Jinwu Financial News | The performance of education stocks was weak. New Oriental (09901) fell 17.91% after the results, Chuanglian Holdings (02371) fell 16.67%, Excellent Education Group (03978) fell 7.69%, Thinking Music Education (01769) fell 6.01%, and Guangzheng Education (06068) fell 1.67%.
Cinda Securities said that the overall K12 education and training market concentration is low. Based on the measurement of market space and revenue of leading companies, CR3 was only 7.0% in '23, and the pattern is relatively scattered; after experiencing significant clean-up on the supply side, leading companies are expected to seize more market share with brand power, retained outlets, and teachers.
Minsheng Securities said that the third anniversary of the “double reduction” is approaching, and various regions have launched “double reduction” special actions one after another. On the one hand, they are clearly speeding up the approval of non-subject out-of-school training institutions, and at the same time focusing on investigating and punishing irregularities such as small black classes and invisible variant subject training, as well as bottom-line requirements such as financial safety and fire safety for certification agencies. The bank believes that the current regulatory environment favors leading stock compliance agencies.