industry leaders New Oriental Education (NYSE: EDU) and TAL Education (NYSE: XRS) both reporting their revenue rose around 60 percent in the second quarter, though each gave more conservative guidance for the third quarter. (previous post) Still, those kinds of numbers, when other sectors are reporting much slower growth, should certainly be catching the attention of major Western players like DeVry and Disney (NYSE: DIS), which last year officially launched a chain of Disney-branded English learning schools for pre-school and elementary school aged children. The corporate tie-up like the one just announced by DeVry is a sign of things to come, as Western companies and Chinese alike look to bring their employees up to international standards with this kind of educational corporate tie-up. As that happens, look for both the domestic and international players to keep notching strong growth in this market thirsty for education services.
Bottom line: DeVry’s new education services deal with GE China reflects continuing strong demand for such services from both Chinese consumers and businesses and bodes well for the sector.
Related postings 相关文章:
◙ New Oriental Shows Why Education Pays 新东方告诉你为何教育会有回报
◙ China NY Stocks on Cusp of Comeback? 中国赴美上市公司股票即将触底反弹？
