Learning and thinking will be a full price increase? Make up for "reinvestment" profit gap

In the 2013 fiscal year, the study and thought streamlined 15 teaching centers, profit margins gradually increased; in the 2014 fiscal year, the CFO Kaufman said that learning and thinking would go into the reinvestment phase and expand markets outside Beijing. Expansion period how to balance the profits, to shareholders and the market an account? Tuition price increase or become learning and think "reinvestment" endorsement. A person in the industry revealed that the study and thinking of the recent plan to raise prices to improve profit margins, tuition fee increases in 15%~20%. He believes that the overall efficiency of learning and thinking is high, resulting in a decline in profit margins in the two years due to a sharp rise in classroom rents and teacher pay. In the past year, learning and thinking has not carried out a wide range of prices, the overall level of stability: the 2013 fiscal year Q4 quarterly display, learning and thinking revenue 59.6 million U.S. dollars, the number of students 250,700, ASP (average price, that is, per capita tuition) for 238.4 dollars, this figure and the same period last 2012 fiscal year Q4 and thought revenue 52.22 million U.S. dollars, trainees number 228,500 people, ASP about 229 U.S. dollars. Learn to think CFO Kaufman also said at an analyst meeting that revenue growth in fiscal year 2013 was driven mainly by increasing the number of trainees, rather than by raising the ASP. In addition, compared to competitors, learning to think of the level of tuition still has a certain price increase space: Singapore independent research company Goldpebble A study before, said that learning and thinking ASP overall lower than the new Oriental 24.9%. Into the 2014 fiscal year, learn to think of the game will have some changes, "reinvestment" is a key word. Off-site revenue less than 30%, when the "home" Beijing has long been plagued by the ban, learning and think desperately need to find more markets to support its growth. "Reinvestment" is a big expansion – with 30 new teaching centers in the first half. But when the expansion brings more income, it will also directly affect the profit margin, then learn and thought to the price increase. Kaufman has revealed that for learning to think about, the increase in tuition fees on small class business, the impact of a small business. The current study and think of revenue composition is: 75% small classes, 22% one-to-one, 3% school. So, the price is a step late to the good chess, or forced to break the wrist? (More knowledge net Andy)