Investment Rating - The report assigns a "Buy" rating to TAL Education (TAL US) with a target price of $13.30, indicating a potential upside of 21.6% from the current closing price of $10.94 [1][13]. Core Insights - The K12 education training business is showing robust performance, driven by strong demand for quality education services and sales of learning devices [2][6]. - The financial outlook is positive, with projected revenue growth of 46.2% in 2024, 51.0% in 2025, and a steady decline to 13.2% by 2028 [3][14]. - The company is expected to maintain a strong growth trajectory in its learning services, with an estimated growth rate exceeding 30% [6][7]. Financial Overview - Revenue projections for TAL Education are as follows: $1,490 million in 2024, $2,250 million in 2025, $2,881 million in 2026, $3,422 million in 2027, and $3,873 million in 2028, reflecting a consistent upward trend [3][14]. - Net profit is expected to rise from $85 million in 2025 to $512 million by 2028, with significant growth rates in the initial years [3][14]. - The report highlights a Non-GAAP net profit of $150 million in 2025, increasing to $296 million in 2026, and $436 million in 2027 [3][14]. Performance Metrics - The report indicates a projected operating profit margin of over 7% for the fiscal year 2026, doubling from the previous year [6][7]. - The company’s earnings per share (EPS) are forecasted to grow from $0.14 in 2025 to $0.83 by 2028, demonstrating strong profitability potential [3][14]. - The price-to-earnings (P/E) ratio is expected to decrease from 78.2 in 2024 to 13.1 by 2028, indicating improving valuation as earnings grow [3][14]. Market Position - TAL Education is positioned favorably within the K12 education sector, with a strong market share in learning devices, achieving nearly 28% market share in sales [6][7]. - The company is expanding its product offerings, including AI learning devices aimed at enhancing educational experiences [6][7].