The company released profit forecast for 2024

FY24's revenue is expected to be around 3.3 billion, an increase of about 43%; adjusted net profit is about 0.577 billion yuan, an increase of about 56%.

The improvement in the company's financial performance was mainly due to a steady increase in the number of customers providing comprehensive education services, as well as a significant increase in product sales revenue achieved through the operation of an online campus mall and the integration of supply chain resources.

Recently added Nanjing hosting project

Tianli signed a new high school trusteeship project in Nanjing. The school's address is located in Lishui District, Nanjing, and covers a total area of about 100 acres. Currently, the school is in close planning and preparation, and it is tentatively scheduled to start school on September 1, 2026. After the school is fully completed and delivered, Tianli will provide it with management and operation services. According to the target positioning of “Nanjing is first-class, well-known in Jiangsu”, it will become a high-quality brand-name school with fine management, distinctive characteristics, and excellent running level and quality.

This is Tianli's first school in Nanjing, and another witness to Tianli's strategic expansion of the school network to Tier 1 and 2 cities. During the trusteeship period, Tianli will actively explore ways and methods to develop school education using various resources and methods of society to create good academic performance and social reputation for the school.

Export competition services to a school in Quanzhou

In Quanzhou City, Fujian Province, Tianli signed a service agreement with a middle school for subject competition course training services.

With the Group's excellent integrated competition talent selection and training system, Tianli will select outstanding experts and competition coaches to carry out offline teaching, and export Tianli's major teaching platforms and teaching resources; help the school further broaden the personality development channels for school students, enhance the teaching, research and competition guidance level of the school's five university competition teachers, and cultivate more outstanding students for the national strong foundation plan and special types of enrollment in key colleges and universities.

Kaixing Nursery successfully won the bid for the first public aid private inclusive childcare project in Huangpu District of Guangzhou. On October 17, 2024, the “Notice on the Public Selection of Inclusive Childcare Construction and Operation Service Agencies in Yonghe Street, Huangpu District” was comprehensively assessed, and the Guangzhou Branch of Kaixing Children's Cultural Industry Service (Shenzhen) Co., Ltd. was selected as the undertaker agency for the Yonghe Street Inclusive Childcare Inclusive Childcare Inclusive Care Project.

KID STAR Nursery School is a wholly-owned brand owned by Tianli International Holdings, a Hong Kong stock listed company. It is a high-quality childcare brand that specializes in empowering kindergartens, and is committed to providing professional high-end childcare services to elite Chinese families. Kaixing Nursery has a team of professional nurseries teachers who carefully pay attention to the growth needs of each child and provide families with personalized growth support for the baby.

Adjust profit forecasts to maintain “buy” ratings

Based on the company's FY24 performance forecast, we slightly adjusted the FY24 profit forecast, and the FY25-26 profit forecast remains unchanged; we expect the company's FY24-26 revenue to be 3.3 billion yuan, 4.6 billion yuan, and 6.2 billion yuan respectively (the original values were 3.2 billion yuan, 4.6 billion yuan, and 6.2 billion yuan, respectively); the net profit due to the FY24-26 adjustment is 0.58 billion yuan, respectively RMB, RMB 0.8 billion, and RMB 1.1 billion (original values were RMB 0.59 billion, RMB 0.8 billion and RMB 1.1 billion, respectively); FY24-26EPS was RMB 0.27 per share, RMB 0.38 per share, and RMB 0.5 per share (original value was RMB 0.28 per share, RMB 0.38 per share, and RMB 0.52 per share); corresponding PE is 14X, 11X, 8X

Risk warning: Consumption falls short of expectations, loss of core executives, fierce market competition, etc.