Investment Rating - The report maintains a "Recommend" rating for the company, citing its strong educational capabilities and potential for growth in its for-profit high school business [4][7] Core Views - The company's FY24 revenue reached 3.32 billion yuan, a 44% year-over-year increase, with net profit attributable to shareholders of 560 million yuan, up 66% year-over-year [2] - The company's student enrollment grew by 30% year-over-year to 130,000 students, with high school students accounting for 41.5% of the total, up 46% year-over-year [2] - The company's educational business revenue increased by 43% year-over-year to 1.74 billion yuan, driven by tuition fees and growth in study tours and quality education services [2] - The company's product sales revenue surged by 66% year-over-year to 920 million yuan, benefiting from optimized supply chain layout [2] - The company's for-profit high school business shows strong growth potential, with a 55% first-tier university admission rate in mature schools, significantly higher than the Sichuan provincial average [2] - The company's light-asset transformation is progressing smoothly, with ROE increasing by 8.5 percentage points to 24.3% in FY24 [3] Financial Projections - The company's revenue is projected to grow to 4.00 billion yuan in FY25, 4.74 billion yuan in FY26, and 5.46 billion yuan in FY27, with growth rates of 21%, 19%, and 15% respectively [5] - Net profit attributable to shareholders is expected to reach 735 million yuan in FY25, 949 million yuan in FY26, and 1.14 billion yuan in FY27, with growth rates of 28%, 29%, and 21% respectively [5] - The company's diluted EPS is forecasted to be 0.35 yuan in FY25, 0.45 yuan in FY26, and 0.54 yuan in FY27 [5] - The company's PE ratio is expected to decrease from 15.74 in FY24 to 12.20 in FY25, 9.45 in FY26, and 7.84 in FY27 [5] Market Data - The company's stock price on November 26, 2024, was 4.09 HKD, with a total market capitalization of 8.7 billion HKD [7] - The company's total shares outstanding are 2.116 billion, with all shares being tradable [7]

Investment Rating - The report maintains an "Outperform" rating for Tianli International Holdings (01773 HK) [3][4] Core Views - Tianli International Holdings achieved a 56% YoY growth in adjusted net profit in FY2024, exceeding expectations [3] - The company's revenue increased by 44 2% YoY to RMB 3 321 billion, with net profit rising 66 3% to RMB 556 million [3] - Adjusted net profit reached RMB 577 million, a 56 4% increase, surpassing the previously disclosed guidance of 56% growth [3][8] - The company's ROE hit a new high of 24 3%, driven by a combination of heavy and light asset strategies [3] Business Segment Analysis - Integrated education business revenue grew 43% YoY, accounting for 53% of total revenue [3][11] - Product sales revenue increased 66% YoY, contributing 28% of total revenue [3][11] - Comprehensive logistics revenue rose 23% YoY, making up 18% of total revenue [3][11] - Hosting business revenue grew 53% YoY, representing 2% of total revenue [3][11] Financial Performance - Gross margin slightly decreased by 0 1pct to 33 7% due to higher contribution from lower-margin product sales [3][17] - Operating expense ratio decreased by 2 2pct to 12 5%, reflecting strong cost control [3][17] - Adjusted net profit margin improved by 1 4pct to 17 4% [3][17] - Capital expenditure decreased by 32 2% YoY to RMB 407 million [3][18] Future Outlook - The company is expected to achieve revenue of RMB 4 55/6 17/8 29 billion in 2025-2027, with net profit of RMB 780 million/1 06 billion/1 48 billion [3][25] - The PE ratio is projected at 10 5x/7 7x/5 5x for 2025-2027 [3][25] - The company plans to maintain a 30% dividend payout ratio [3][18] Strategic Initiatives - The company is focusing on a combination of heavy and light asset strategies, primarily using leasing for school expansion [3][18] - Multiple business lines, including diversified education and cloud platform services, are being actively developed and expanded to external schools [3][22][24] - The company has invested approximately HKD 140 million in share buybacks since July 2023 [3][18]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's core business, including education services and managed operations, grew by 43% and 53% respectively, with significant growth in study tours [2] - FY2024 group revenue, annual