Thread by @MrMikeInvesting

$METX - Meten EdtechX DD Thread 🔥
Produced by - @MrMikeInvesting

Company Overview
•Meten Holding offers online ELT and other English language-related service to students
•They were founded in 2006 and their HQ is in Shenzhen,China
•Meten Holdings has a market cap of $72M and has 130M shares Outstanding and 107M are public float
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•Meten had a Merger with EdtechX on 12/12/19
•Pro forma equity value $649 million, $614 million firm value
•They entered a Purchase Agreement with Azimut to purchase up to $20M
•Target to raise up to $100M in total including up to $20M in PIPE
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Meten Key Facts
-No.1 omnichannel general adult ELT player in China1
-They have 1.1M registered users
-16k Online Teachers
-113% CAGR
-45K Students Enrolled
Overseas training services
-36 cities Reached
-13 years of operation
-149 Learnings Centers
-73K Students Enrolled
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Profitable Market Leader in Adult ELT
-Profitable ✔️
-Omnichannel Retail + Digital✔️
-General Adult ELT Offline Revenue: 126M
-Digital Reach ✔️
From 2016-2018
46% increase in student enrollment
21% increase in Gross Billings
25% increase in Learning Centers
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Institutional Ownership
Meten EdTechX has a total of 27 institutional owners
• 26 LT,1 ST
Institutions own 2.82% of the total shares
• Many major institutions are invested
• Some include:
• Citigroup
•JPMorgan
• Investco
• Walleye
fintel.io/so/us/metx
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Established Track Record in ELT
2006: 1’st center established
2013: Provide overseas training services
2014:Launch of Likeshuo,online ELT platform
2018: Expanded into the junior ELT
2019: Enter agreement with EdtechX
2020: Expected consummation of combination with EdtechX
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Record and Strong Brand Recognition
No 1: Offline General Adult ELT Market in China1
No 2: Offline General ELT Market in China1
No 1: Online General Adult ELT Market in China1
No 1: Highest Revenue Growth Rate
in China’s Offline General ELT Market2 (2016-2018)
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Attractive Market with High Growth Potential
•1.4B population in China with 1.1bn adults
• Increasing disposable income and expenditure on education and training
• Growing number of students
• Advancements in Internet
•This will lead for the market cap to 3x by 2023
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Highly Efficient Omnichannel Business Model
• 100k opportunities for free “The Brain” courses
• Free LikeABC course
• Free trial one-on-one course for students
•278%+ YOY Online GROSS billing
•Simple and well- structured interface
•Variety of classes to attract users
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Outstanding Network Expansion Capabilities
•Learning centers under “Meten” brand: 123
•Learning centers under “ABC” brand: 26
•Experiential marketing stores for online English training: 5
•The amount of locations have grew 100% from 2015-2019
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Huge Untapped Potential in Non Tier 1 Cities in China
-4M+ People
-$11B USD potential
-4K+ per capita GDP
-10,000 KM/City Area
-This men’s that there’s still lots of revenue to capture in China and then worldwide expansion
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EdTechX has a very experienced management team
•The CIO has 25 years of experience in sectors such as Edtech Media, and Financial services
•The CEO has Over 20 years of operational, investment and advisory experience in the Education,Technology and Media industries
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I would like to now conclude this DD Thread on Meten EdtechX
Price Targets 🎯
Short Term ($1-$7)
Long Term ($10-$25)
@stocks2the
@PJ_Matlock
@MrZackMorris
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