Forbes - - TECHNOLOGY - BY JIM OBERWEIS Jim Oberweis is pres­i­dent of Oberweis As­set Man­age­ment

Long be­fore col­lege, Chinese stu­dents be­gin a high­stakes game for col­lege ad­mis­sion. The lead­ing Chinese K-12 af­ter­school tu­tor­ing com­pa­nies, TAL Ed­u­ca­tion Group and New Ori­en­tal Ed­u­ca­tion & Tech­nol­ogy Group, are ben­e­fit­ing from ris­ing dis­pos­able in­come and mar­ket con­sol­i­da­tion (es­pe­cially since the top two brands still have un­der 5% ag­gre­gate mar­ket share). Some in­vestors have feared new tighter reg­u­la­tions for af­ter­school tu­tor­ing in China. I be­lieve these reg­u­la­tions will force out un­li­censed providers to the ben­e­fit of lead­ers like TAL and New Ori­en­tal. Ex­pect 50% growth in rev­enues for TAL and 30% at New Ori­en­tal over the next year. TAL is grow­ing faster, but New Ori­en­tal has kept a tight fo­cus on op­er­at­ing mar­gins. Buy both.

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