TAL: Expect Better FY2Q20 Driven By High Growth In Course And Attendee Capacity Due To Online; Maintain BUY
TAL will report FY2Q20 results on October 24th before the markets open with an 8am EST conference call. Based on our data and model, we believe TAL’s FY2Q20E revenue is likely to be higher than consensus at $915M and our model. Peiyou is likely to grow 25.0% Y/Y vs. 20.0% Y/Y growth in FY1Q20 as its course and attendee capacities increased significantly due to its dual teacher and Peiyou Online. Xueersi.com, TAL’s online education, is also growing rapidly and is likely to grow 115% - 118% Y/Y driven by course unit expansion, as well as its promotions. We maintain our BUY rating.