Firstly a rant…
<>
Why have so many tickers changed in the last few months of last year? And why instead of auto-tracking the changed stock has Yahoo just given up reconciling new with old tickers? RRRRRrrrrrr
<>
Ok that’s better. Now for something completely different.
Leaving aside one particular risk factor prejudice…
How about a company that fulfils one of the most fundamental services in the world?
How about a company that delivers the most important investment people make in their most precious belongings?
How about in a operating in a country that values this above all else in the world?
How about operating in a market place whether there is almost a complete absence of sufficient public let alone private supply?
How about operating in a market where the penetration levels are only half of a developed world neighbour?
How about being a market leader which is so fragmented the top 3 players make up only 3% of the market place?
How about operating as a disrupted online to offline player?
Ok I’m talking about the private education market in China…
TAL apart from CTRP is my most prolific China investment to date.
Its P/E of 75% is matched by a growth rate of 83% in revenues, 40%+ growth in non-GAAP income and EPS growth of 36%. It also pays a dividend.
Just when I think about taking investment money off the table they keep accelerating their growth and usually always beat and beat.
Earnings Center:
http://seekingalpha.com/symbol/TAL
http://seekingalpha.com/symbol/TAL/earnings
Earnings Release:
http://seekingalpha.com/pr/16717649-tal-education-group-anno…
Earnings Slides:
http://seekingalpha.com/article/4038243-tal-education-group-…
At 3.6Bn$ it has a long way to go I would think.
I get this is not everyone’s cup of tea and now with the recent SP rise it has become highly valued but for those prepared to consider China this looks like as fundamental a demand and growth story as it gets.
This is probably my third largest holding in a china business above CTRP and behind BABA and NetEase.
Ant