Group 1 - The core point of the news is the completion of the computer-based enrollment for private primary schools in Hangzhou, with a total of approximately 12.9 million new first-grade students registered for 2025, of which about 1.08 million applied for private schools [1] - There are 48 private primary schools in Hangzhou planning to enroll about 0.65 million students, resulting in an enrollment ratio of approximately 1.66:1, which is consistent with the previous year [1] - The enrollment process is designed to be transparent and fair, with strict adherence to regulations, including the involvement of notarization and supervision by various stakeholders [1] Group 2 - For students who were not admitted to private primary schools, there is an opportunity to participate in a supplementary online enrollment for unfilled spots on July 4 [1] - The education authorities will conduct a second batch of on-site information verification for public primary schools on July 5 for children who were not admitted to private schools [2] - The supplementary enrollment will be limited to the respective districts where the private schools are located, ensuring localized opportunities for students [2]

Group 1 - The establishment of the Hainan Free Trade Port (FTP) multi-functional free trade account is a significant practice to enhance trade and investment facilitation, with over 120 billion RMB in business volume achieved by May 8, 2023 [1] - The Hainan FTP is actively attracting overseas Chinese business representatives from 37 countries and regions to explore new cooperation opportunities, indicating a growing interest in investment in the region [1][2] - The education sector is emerging as a new investment hotspot for overseas Chinese entrepreneurs, with initiatives to introduce international education resources and cultivate talent for local industries [2] Group 2 - The tariff incentives in Hainan are expected to significantly boost bilateral trade, particularly for agricultural products from Myanmar, highlighting the region's strategic advantages [2] - The Hainan provincial government is encouraging overseas Chinese to leverage their experience and resources to contribute to the development of the FTP, particularly in tourism, modern services, and high-tech industries [2] - The multi-functional free trade account allows for seamless fund transfers between various account types, enhancing the convenience of cross-border trade [1]

Group 1 - The 2024 National Education Development Statistical Bulletin reveals a total of 470,000 schools in China, including 253,300 kindergartens and 152,800 private schools, continuing a decline of over 10,000 schools since 2023 [1] - In the early childhood education sector, the impact of declining birth rates is evident, with 25,330 kindergartens and 35.84 million children enrolled, reflecting a gross enrollment rate of 92.00% [1] - The number of kindergartens decreased by over 20,000 compared to 2023, with a significant drop in the number of inclusive kindergartens from 236,400 to 221,000, a reduction of more than 15,000 [1] Group 2 - The private education sector is facing challenges due to a continuous decline in birth rates, with the number of private schools decreasing from 167,200 to 152,800, a drop of nearly 15,000 [2] - In 2024, there are 46.22 million students enrolled in private schools, accounting for 16.13% of total enrollment, down from 49.40 million in 2023 [2] - The number of private colleges stands at 803, representing 25.75% of all colleges, with a decrease of over 3 million students compared to the previous year [2] Group 3 - The decline in birth rates and total population is directly impacting the private education sector, leading to a shift from rapid expansion to a focus on sustainable growth and differentiation [3] - The number of special education schools increased to 2,396, with 158,200 students enrolled, indicating a growing coverage and support for special education [3] - The number of special education students rose from 155,000 to 158,200, reflecting an upward trend in special education enrollment [3]

Investment Rating - The report assigns a "Buy" rating to Tianli International Holdings (01773) with a target price based on the last closing price of HKD 4.42 [1]. Core Viewpoints - Tianli International Holdings is a leading K12 private education group in China, with a focus on high school education and diversified pathways for student advancement, supported by a stable shareholding structure and experienced management team [3][19][20]. - The company has successfully expanded its operations across 18 provinces, serving over 130,000 students, with a significant emphasis on high school education [3][18]. - The private education sector is experiencing a shift due to policy changes, with a growing demand for private high schools, which are expected to reach a market size of RMB 150 billion to 218.5 billion by 2025 [4][47]. Summary by Sections Company Overview - Tianli International Holdings has developed a comprehensive K12 education system since its establishment in 2002, evolving from a focus on K9 education to becoming a leader in the western region of China [3][13][14]. - The company has a stable shareholding structure, with the controlling shareholder holding 42.46% of the shares, ensuring effective governance and strategic execution [19][20]. Industry Status and Trends - The private education industry is undergoing regulatory changes that have led to a contraction in K9 businesses while allowing for the expansion of private high schools, which have increased from 2,585 in 2015 to 4,567 in 2023 [4][46]. - The demand for high school education continues to grow, with a current enrollment rate of 60% and a significant gap in available seats, indicating strong future growth potential [42][47]. Business Development Strategy - The company has adopted a "One Core, Multiple Supports" strategy, focusing on strengthening its high school operations while diversifying into various educational services, including online platforms and international education [4][52][56]. - The light-asset model has been implemented to reduce investment risks and costs, allowing for rapid expansion through leasing and management contracts [58][61]. Financial Analysis - The financial performance shows significant growth, with a projected revenue increase from RMB 3.32 billion in FY2024 to RMB 5.41 billion by FY2027, alongside a net profit growth from RMB 576 million to RMB 1.15 billion in the same period [5][7]. - The company is expected to maintain a stable gross margin of around 33.7% and improve its net profit margin to 16.7% [5][7].