The Zhitong Finance App learned that China Education Holdings (00839) is now up more than 6%. As of press release, it has risen 5.8% to HK$4.74, with a turnover of HK$51.5643 million.
According to the news, on February 8, the Ministry of Education issued the “Regulations on the Administration of Out-of-School Training (Draft for Comments)”, which is expected to boost investment sentiment in the education and training sector. Shen Wan Hongyuan (Hong Kong) pointed out that although the for-profit policy for higher education selection fell short of expectations, we judged that universities owned by listed companies had a higher probability of being profitable than other private schools, because the former had better quality of running schools. Wait for sector valuations to be repaired after the policy is implemented.
Guoyuan International previously stated that China Education Holdings insists on running high quality schools, and that member schools are of good quality, and it is expected that the risk of depreciation of higher education member schools will be manageable in the future. Schools in the Greater Bay Area and Shandong have sufficient capacity, and endogenous growth is sustainable in the medium term. The policy strongly supports vocational education, and the catalyst for future industry valuation recovery is the implementation of for-profit options in higher education schools one after another.