의정부 토익 과외
converting these into operating costs. Secondly, most of the capex in coming years will flow into the K-12 school expansion. Each school demands Rs120-140m in capex and depreciation will be up to 40 years. Over FY08-11, we expect US$450m+ in capex from Educomp. This funding is nearly secured, including a line of credit from an SBI-led consortium, two convertible issuances already done (our EPS is fully diluted) and internallygenerated funding. Educomp’s capex needs exclude leasing alliances 0 2,000 4,000 6,000 8,000 10,000 12,000 FY06 FY07 FY08CL FY09CL FY10CL FY11CL K-12 schools Pre-schools ICT Smart Class (Rsm) About half of the capex needs for Smart Class and ICT may be addressed thru leasing alliances Source: CLSA Asia-Pacific Markets K-12 to dominate capex Leasing reduces Smart Class and ICT capex requirements The ICT market could grow tenfold in five years Educomp Solutions - BUY Indian education 68 bhavtosh.vajpayee@clsa.com 14 March 2008 Expansion into adjacent businesses While the growth in Smart Class, ICT and now K-12 seem to dwarf other business initiatives, there are several in play. For example, e-learning via www.mathguru.com has doubled subscriptions between the Sep07 and Dec07 quarters to more than 30,000, and we expect it to do so again in FY09 to exceed 60,000. Apart from some revenue contribution (at margins above 80%), this initiative also pulls more students under the Educomp umbrella. The preschool initiative could receive a boost from an acquisition - we understand that Educomp is looking to acquire a 60-80 school chain in the preschool segment. Licensing of Smart Class content in international markets should stay at 6-8% of total revenue. Revenue mix - Percentage of Educomp’s total (%) FY08CL FY09CL FY10CL FY11CL Smart Class India 42 36 32 29 ICT 33 35 30 28 K-12 1 12 23 26 Smart Class Global 8 7 6 9 Preschools 1 1 2 3 E-learning 2 2 3 2 Teacher training 9 5 3 2 Others 5 2 1 1 Source: CLSA Asia-Pacific Markets Educomp is aggressively pursuing the tutoring market. It acquired a 76% stake in 3-Bricks e-services, which owns an online tutoring portal called www.learninghour.com and www.threebrix.com. Over 250 tutors provide online tutoring at an hourly cost of Rs400, with the Middle East and Dubai the primary markets as of now. Over time, this initiative could expand beyond the online channel to include brick-and-mortar tutoring as well. Educomp has also acquired a 51% stake in AuthorGen Technologies, which owns technology platforms on the Web 2.0 domain for online learning. AuthorGen owns a portal, www.wiziq.com, which connects students and teachers on any web browser and operating system. It also has a 70% stake in Canadian e-learning company, Savvica, which builds online communities around e-learning. BUY for visible multi-year growth Looking back at our map of the Indian education opportunity, we note that Educomp has a presence in both the larger as well as some of the fastestgrowing segments. Over the years, Educomp will retain the option of expanding into the higher-education space. Still, its current portfolio alone should be enough for more than 100% revenue growth until FY11 and we suspect more than 50% growth for some years after that as well. For example, our model bills only 72 K-12 schools (and these only partially) in FY2011, versus the new targets of 150 schools in four years. More importantly, we find less cyclicality in Educomp’s revenue streams. The typical duration of a Smart Class win is five years. School leases and management contracts run for over 30 years. IT projects in public schools, though a business less to our liking, also run over five years. From the consumer’s perspective, Educomp is strong in segments where spending is more compulsory than it is discretionary. Over time, operating leverage benefits will kick in. Educomp’s 400-strong development team does not need to grow at the same pace as revenue. The company has been investing heavily in sales expansion lately, but with 75 Adjacent businesses contribute 15-18% of revenue and growth Building stakes in tutoring Placed well – where the카테고리 없음