TAL getting to be a great buy with today's drop.
Continue to expand offline centers to support online businesses TAL will continue to add more learning centers in new cities, but with fewer number of classrooms than normal ones. These learning centers mainly serve as one of the channels for building local reputation, and support future roll out of online businesses. Online will continue to be the battle field TAL will continue to maintain its leading position in online large-class AST market. The company also believes it could make lower loss than smaller competitors given scale and stronger branding. We expect online AST could continue to be loss-making and drag overall profitability in the short-term.