TAL INTERNATIONAL GROUP INC：4季度品牌建设投放加大；2026财年盈利能力提升是首要目标-20250425

Investment Rating - The report assigns a "Buy" rating to TAL Education Group (TAL US) with a target price of $13.30, indicating a potential upside of 48.9$8.93 [4][15]. Core Insights - The report highlights that TAL Education is focusing on enhancing its profitability in the fiscal year 2026, with a projected revenue growth of 30%, reaching approximately $2.917 billion [2][8]. - The company is expected to benefit from strong demand in quality education training and sales of learning devices, with a significant increase in enrollment driven by the expansion of teaching points [8][9]. - The report emphasizes the importance of AI technology in improving operational efficiency and reducing costs, projecting an adjusted operating profit margin of over 7$1.49 billion for 2024, $2.25 billion for 2025,$2.917 billion for 2026, $3.418 billion for 2027, and$3.864 billion for 2028, with year-on-year growth rates of 46.2%, 51.0%, 29.6%, 17.2%, and 13.0% respectively [3][16]. - Net profit is expected to increase from $85 million in 2025 to$512 million by 2028, with significant growth rates of 73.6% in 2025 and 107.9% in 2026 [3][16]. - The report notes that the adjusted EPS is projected to rise from $0.14 in 2025 to$0.84 in 2028, reflecting a strong recovery and growth trajectory [3][16]. Market Performance - The stock has shown a 52-week high of $14.79 and a low of$7.42, with a current market capitalization of approximately $4.09 billion [6][15]. - The stock has experienced a year-to-date decline of 10.88% [6]. Strategic Focus - TAL Education is committed to providing high-quality teaching services and content, with ongoing investments in product diversification and channel variety to adapt to different business cycles [8][9]. - The company is also enhancing its brand influence through technology integration, content upgrades, and user experience improvements, including the introduction of new AI-assisted features [8][9].