profit, and adjusted net profit attributable to the parent company were 3.321 billion, 556 million, and 577 million yuan, representing year-on-year growth of 44.2%, 66.3%, and 56.4% respectively [1] - The company's ROE reached a historical high of 24%, driven by reduced capital expenditures and a shift towards leasing for expansion [2] Business Performance - Comprehensive education services, restaurant operations, product sales, and management and franchise fee revenues were 1.745 billion, 919 million, 597 million, and 60 million yuan, with year-on-year growth of 42.7%, 65.5%, 23.2%, and 52.9% respectively [2] - In 2024, 90% of the company's high school students exceeded the Chinese university undergraduate admission score, a 6.5 percentage point increase year-on-year, and 55% exceeded the first-tier university admission score, a 4.7 percentage point increase [2] - The company added 3 new managed schools in FY2024, contributing to the growth in management and franchise fee income [2] Financial Metrics - FY2024 gross margin was 33.8%, a slight decrease of 0.1 percentage points year-on-year, while net margin and adjusted net margin were 16.7% and 17.4%, up 2.2 and 1.4 percentage points respectively [2] - Administrative expenses as a percentage of revenue decreased by 2.7 percentage points to 7.8%, primarily due to reduced employee costs and office administrative expenses [2] - Contract liabilities increased by 2.4% to 1.346 billion yuan, while capital expenditures decreased to 407 million yuan from 600 million yuan in the previous year [2] Future Outlook - The company's high school business is expected to maintain a 30% annual revenue growth, with the number of high school students projected to double by 2027 [3] - The managed school business is expected to grow from 10 schools to 100 segments by 2027, with potential for further integration of high-margin literacy programs [3] - Revenue and net profit forecasts for FY2025-2027 have been adjusted, with FY2027 revenue and net profit projected at 7.843 billion and 1.329 billion yuan respectively [3] Valuation and Share Repurchase - The company's latest closing price on November 25, 2024, was HK$4.24, with FY2025-2027 P/E ratios of 11x, 8x, and 6x respectively [3] - The company plans to repurchase HK$200 million worth of shares, with HK$140 million already repurchased [3]

Financial Performance - Revenue for the year ended August 31, 2024, was RMB 3,320,898 thousand, an increase of 44.2% from RMB 2,302,540 thousand in the previous year[2]. - Gross profit for the same period was RMB 1,118,969 thousand, reflecting a 43.7% increase compared to RMB 778,847 thousand[2]. - Net profit for the year increased by 66.3% to RMB 556,162 thousand from RMB 334,513 thousand[2]. - Adjusted net profit was RMB 577,414 thousand, up 56.4% from RMB 369,100 thousand[2]. - Basic earnings per share rose to RMB 27.51, a 71.4% increase from RMB 16.05[2]. - The total dividend per share increased to RMB 8.25, representing a 73.0% increase from RMB 4.77[2]. - Revenue increased by 44.2% from approximately RMB 2,302.5 million for the year ended August 31, 2023, to approximately RMB 3,320.9 million for the year ended August 31, 2024[32]. - Revenue from comprehensive education services rose by 42.7% to approximately RMB 1,744.9 million, driven by an increase in high school enrollment and a surge in study abroad services post-pandemic[32]. - Revenue from product sales increased by 65.5% to approximately RMB 918.9 million, attributed to enhanced supply chain channels in Shandong, Gansu, Guangxi, and Yunnan provinces[32]. - Revenue from comprehensive logistics services grew by 23.2% to approximately RMB 597.4 million, mainly due to an increase in the number of students served[33]. Operational Highlights - The number of full-time teachers employed by the company increased to 2,446, up from 2,090 in the previous year[13]. - The company provided comprehensive education services to 36,708 high school students during the reporting year[9]. - In the 2024 college entrance examination, 272 high school graduates received admission offers from the world's top 50 universities, an increase of 145 from the previous year[11]. - The company operates schools in 36 cities across various provinces, maintaining a strong presence in the education sector[13]. - The number of high school students in the company's network increased to 53,900 for the