Chungdahm Learning, one of leading education services companies in South Korea, has drawn market attention for strong earnings outlook. The company’s operating profit is expected to reach some 20 billion won ($17.5 million) for fiscal 2017, up from the past two-year average driven by robust growth of CMS Edu, a subsidiary dedicated to math education programs for elementary and middle school students.
CMS Edu accounted for 87 percent of Chungdahm Learning’s consolidated operating profit in the first quarter of this year. CMS Edu’s math education focusing on creativity and thinking skills is enjoying unparalleled brand power in Kangnam and Mokdong, the two famous school academy districts in Seoul. Among 120 new students at Seoul Science High School, a top-notch public school for gifted students in STEM received training at CMS Edu.
Fast growth of Chungdahm Learning’s business in Vietnam and other Southeast Asian countries is another positive factor. Although the proportion of sales from overseas business is small, the pace of growth is promising as its English education institutes in Vietnam added 25 last year alone with more than 13,000 registered students so far. The company aims to double the number of its institutes this year with an estimated operating profit of up to 18 billion won, according to a market analyst.
The biggest merit of this company is attractive dividend payment. It is one of a few listed companies in education services that provide interim and end-year dividends based on sound financial health and stable profit growth.
The company’s full-year dividend payment was 800 won per share in 2016, with a dividend yield ratio of 4.4 percent, twice higher than the average of 1.8 percent of KOSPI companies. The generous payout ratio is expected to continue this year.
Shares of Chungdam Learning finished Wednesday 1.8 percent lower at 19,200 won.
By Lee Yong-gun
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]