FY19 Insight Education's revenue was 1,682 million yuan, up 34.85% year on year. On November 25, Smart View Education released the 2019 fiscal year annual results announcement. FY19's annual tuition and accommodation revenue was $1,145 million (68.1%), an increase of 36.2% over the previous year. The revenue from ancillary services was 536 million yuan (31.9%), up 32.1% year on year. The main business cost of FY19 was 940 million yuan, an increase of 33.9% over the previous year. Specifically, employee costs were 471 million yuan, up 49.6% year on year; depreciation and amortization were 95 million yuan, up 23.4% year on year, FY19 gross profit was 742 million yuan, up 36.1% year on year; gross profit margin was 44.1%, +0.4% year on year; other income decreased by 38.3% year on year to 33 million yuan; other income and losses were -176,000 yuan. Management expenses were 253 million yuan, up 14.5% year on year, and management expenses were 15.05%, down 2.67 percent year on year. Sales expenses were 26 million yuan, up 32.3% year on year, and sales expenses were 1.53%, down 0.03% year on year. Financial expenses amounted to 107 million yuan, an increase of 86.4% over the previous year. Income tax expenses amounted to 55 million yuan, an increase of 45.1% over the previous year. The adjusted net profit was 429 million yuan, up 33.1% year on year; the adjusted net profit margin was 25.49%, down 0.33 percent year on year. There were 60,000 students enrolled in the 19/20 school year, an increase of 16.7% over the previous year. New schools in Yunfu, Foshan, and Pakistan have been opened, with a current total capacity of 140,000. In the 18/19 school year, about 99% of the graduates of Smart View Elementary School were admitted to middle school, and about 50% of the middle school graduates were admitted to high school. Smart School Features: Wisdom School is a boarding school with student dormitories. To promote the comprehensive and high-quality development of students, Wisdom offers a range of school-based elective courses, including sports, art, music and Chinese culture courses. The wise students have made great strides in the fields of basketball, athletics, martial arts, music, dance, and the art of Chinese calligraphy. For example, the Dongguan **** Middle School men's basketball team has won many municipal and provincial championships in the past, and won third place in the 2019 National Middle and High School Basketball Tournament. Student promotion rate: In the 2018/2019 academic year, more than 90% of the high school graduates of Ruijian School were admitted to Chinese universities, and more than 50% of the high school graduates of **** Middle School in Dongguan were admitted to first-class undergraduate universities in China as certified by the “Guangdong University Application and Admission Guidelines” issued by the Guangdong Provincial Institute of Education Examinations. Wisdom focuses on Daya Bay and adopts a two-pronged expansion strategy: I) Expanding school capacity: The estimated total capacity of current schools in the 2019/20 school year is about 70,000 students. After receiving several government approvals, assuming that all of the land available for expansion in existing schools and new schools under construction is fully used, Insight estimates that the maximum capacity may be expanded to more than 140,000 students. II) Start more new schools: In order to maintain Insight's future growth momentum, in addition to expanding existing school capacity, Wisdom will continue to open new schools through the operation of relatively small potential asset-light schools in Guangdong Province, and build relatively large new schools on plots already purchased with land use rights for educational purposes. Currently, two new schools are under construction, with a total of 400 acres of educational land and a maximum capacity of about 155 million people. The company has signed framework agreements with the local governments of Guangzhou and Zhaoqing in Guangdong Province on proposed cooperation for the development of boarding schools in Guangzhou and Zhaoqing. Maintaining profit forecasts and giving holding ratings, Wisdom was founded in 2003. Measured by enrollment, it is one of the largest private education groups operating high-end primary schools and middle schools in South China. Wisdom School mainly targets students from middle class or above Chinese families. Compared with the 2017/18 school year, the total number of students enrolled in the 2018/19 academic year increased by 25.9% to 54,420 students, and the total student capacity of Wisdom School increased by about 21.3% to 63,000 students. We expect the company's FY20-21 EPS to be HK$0.31, HK$0.39, and PE 12x and 9x respectively. Risk warning: enrollment falls short of expectations; implementation regulations of the Public Promotion Law have not yet been implemented