fall semester of 2024, up approximately 46.8% from 36,708 students in the fall semester of 2023[27]. - The company has successfully established seven high schools with independent operating licenses as of August 31, 2024, enhancing its operational structure[27]. - The company will continue to provide comprehensive operational services for students, including online campus shopping, logistics services, and international education consulting[27]. Financial Position - As of August 31, 2024, the total assets of the affected business amounted to RMB 3,766,061 thousand, a decrease from RMB 4,158,172 thousand as of August 31, 2023, representing a decline of approximately 9.4%[26]. - The net assets of the affected business were RMB 808,949 thousand as of August 31, 2024, down from RMB 866,837 thousand as of August 31, 2023, indicating a decrease of about 6.7%[26]. - The total current assets of the affected business were RMB 1,628,781 thousand as of August 31, 2024, compared to RMB 1,878,178 thousand as of August 31, 2023, reflecting a decrease of approximately 13.2%[26]. - The total liabilities of the affected business decreased to RMB 2,957,112 thousand as of August 31, 2024, from RMB 3,291,335 thousand as of August 31, 2023, a reduction of about 10.1%[26]. - As of August 31, 2024, the company's net current liabilities increased to approximately RMB 2,438.4 million from RMB 2,198.4 million as of August 31, 2023, primarily due to an increase in short-term bank loans[45]. - The company's cash and cash equivalents decreased to approximately RMB 1,358.4 million as of August 31, 2024, down from RMB 1,501.7 million as of August 31, 2023[47]. - The company's debt-to-equity ratio increased to approximately 20.1% as of August 31, 2024, up from 17.5% as of August 31, 2023[49]. - The total liabilities for other payables and accrued expenses amount to RMB 609,858 thousand for 2024, compared to RMB 512,010 thousand in 2023[159]. Tax and Financial Costs - Income tax expense increased by 68.4% to approximately RMB 184.3 million, reflecting higher taxable profits from subsidiaries[44]. - Financial costs increased from approximately RMB 62.5 million to approximately RMB 86.4 million, primarily due to increased interest on bank loans and lease liabilities[43]. - The total income tax expense for the year 2024 is RMB 184,289,000, compared to RMB 109,430,000 for 2023, reflecting a significant increase[121]. Investments and Future Plans - The company plans to actively explore investment opportunities to broaden its revenue base and enhance future financial performance[52]. - The company has allocated approximately RMB 200 million from the proceeds of a placement for potential acquisitions of high-quality targets[59]. - The company utilized approximately RMB 194.97 million for the expansion of self-operated projects in first-tier cities as of August 31, 2024[60]. - The company has made significant investments in new projects, with capital expenditures totaling RMB 351,606,000 during the year[133]. Employee and Shareholder Matters - The company employed 5,668 employees, an increase from 5,029 employees as of August 31, 2023[163]. - The employee costs for the reporting year amounted to approximately RMB 721.8 million, compared to RMB 566.4 million in 2023, reflecting a year-over-year increase of 27.3%[163]. - The company repurchased a total of 25,324,000 shares at a total cost of HKD 77,468,455, indicating a strategic move to enhance shareholder value[166]. - The proposed final dividend per ordinary share for 2024 is RMB 0.0408, an increase from RMB 0.0234 in 2023, totaling RMB 174,231,000 for the year[126]. Compliance and Governance - The audit committee has discussed risk management and internal controls, ensuring compliance with financial reporting standards[170]. - The company confirmed it maintained the required public float as per listing rules as of August 31, 2024[173]. - The board of directors plans to enhance gender diversity by seeking suitable candidates of different genders to join the board by December 31, 2024[169]. Miscellaneous - The company was incorporated in the Cayman Islands on January 24, 2017, and its shares are listed on the main board of the Hong Kong Stock Exchange[178]. - The report year refers to the period ending August 31, 2024[181]. - No significant events occurred after August 31, 2024, up to the date of this announcement[174].

