Integrated Science and Social Studies Era... MegaStudyEdu to Benefit from College Admissions Reform [Click eStock]

LS Securities maintained its target price of 60,000 won and its "Buy" rating on MegaStudyEdu on November 12, saying the company would benefit structurally from rising demand for online lectures as a result of the 2028 college admissions reform.

In a report released that day, LS Securities analyst Jung Hongsik said, "Starting next year, when current high school sophomores take the College Scholastic Ability Test (CSAT), both integrated science and integrated social studies will be included in the exam scope for the inquiry section." He added, "As the scope of the inquiry section expands compared with the two subjects students previously chose, students are more likely to prepare for these subjects through online lectures rather than at offline academies."

Jung said, "Because the current holistic admissions track based on high school student records requires a great deal of time to prepare for while students are enrolled in high school, more students are beginning to study for the CSAT ahead of time during middle school." He explained, "This admissions trend can also be seen as a factor driving demand for online lectures for high school students."

MegaStudyEdu's third-quarter consolidated results exceeded market and company estimates. Revenue rose 4.2% year over year to 260.1 billion won, while operating profit increased 0.9% to 53.7 billion won.

By segment, the elementary and middle school division has limited the decline in student numbers despite a shrinking school-age population, drawing on its industry-leading competitiveness. Demand among middle school students for advanced high school coursework has also remained solid.

In the high school division, revenue growth continued, but profit growth was limited by higher initial fixed costs related to Max, a newly launched academy specializing in school exams for top-performing students. Meanwhile, subsidiary Ivy Kim Young saw its growth slow somewhat, as transfer-exam candidates increasingly preferred online lectures over offline classes.

This content was produced with the assistance of AI translation services.