This article is edited by Guang Zheng Hang Seng: the second largest private school in western China, "self-construction + light assets" refers to the second and third line of fertile soil in the country.

On July 12, 2018, Tianli Education officially landed on the Hong Kong stock market, becoming the 10th private school to land on Hong Kong stocks. The company is the second largest K12 private school operator in western China, and its main business includes K12 education, K12 extracurricular training, early education and supporting services.

Main business: wide coverage of multi-age groups and simultaneous development of three business models

At present, Tianli Education's main business mainly includes K12 education, K12 extracurricular training, early education and supporting services. In terms of distribution, the school network consists of 13 K12 schools, 11 training centers and 4 early education centers operating in eight cities in China. From 2015 to 2017, the Group steadily expanded the school network at the rate of opening two new K12 schools every year. Give priority to its own, trusteeship as a supplement, join and add wings, the company's school network shows a multi-point blooming trend.As the company's main business development model, its own business model will become the company's business growth point for a long time. At present, the company owns and operates 10 K12 schools, 9 training schools and 1 early education center.

Financial data: absolute volume is beginning to take shape, with a strong growth trend

Revenue is smaller than other companies in the same industry, but it is in a steady growth trend, and the growth rate is among the highest. Tianli Education's operating income increased from 218 million yuan in 2015 to 468 million yuan in 2017, with a compound annual growth rate of 46.51 percent.

The scale of net profit is small, and the growth rate of net profit is high. The net profit in 2015-2017 was 17 million yuan, 72 million yuan and 131 million yuan respectively, and the scale of net profit was smaller than that of the other four companies, but the annual compound growth rate of net profit in the past three years was as high as 181.42%.

The net profit margin and gross profit margin have increased year by year, and the company's profitability has improved steadily. As the campus that the company has expanded in recent years has gradually matured and its profitability has been significantly enhanced, the company's net profit margin has increased from 8.11% in 2015 to 28.44% in 2017, and the gross profit margin has increased from 26.67% in 2015 to 42.29% in 2017.

Market pattern: the vast western private basic education market, with regional dividends.

According to the Frost Sullivan report, the market space for basic education in China was about 280 billion in 2017, with an average annual compound growth rate of about 14%. The market space of basic education in western China is about 48 billion. The market income of private basic education in the western region increased from 21.3 billion yuan in 2012 to 41.2 billion yuan in 2016, with a compound annual growth rate of 18.0%. It is expected to continue to grow at a compound annual growth rate of 15.6% from 2016 to 2021, reaching 85.1 billion yuan in 2021.

Competitive advantage: brand + standardized management output helps the company develop rapidly

Based on the western region, the company adopts the method of "self-building + light assets" to expand the company's school-running network. As the second largest private K12 school group in western China, Tianli Education is based in Sichuan Province, one of the largest K12 education markets in China, and has achieved a preliminary layout in Inner Mongolia, Shandong Province and Hunan Province.

The teaching achievement is outstanding, has the strong brand reputation. In the senior high school part, about 51.4%, 62.9% and 71.6% of senior high school students were admitted to one university in China in 2015, 2016 and 2017, respectively, which is much higher than the average level of Sichuan Province. In addition, five students were admitted to Tsinghua University or Peking University in 2016 and four in 2017.

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