Company Overview - Tianli International Holdings (01773 HK) is a leading private K-12 education group in China, focusing on high school education after the 2021 regulatory changes [1] - The company operates 33 self-owned high schools serving 37,000 high school students, with total K-12 student enrollment exceeding 100,000 [1] - FY2023 revenue reached RMB 2 3 billion (+160% YoY), with net profit of RMB 330 million (+246% YoY), demonstrating successful business transformation [1] Business Model - Core business focuses on high school education, supplemented by K-12 ancillary services (cafeteria, product sales, quality education courses, study tours) and school management services [1] - High school segment contributes 26% of total revenue, with K-12 ancillary services accounting for 24% and 21% respectively [2] - The company plans to add 3-5 new high schools annually, targeting 40-50 schools by 2027 with total high school enrollment reaching 60,000-80,000 students [2] Market Opportunity - Private high school market benefits from favorable policies and strong demand for diversified education paths [1] - The private high school penetration rate is expected to increase steadily, supported by demographic trends and delayed release of population dividend [1] - Market size for private high schools is projected to reach RMB 361 1 billion by 2032, with a CAGR of 9 17% from 2023 [39] Competitive Advantages - The company has established a strong brand and reputation through its "Six Establishments and One Achievement" curriculum system [51] - With 33 high schools across 16 provinces, the company has achieved nationwide coverage and scale [47] - The layered enrollment model and scholarship system help attract and retain top students [49] Financial Performance - FY2023 revenue reached RMB 2 303 billion (+160 4% YoY), with net profit of RMB 334 million (+245 8% YoY) [3] - High school utilization rate is currently 27%-37%, with potential to reach 100% by 2028 [2] - The company targets net profit of RMB 523/728/1,011 million for 2024-2026, representing a 39% CAGR [2] Growth Strategy - Focus on increasing high school utilization rates and expanding school network [2] - Develop K-12 ancillary services and explore school management services as new growth drivers [2] - Implement tuition fee increases of 5% annually, leveraging the growing proportion of students pursuing diversified education paths [2]
天立国际控股：民办K12学历教育转型先锋，聚焦高中业务再谋新发展