China Education

We reiterate our Outperform rating on China’s leading after-school tutoringbrands TAL and EDU, as we expect the two companies to expand their marketshare in the growing K-12 tutoring segment, underpinned by their quality brandnames. Both companies will report their May-quarter results next week. EDU isreporting on Tuesday, 25 July, followed by TAL on Thursday, 27 July. Weexpect strong results from both EDU and TAL, and we believe enrolment growthmomentum will carry on into the summer and the new semester.

    Summer promotion