Since 20 17, the overseas listing process of domestic high-quality education assets has obviously accelerated, and the number of private school assets in overseas markets, especially in the Hong Kong stock market, has surged. Based on the assets of 16 private schools that have successfully landed in overseas capital markets or submitted hearing materials, this paper deeply analyzes the key elements of their income and explores the core logic of their subsequent expansion.

It is understood that at present, the number of private schools has accounted for one-third of the number of schools in the country, and the number of students has accounted for one-fifth of all students.

The popularization rate in college is the highest, followed by high school and the lowest in compulsory education. It is predicted that the layout of private assets in the field of academic education in the future will form an "inverted triangle" structure with low compulsory education stage and high high school and higher education stage. Driven by many efforts, the market income scale of private schools has expanded rapidly. In 20 16, the market scale of private education exceeded 300 billion, reaching 3 127 billion.

Stable profit and high profit rate: at the operational level, the number of students and tuition fees are the core elements of income, and the degree increment and price increase space are important factors to judge the income potential. The cost mainly comes from employees' salaries, depreciation and amortization and tax expenses. We believe that the return on assets of private schools is stable, with a gross profit margin of more than 45% and a net profit margin of more than 30%, with stable returns and high profit margins, focusing on companies with incremental degree potential and strong cost control capabilities.

The "price" at the income end of private schools: paying attention to the room for improving the average tuition fee per student driven by market-oriented pricing.

The main source of ARPU value is students' tuition and accommodation fees, followed by some supporting services, such as summer camp, study tour and extracurricular interest training. Tuition and accommodation are the pillars of income, accounting for more than 80% on average. Among them, international K 12 schools charge the highest fees (more than 30,000, and international high schools charge more), followed by ordinary K 12 (between 20,000 and 40,000), and private colleges charge the lowest fees (5000- 1 10,000). Generally, the price increase takes 2-3 years as a cycle, and the increase rate is about 10%. In terms of value-added services, the overall income is small and uncertain, and the types of supporting services of private schools in the basic education stage are relatively rich. At present, the supporting services and value-added services of Ruijian Education and Maple Leaf Education are mature, accounting for 365,438+0% and 65,438+09% respectively, and higher education generally accounts for less than 65,438+00%.

Other income and income: it can be divided into business income and non-business income.

Among them, the business category includes serving students, operating income of colleges and universities, consulting income and so on. This is relatively certain; Non-operating income mainly includes rental income, government subsidies, investment income and interest income, which is highly volatile. For example, in 20 17, the government's subsidy for people's livelihood education reached 103 billion yuan, up 159.42% year-on-year, accounting for 2 1.55% of the fiscal revenue.