Investment Rating - The report maintains a "Buy" rating for Tianli International Holdings (01773) with a 6-month target price [1] Core Views - FY24 revenue is expected to reach approximately RMB 3.3 billion, a 43% YoY increase, while adjusted net profit is projected at RMB 577 million, up 56% YoY [1] - Financial performance improvement is driven by steady growth in the number of customers for comprehensive education services and a significant increase in product sales revenue through online campus mall operations and supply chain integration [1] Business Expansion - Tianli has signed a new high school hosting project in Nanjing, covering an area of approximately 100 mu, with operations expected to commence on September 1, 2026 [1] - The company has entered into a service agreement with a middle school in Quanzhou, Fujian, to provide subject competition course training services [1] - KID STAR, a wholly-owned brand of Tianli, successfully won the bid for the first public-private partnership inclusive childcare project in Huangpu District, Guangzhou [1] Financial Forecasts - FY24-26 revenue forecasts are adjusted to RMB 3.3 billion, RMB 4.6 billion, and RMB 6.2 billion respectively [1] - Adjusted net profit for FY24-26 is projected at RMB 580 million, RMB 800 million, and RMB 1.1 billion respectively [1] - FY24-26 EPS is expected to be RMB 0.27, RMB 0.38, and RMB 0.5 per share, with corresponding P/E ratios of 14X, 11X, and 8X [1]

Investment Rating - The report maintains a "Buy" rating for Tianli International Holdings (01773) with a target price of HKD 4.72, indicating a positive outlook for the company's stock performance over the next six months [1]. Core Insights - Tianli International has issued 9.4 million stock options with an exercise price of HKD 4.72, which is higher than the current market price of HKD 4.55, signaling confidence in the company's future growth and market value [1]. - The company is in a rapid growth phase, focusing on talent retention and motivation as key drivers for its development in the education sector [1]. - Recent achievements in academic competitions highlight the effectiveness of Tianli's educational strategies, with multiple schools under its umbrella receiving top awards [1]. Summary by Sections Investment Rating - Current Price: HKD 4.71 - 6-Month Rating: Buy (maintained) - Target Price: HKD 4.72 [1] Company Performance - The issuance of stock options at a price above the current market price reflects the company's commitment to its future growth and shareholder confidence [1]. - The company has a total market capitalization of HKD 9,964.73 million and a total share capital of 2,115.65 million shares [1]. Competitive Achievements - Tianli's students have excelled in national academic competitions, with over 60 students winning provincial-level first prizes in recent years [1]. - The company has developed a comprehensive training and selection system for top talent, integrating various educational stages to enhance student performance [1].

Investment Rating - The report maintains a "Buy" rating for Tianli International Holdings (01773) with a target price of 6 HKD, while the current price is 4.86 HKD [1]. Core Views - The recent partnership between Tianli Education and Beijing No. 4 High School Hohhot Branch is expected to enhance the quality and sustainable development of education services, leveraging AI and big data technologies [1]. - The introduction of the AI Smart Learning Room service aims to address six key educational challenges, including personalized learning and resource optimization [1]. - The company has established a strong presence with nearly 60 schools across 18 provinces, serving over 100,000 students [1]. Financial Summary - The projected revenue for FY24-26 is expected to be 3.2 billion RMB, 4.6 billion RMB, and 6.2 billion RMB respectively [2]. - Adjusted net profit for FY24-26 is forecasted at 590 million RMB, 800 million RMB, and 1.1 billion RMB respectively [2]. - Earnings per share (EPS) for FY24-26 are estimated at 0.28 RMB, 0.38 RMB, and 0.52 RMB respectively, with corresponding price-to-earnings (PE) ratios of 15.9, 11.6, and 8.5 [2].

