First Read TAL Education Group: FY27 starts strong with solid margin beat

研报英文原文证据摘录

First Read TAL Education Group: FY27 starts strong with solid margin beat

Global Research

31 July 2026ab

First Read

EquitiesTAL Education Group

FY27 starts strong with solid margin beat China

Consumer Services

12-month rating Buy

Q1FY27 solid beat in both revenue and margins

TAL reported strong Q1 results across the board (quick take), with revenue and adj. OPM 12m price target US$19.70

beating consensus by 6% and 12ppt. Adj. NP came in 256% ahead of consensus Prior : US$18.30

expectations, further aided by higher other income.

Price (30 Jul 2026) US$11.92

Key takeaways from conference call RIC: TAL.N BBG: TAL US

1) Learning services/Peiyou: Mgmt. remains focused on driving high-quality, Trading data and key metrics

sustainable growth with improving LC operating efficiency and measured network 52-wk range US$12.91-8.95

expansion. Peiyou small-class retention remained healthy at 80%+. While growth is Market cap. US$6.60b

expected to moderate gradually in FY27 as the business scales, mgmt. believes TAL is

Shares o/s 553m (ORD)

well positioned for sustainable long-term growth, supported by strong product

Free float 56%

capabilities, resilient education demand, and a still fragmented market. We forecast

Avg. daily volume ('000) 1,087

Peiyou/learning services revenue growth of 34%/26% in FY27. 2) Learning device:

Mgmt. noted learning device profitability improved in Q1, driven by operating-efficiency Avg. daily value (m) US$10.9

initiatives, a more ROI-focused approach, and increasing deferred revenue recognition. Common s/h equity (02/27E) US$4.74b

The business continued to deliver solid growth amidst ongoing competition dynamics, P/BV (02/27E) 1.4x

shifting consumer demand, and rising component costs, reflecting strong product Net debt to EBITDA (02/27E) NM