Jinwu Financial News | According to Tianfeng Securities Research, Tianli School, a subsidiary of Tianli International Holdings (01773), achieved remarkable results (127 students were admitted to the top 50 in the global college entrance examination, including Qingbei, with an undergraduate rate of about 83.5%, and a one-year rate of about 50.3%). Tianli Education not only has strong competitiveness in the field of traditional college entrance examinations, but has also shown outstanding results in diversified education in the past two years, while also opening up more room for future development: that is, traditional high schools and diversified high schools go hand in hand to expand and strengthen the scale of the high school education business.
According to the bank, according to estimates on the Tianli Investor Relations website, the maximum capacity of Tianli's current school network can reach 200,000 people. As of November 23, the total number of Tianli students is around 100,000, so even if it does not expand new business in the future, the company will have 100% room for business growth as the school naturally fills up. Judging from the current market research and early expansion of Tianli's trusteeship business, there is a strong demand for high-quality private education services in the market. FY2023 Tianli has hosted 7 schools. Through the current in-depth practice and refinement of this new business, the company expects the progress of trusteeship contracts to accelerate next school year.
According to the bank, Tianli has maintained a 30% dividend ratio since its listing. The core is to guarantee the company's continued development while taking into account shareholders' benefits. It is not ruled out that the dividend ratio will be further increased in the future. The company will conduct comprehensive assessments and considerations based on the funds required for subsequent business development, with medium- to long-term sustainable development as the ultimate goal. Currently, all of the company's business is being carried out in an orderly and legal compliance manner, and overseas dividend channels have already been opened, so there will be no substantial barriers to future overseas dividends.
The bank estimates that the company's FY24-25 revenue will be 32.45 billion yuan, adjusted net profit will be 55/ 850 million yuan, EPS will be 0.26/0.40 yuan/share, respectively, and the corresponding PE will be 13/9X, respectively. The bank maintains profit forecasts and maintains a “buy” rating.