Meten EdtechX Education Group Ltd. (METX) stock climbed in the pre-market today on August 31, 2021, without any specific reason. METX’s stock price saw a push of 3.81% to reach $0.68 a share at the time of this writing. The stock also rallied in the previous trade and went up by 14.75% at closing. Let’s dig in to explore more about this stock.
What’s Happening?
Meten EdtechX Education Group Ltd is the leading English training service provider in the People’s Republic of China. METX is operating through four segments. Online English Training, Junior English Training, Overseas Training Services, and General Adult English Training. There is no specific reason associated with the rising price of METX stock. No analyst’s upgrades have been in the recent news to support the bullish sentiment. Let’s have a look at recent events of this stock.
METX stock performance in Q2,2021:
Revenues:
Meten EdtechX reported RMB204.8 million (US$31.7 million) revenue in the second quarter of 2021. This represents an 8.2% increase as compared to RMB189.3 million in the second quarter of 2020. Revenue for the general adult ELT reached RMB79.3 million (US$12.3 million), 38.3% higher year-over-year. Revenue for Junior ELT and online ELT were RMB23.1 million (US$3.6 million) and RMB60.9 million (US$9.4 million) respectively. First-half revenue increased by 10.9% year-on-year to reach RMB411.3 million (US$63.7 million) for the METX stock.
Cost of Revenues:
METX stock reported RMB138.6 million (US$21.5 million) cost of revenue for the Q2,2021, 2.1% higher than prior year same period. The cost of revenue for the first half was RMB274.4 million, (US$42.5 million), 2.3% lower than the same period of the previous year.
Gross Profit:
Gross profit for the METX stock improved by 23.4% to RMB66.2 million in the second quarter of 2021. The gross profit of RMB137.0 million for the first half showed 52.0% improvement from the same tenure of the previous year.
Loss from Operations and Net loss:
For the second quarter, METX stock suffered RMB77.5 million loss from operations less than prior year same quarter. Net loss decreased from RMB93.4 million in Q2,2020 to RMB80.3 million in Q2,2021.
Balance Sheet of METX stock:
By the end of the second quarter of 2021, METX stock had RMB144.2 million in cash and cash equivalents. By the end of December 2020, cash and cash equivalents were RMB90.1 million
METX stock to Launch Adult Overseas Higher Education Service:
On August 05, 2021, Meten EdtechX did announce the launching of adult overseas higher education services in the fall of 2021. Initially, enrollment will start in the few cities of China and will expand throughout the country in spring 2022. This is a good initiative by the METX stock as Chinese new educational reforms encourage online educational activities.
Wrap Up:
Meten stock is hot among investors despite the absence of any specific news. The stock is anticipating completing its strategic transformation along with the upgradation of both offline and online training organizations in the third quarter.
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