New Oriental Education & Tech Group (EDU), a private educational services provider in China, stock is up over 14% in the last 30-day period between May 9 and June 8. The stock is trading at $105 as of Friday, June 8, rising 0.64% on the day.

New Oriental’s stock has been steadily rising since June 9, 2017, up over 40% in the trailing 12-month period.

The company’s stock is rising as a result of strong growth and a focus on Middle Kingdom education expansion by the company.

The company released its Q3 2018 fiscal earnings in April, showing year-over-year growth of 41% in revenue. Revenue figures rose from $438 million to $618 million on the quarter. Non-GAAP EPS rose from $0.48 to $0.57 year-over-year, or at a rate of 19%.

Free cash flow is down primarily due to the company rapidly expanding its operations. New Oriental has been increasing its operations in the Middle Kingdom, with the company increasing its total square footage occupied by 41%. The company also increased its total learning centers and schools by 25%, reaching the 1,000-mark.

New Oriental has yet to benefit from the expansion due to the company having to pay upfront costs for construction, advertising and for hiring staff. The company notes that many of the facilities are yet to be filled, with the company’s advertising methods taking months before students fill the classrooms.

Total enrollment in fiscal Q3 2018 rose 7.7% on the quarter, with an impressive rise in enrollment of 30% over the last two quarters. Student registrations are on the rise in the first eight weeks of fiscal Q4 2018, with the company reporting registration increases of 65%.

K-12 after-school-tutoring is on the rise, with revenue in the segment increasing by 51%. Online-to-offline programs experienced a 63% rise in revenue while the POP kids program experienced 50% growth in revenue.

Investor sentiment is on the rise after two quarters of solid growth. The company is focusing on attracting new students with lower prices that smaller schools can’t afford to offer. The company plans to enhance their online learning tools in the future to boost higher-margin enrollments.

The company expects marketing efforts at their new facilities to increase enrollment at the end of the fourth fiscal quarter of the year.

New Oriental is further benefiting from higher disposable income in China, which is leading to a higher number of students enrolling in their learning programs. Market consolidation is also leading to less competition, allowing New Oriental to leverage their brand to increase enrollments.

Investor fears over tighter regulations in afterschool tutoring is also starting to ease. Experts suggest that the regulations will help New Oriental and TAL Education Group (TAL), the main competitor to New Oriental, by forcing out unlicensed providers. Regulations that push out these providers will benefit the company the most. New Oriental’s tight operating margins have allowed the company to remain competitive against TAL.

The loss of unlicensed providers may spur up to 30% growth in revenue for New Oriental.