China Stock Profile – Chinacast Education Corporation (CAST)1

Statistics for CAST:

P/E 29.3
Long Term EPS Growth 30%
PEG Ratio 0.98
Net Margin 21%
Average Rating Value 1
Average Rating Buy
Average Target Price 7.25
Current Price 7.06
Year to Date Performance 178%
Institutional Ownership 54%
Short Interest as % of Float 0.89%

Explanation of Terms

P/E - Price divided by Earnings

Long Term EPS Growth - Long-Term (next 3-5 years) EPS Growth Rate estimated by Wall Street analysts
PEG Ratio – P/E to Growth Ratio. Generally the lower the ratio the more attractive the stock
Net Margin – Net Profit divided by Revenue
Average Rating Value – Based on Ratings given by Wall Street analysts. Generally, the lower the value, the
higher the rating
Average Rating – Based on Ratings given by Wall Street analysts
Average Target Price – Based on Target Price given by Wall Street analysts
Current Price – Current Market Price of stock
Year to Date Performance – Year to Date Performance in Price of stock
Institutional Ownership - % of Shares held by Large Institutions
Short Interest as % of Float – Short Interest in the stock as a % of Equity Float

Chart of CAST

CAST Company Profile

CAST operates as an e-learning and training services provider in China, including interactive distance
learning applications, multimedia education content delivery, vocational/career training courses, and English
language training. The company provides these services through its nationwide satellite broadband network,
1
By H.U.
and through schools to post-secondary educational institutions, K-12 schools, government agencies, and
corporate enterprises. CAST also provides bachelor and diploma programs in finance, economics, trade,
tourism, advertising, information technology, music, and foreign languages. The company was founded in
1999 and is headquartered in Beijing, of China.

Key Executives of CAST

Mr. Tze Ngon Chan , 53

Co-Founder, Chairman, Chief Exec. Officer and Member of Post-IPO Employee Share Option
Scheme Committee
Mr. Jianping Yin , 48
Co-Founder and Vice Chairman
Mr. Antonio Sena , 53
Chief Financial Officer and Company Sec.
Mr. Wei Li , 46
Chief Operating Officer
Mr. Lok Ma , 37
Chief Accounting Officer and VP of Fin.

Major Direct Holders of CAST

Holder Shares Reported

FIR TREE, L.L.C. N/A 27-Jun-08
YIN JIANPING N/A 6-Nov-07
NGON RON CHAN TZE 2,073,445 31-Dec-08
TANG JUSTIN 390,000 14-Apr-08
XUE RICHARD 110,000 14-Apr-08

Analysts’ Estimates

Current Qtr Next Qtr Current Year Next Year

Earnings Estimate
Jun-09 Sep-09 Dec-09 Dec-10
Avg. Estimate 0.09 0.10 0.36 0.47
No. of Analysts 4 4 4 4
Low Estimate 0.08 0.09 0.34 0.40
High Estimate 0.10 0.10 0.39 0.58
Year Ago EPS 0.14 0.09 0.20 0.36

Analysts estimate earnings growth of 30.6% for CAST next year.

Recent News Headlines for CAST

[July 15th] CAST is rated five stars by Motley Fool.

[July 24th] China Cast Education Corporation to Report Second Quarter Financial Results on August 10,
2009.

CAST Financial Statements

Income Statement PERIOD ENDING 31-Dec-08 31-Dec-07 31-Dec-06
Total Revenue 41,962 25,716 24,319
Cost of Revenue 21,709 11,712 13,212

Gross Profit 20,253 14,004 11,107

Operating Expenses
Research Development - - -
Selling General and Administrative 11,433 5,993 4,938
Non Recurring (954) - -
Others - - -

Total Operating Expenses - - -

Operating Income or Loss 9,773 8,011 6,169

Income from Continuing Operations

Total Other Income/Expenses Net 1,608 3,595 (903)
Earnings Before Interest And Taxes 11,381 11,606 5,266
Interest Expense 378 5 2
Income Before Tax 11,003 11,601 5,264
Income Tax Expense 3,577 2,913 1,577
Minority Interest (1,103) (445) (1,044)

Net Income From Continuing Ops 6,259 8,085 2,526

Non-recurring Events
Discontinued Operations - (50) -
Extraordinary Items - - -
Effect Of Accounting Changes - - -
Other Items - - -

Net Income 6,259 8,035 2,526

Preferred Stock And Other Adjustments - - -

Net Income Applicable To Common Shares $6,259 $8,035 $2,526

Balance Sheet PERIOD ENDING 31-Dec-08 31-Dec-07 31-Dec-06

Assets
Current Assets
Cash And Cash Equivalents 86,663 100,737 92,435
Short Term Investments - - -
Net Receivables 5,966 5,283 5,676
Inventory 208 276 393
Other Current Assets 260 976 667

Total Current Assets 93,097 107,272 99,171

Long Term Investments 16,935 17,955 17,305
Property Plant and Equipment 41,660 1,522 1,837
Goodwill 45,672 235 454
Intangible Assets 22,462 2,984 1,798
Accumulated Amortization - - -
Other Assets 101 267 -
Deferred Long Term Asset Charges - - 22

Total Assets 219,927 130,235 120,587

Liabilities
Current Liabilities
Accounts Payable 24,483 13,375 20,493
Short/Current Long Term Debt 3,630 5 19
Other Current Liabilities 16,287 - -

Total Current Liabilities 44,399 13,380 20,512

Long Term Debt 8,761 - 5
Other Liabilities 6,545 3,821 -
Deferred Long Term Liability Charges 3,085 - -
Minority Interest 6,540 2,810 18,654
Negative Goodwill - - -

Total Liabilities 69,330 20,011 39,171

Stockholders' Equity
Misc Stocks Options Warrants - - -
Redeemable Preferred Stock - - -
Preferred Stock - - -
Common Stock 4 3 2
Retained Earnings 8,146 3,409 (3,196)
Treasury Stock - - -
Capital Surplus 139,123 105,321 83,718
Other Stockholder Equity 3,323 1,491 892

Total Stockholder Equity 150,596 110,224 81,416

Net Tangible Assets $82,462 $107,005 $79,164

Cash Flow Statement PERIOD ENDING 31-Dec-08 31-Dec-07 31-Dec-06

Net Income 6,259 8,035 2,526

Operating Activities, Cash Flows Provided By or Used In

Depreciation 5,098 720 1,733
Adjustments To Net Income 6,900 (633) 2,877
Changes In Accounts Receivables 394 336 (307)
Changes In Liabilities 12,530 2,301 4,055
Changes In Inventories 49 54 45
Changes In Other Operating Activities 26 (724) 1,243

Total Cash Flow From Operating Activities 31,257 10,089 12,172

Investing Activities, Cash Flows Provided By or Used In

Capital Expenditures (8,267) (368) (167)
Investments 982 1,363 3,027
Other Cashflows from Investing Activities (34,841) (23,766) (21,195)

Total Cash Flows From Investing Activities (42,125) (22,771) (18,335)

Financing Activities, Cash Flows Provided By or Used In

Dividends Paid - - -
Sale Purchase of Stock 23,875 (794) 26,404
Net Borrowings (998) (602) (21)
Other Cash Flows from Financing Activities - (4,788) -

Total Cash Flows From Financing Activities 22,877 (6,184) 26,383

Effect Of Exchange Rate Changes (49) (237) (2)

Change In Cash and Cash Equivalents $11,959 ($19,103) $20,218

Reference

Yahoo Finance
China Analyst