Investment Rating - The report assigns a "Buy" rating for Tianli International Holdings (1773) for the first time [2]. Core Insights - Tianli International Holdings is a leading K12 private education service provider in China, focusing on the profitable high school business. The company has expanded to 50 schools across 16 provinces since its establishment in 2002, achieving significant revenue growth [2][9]. - The private high school education sector in China has substantial growth potential, driven by favorable policies and demographic trends. The market size for private high schools is projected to exceed 200 billion by 2031, with a CAGR of approximately 7.8% [2][25]. - The company's strong academic performance and brand reputation provide a solid foundation for growth, with significant room for increasing student enrollment in high schools [2][40]. Company Overview - Tianli International Holdings was founded in 2002, initially focusing on K9 education in Sichuan province. The company has received multiple accolades for its educational innovation and quality [9]. - The company transitioned to focus on profitable high school education after the implementation of the new Private Education Promotion Law in 2021, successfully increasing its student enrollment [11][17]. Financial Analysis - In FY23, the company reported revenue of 2.32 billion, a year-on-year increase of 161%, and a net profit of 334 million, up 246% from the previous year. This performance marks a recovery to 92% of the 2020 profit levels [2][17]. - The company expects continued growth in net profit, projecting figures of 550 million, 810 million, and 1.11 billion for FY24 to FY26, with corresponding PE ratios of 17X, 12X, and 8X [2][3]. Market Potential - The private high school market in China is expected to grow significantly, with the number of students projected to reach 3,127 million by 2029. The penetration rate of private high schools is anticipated to increase from 20% in 2023 to 30% by 2033 [39][32]. - The report highlights that the demand for quality high school education resources will continue to drive the growth of private high schools, despite local fiscal constraints [35][39]. Growth Drivers - The company has a robust growth strategy, including the expansion of its school network and the introduction of various educational services to meet diverse student needs. It plans to add 3-5 new high schools annually [2][40]. - The company has successfully increased its high school enrollment, with a significant rise in the number of students achieving high academic standards, further enhancing its brand reputation [40].
天立国际控股深度报告：公司深度报告●教育以办学实力为基，营利性高中成长动力充足