The Idp Education Ltd
(ASX: IDP) share price is rising after giving an investor presentation update.
What happened?
Macquarie Group Ltd (ASX: MQG) is currently holding an investor conference where companies can tell investors how things are going.
That’s exactly what education and testing business IDP Education did.
It told investors that its decisive actions helped steer the business through the pandemic. IDP Education said that it has a resilient business model. It has a strong global team which is expanding to help future growth. The business also said that it’s in a strong financial position (with a cash balance of $299 million) and undrawn working capital, whilst ensuring disciplined cost management.
Recovery expectations
IDP Education said that demand remains. It’s growing its international English language testing business (IELTS) capacity through new computer-delivered centres – 88 have been opened in FY21, with another 28 scheduled to open by 30 June 2021. It’s also increasing its capability with higher counseller capacity to support students into FY22 and FY23.
Management believes that its data insights are increasingly valuable as higher education institutions create their rebound strategies.
83 of its 127 placement offices are open, with most Indian offices returning to virtual operations. The current focus is on student engagement for the Northern Hemisphere autumn intake.
In terms of IELTS, demand remains strong, though restrictions are making it tricky, particularly in India. The company is responding to these restrictions by managing demand into future periods.
Things are looking positive in other countries. There are open borders for most international students in the UK and Canada. Over the long term, the UK is targeting 600,000 international students by 2030. Canada is targeting 400,000 new migrants per annum to 2023.
IDP research shows that students are holding on to their student intentions. Demand for online-only study remains low. Students are willing to quarantine and get a vaccine in exchange for an on-campus experience.
Summary thoughts on the IDP Education share price
IDP Education summarised by saying that structural demand drivers remain in place. The IELTS performance is a positive leading indicator for the health of the industry.
This ASX share is probably one of the higher quality businesses, and international learning is likely to keep recovering as vaccinations continue.
It’s one of the ASX growth shares that could be worth keeping an eye on. But I’m not sure how quickly the full recovery will be take.