教育行业的我们的系列研究首先是为什么最近我们一直持续还是在强烈的去看好教育赛道首先给大家做一个简单的汇报从去年以来其实我们在A股相继去撰写 学大的深度的这个系列报告然后在港国就是持续撰写这个呃天地的这个相关的这个报告包括也做了很多交流哈就是说人家我们是非常看好目前第一个是消费行业 呃现在目前具有确定性增长而且现在有比较比较的我觉得优良的这样的这个性质在的是教育板块然后其实在目前来说的话如果说就赛道屏住来说的话我觉得在整个消费行业里面可能有很只有很少的或者说很难有出现类似于说像教育板块这样的这样的就说呃 消费力和消费意愿 教育行业来说的话我们觉得不管是属于消费意愿还是说居民实际上的消费力在这一块的一个留存的话我觉得都还是属于自由刚性的所以我们对于教育行业从去年以来的话持续就是开始进行一个精选客户的推荐那整体的效果应该说还是相对是不错的那教育行业我最我个人觉得就是说第一个它是属于民生的这么一个一个行业其实整体来看的话整个家庭不管说大家担心之前的 什么这个结婚的人口越来越少然后少子化的这么一个倾向但是其实从从这个2011年的这个单独二胎到2016年的全面二胎之后其实整个人口红利在如果说是在这个教育行业的话我觉得还是 ...

Investment Rating - The report assigns an "Outperform" rating to the company, indicating a positive outlook for its stock performance relative to the market [2][11]. Core Insights - The company has been included in the Hang Seng Composite Index, effective September 10, 2024, which is expected to enhance its visibility and trading volume [1]. - The company has shown robust operational performance, with a 30% year-on-year increase in student enrollment, reaching approximately 130,000 students [1]. - The company is expanding its management services for schools, having signed contracts for eight managed schools this year, which is anticipated to create a second growth avenue [1]. - Revenue and profit have experienced significant growth, with FY2024H1 revenue reaching 1.645 billion RMB, a 73.8% increase year-on-year, and adjusted net profit of 319 million RMB, up 70% [1]. - The company has initiated a share buyback program, repurchasing 3.847 million shares at HKD 3.35 per share, reflecting management's confidence in the company's long-term prospects [1]. Financial Projections and Valuation - Revenue projections for 2024-2026 are estimated at 3.315 billion RMB, 4.536 billion RMB, and 6.014 billion RMB, representing year-on-year growth rates of 43.97%, 36.8%, and 32.6% respectively [3][4]. - Adjusted net profit forecasts for the same period are 544 million RMB, 752 million RMB, and 1.029 billion RMB, with growth rates of 48.9%, 38.1%, and 36.8% respectively [3][4]. - The company’s price-to-earnings (PE) ratios for 2024-2026 are projected at 17X, 12X, and 9X, which are below the average PE ratios of comparable companies [1][3].

Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [2] Core Views - The company has shown strong growth in student enrollment for the 2024 autumn semester, with a total of approximately 130,000 students, a 30% increase from the previous year. The number of high school students served by the company has increased by 46% to about 54,000 [2][5] - The company has been included in the Hong Kong Stock Connect, which is expected to enhance its market visibility and investor interest [2] - The company is actively expanding its management services through partnerships, as evidenced by a recent agreement with local government entities for school management services [2] Summary by Relevant Sections Business Update - The company has successfully completed its enrollment for the 2024 autumn semester, with a significant increase in high school student numbers, indicating strong growth potential in its high school business [2][5] - The management services business is progressing faster than previously anticipated, with a plan to add 30-50 new segments annually, which is expected to contribute positively to revenue growth [12][20] Financial Projections - Revenue forecasts for 2024-2026 are set at 31.87 billion, 43.64 billion, and 59.18 billion yuan respectively, with a compound annual growth rate (CAGR) for net profit of 41.7% [20] - The company has also initiated a share buyback program, demonstrating confidence in its future growth prospects [20] Growth Drivers - The company is focusing on enhancing its brand and educational quality, which is crucial for achieving its long-term goals, including a target of 100 students admitted to top universities by 2027 [9][20] - The growth in external market revenues from various business segments, including e-commerce and educational services, is expected to provide significant revenue elasticity [16][20]