Recently signed Chongqing Fuling Tianli School and Guangxi Baise Tianli School Project according to the official WeChat of Fuling High-tech Zone, on October 23, the Fuling New District Management Committee signed an investment agreement with Shenzhou Tianli Education Group to formally introduce the Fuling Tianli School project.
Tianli Education plans to build and operate a consistent high-quality private education project, Fuling Tianli School, which includes primary, junior middle and senior high school sections in Fuling New area. The school is located in Daoshuangxi Community, Ma'an Street, covering an area of about 160mu. It plans to enroll about 4680 students, ensure that the enrollment rate of the first college entrance examination is more than 70%, and strive to build it into an influential national "double-first-class" student base in the city. According to the official account of the Baise CPPCC, on October 13, the municipal government held a kick-off meeting for the construction of the Baise Tianli School Project. The Baise Tianli School Project is located in Baidong New District, with a planned construction area of 1.02 million square meters and a student size of 5040. The school plans to be completed and put into use in September 2021.
At present, 19 Tianli School projects (including schools starting in September 2020) have been reserved to accumulate energy for follow-up development.
According to the company's semi-annual report and recent newly signed schools, the company has signed projects Dongying Tianli (self-owned, 4000), Rizhao Tianli (self-owned, 4680), Jiange Tianli (self-owned, 4000), Yi Chunli (self-owned, 6000), Chengdu Pixian Tianli (self-owned, 2800), Luzhou Tianli flagship (self-owned, 5000), Luzhou Tianli Primary School (commissioned, 1845), Xiangshan Tianli School (commissioned). 2400 people), Lanzhou Tianli, Tongren City Wanshan District Tianli, Chuzhou Laian County Tianli, Chuxiong Tianli, Jining Tianli, Kaili Tianli, Guizhou Kaiyang Tianli, Inner Mongolia Wulanchabu Tianli, Yulin Tianli, Fuling Tianli, Baise Tianli.
Earlier, the company announced that Tianli's Chengdu Tianli School accepted 440 million yuan injection from institutions and individuals, including Industrial and Commercial Bank of China Financial Services, to acquire a 51% stake in the Chengdu school sponsor company. Tianli's move is to improve the efficiency of the use of funds and cover more school needs.
Recently, the official website of the Ministry of Education published a letter on the reply to proposal No. 3306 (Education No. 324) of the third session of the 13th National Committee of the Chinese people's political Consultative Conference.
"the structural optimization and layout adjustment of compulsory education is a systematic project with tight time, heavy tasks and high requirements. while unswervingly implementing the central strategic plan, the Ministry of Education will be combined with local reality. Fully consider the historical situation and practical difficulties of the development of compulsory education in various provinces and cities"; "the party and the state fully affirm the status and role of private education." "at the same time, we should fully respect the autonomy of privately-run compulsory education schools, encourage private primary and secondary schools to find the right development path, innovate actively, and reform steadily on the premise of compliance with laws and regulations. to create a good development environment in which citizens do their work without chaos, competition, mutual reference and common progress, guide the healthy development of private compulsory education, and improve the quality of compulsory education as a whole."
Maintain earnings forecasts and give buy ratings:
Tianli effectively enriches the local education supply by virtue of its own school-running experience, and improves the operational efficiency with the help of the unique flexible advantages of the private sector; on the other hand, it will effectively reduce the pressure on local finance, and most local governments across the country adopt a positive and welcoming attitude towards private education. We estimate that the annual net profit of Tianli FY20-21 is RMB 390 million and 530 million respectively, and the corresponding PE is 30xPE and 22xPE, respectively.
Risk hint: the enrollment is not as expected, the implementation regulations of the people's Promotion Law have not yet landed, and the core executives are lost.