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TAL Education Group TAL

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Market Overly Reacts to After-School Tutoring Policy Overhang

Jenny Tsai Senior Equity Analyst

Analyst Note

| Jenny Tsai |

On May 23, the Beijing Haidian Education Committee hosted a meeting to discuss after-school education after the CPC Central Committee, or CPCCC, meeting on Friday, which also approved easing students’ after-school burdens via a “double cutting” proposal. Post the meeting, the U.S. listed Chinese education stocks came under pressure amid market talk over increasing Beijing scrutiny, with GSX Techedu (GOTU US) down 12%, TAL Education (TAL US) down 10%, and New Oriental Education (EDU US) down 6%. 

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Company Profile

Business Description

Founded in 2003, TAL Education is one of the leading K-12 after-school tutoring providers in China. The firm offers tutoring services to students from pre-school to the twelfth grade via small classes, one-on-one personalized premium services, and online courses. In fourth quarter fiscal 2021, TAL's small classes account for 53% of its revenue, one-on-one 6%, and Xueersi.com 32%. Its tutoring services cover the core academic subjects in China’s school curriculum, such as Math (K-12), English (K-12), Chinese (K-12), Physics (Grade 8-12), Chemistry (Grade 9-12), and Biology (Grade 10-12). TAL's learning centers currently cover 101 cities in China and a total of 1,098 learning centers. In fourth-quarter fiscal 2021, current normal priced long-term course student enrolment was 6.7 million.

Contact
6 Danling Street, 15th Floor, Danling SOHO
Beijing, 100080, Cayman Islands
T +86 1052926658
Sector Consumer Defensive
Industry Education & Training Services
Most Recent Earnings Feb 28, 2021
Fiscal Year End Feb 28, 2022
Stock Type —
Employees 70,914

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