Education stocks were strong in early trading. As of press release, China Education Holdings (01769) rose 11.97% to HK$5.52; China Education Holdings (00839) rose 6.01% to HK$5.47; Zhonghui Group (00382) rose 5.66% to HK$2.8; and New Oriental-S (09901) rose 3.5% to HK$69.55.
The Zhitong Finance App learned that education stocks had strong performance in early trading. As of press release, Simile Education (01769) rose 11.97% to HK$5.52; China Education Holdings (00839) rose 6.01% to HK$5.47; Zhonghui Group (00382) rose 5.66% to HK$2.8; and New Oriental-S (09901) rose 3.5% to HK$69.55.
Caitong Securities pointed out that on the K12 side, the Ministry of Education's “Regulations on the Administration of Out-of-School Training (Draft for Comments)” was previously issued, clarifying the basic position of extracurricular training as a useful complement to school education. Leading companies completed the transformation of non-subject training business at the compulsory education stage and subject training business at the high school level. The demand side continued to be released after the epidemic, driving the performance growth of major companies.
Zheshang Securities pointed out that private higher education assets have grown steadily, performance certainty has strengthened, valuations have been suppressed by the 2021 double reduction policy on the education sector as a whole, and sector valuations have continued to decline in the past two years due to the global macro environment and Hong Kong stock liquidity. With the recovery of Hong Kong stocks, there is room to repair the current valuation center of high-quality higher education enterprises.