On June 3, 2024, with the steady recovery of the education industry and the continuous increase in market confidence, Beststudy Edu Group (03978.HK) ushered in a historic moment—a stock price breakthrough of 4 yuan, reaching the highest level since the implementation of the double reduction policy. The highest daily increase was close to 20%, setting a new high since 2020. This undoubtedly proves the stable development and market strategy of Beststudy Edu Group in the past period of time.
Since early 2024, Beststudy Edu Group has received a lot of attention from the capital markets. Head brokerage firms such as Tianfeng Securities, Founder Securities, CICC International, Caitong Securities, Guotai Junan Securities, Huaxi Securities, and GF Securities have successively released research reports on Beststudy Edu Group, covering it for the first time and giving a "buy" rating. This rating not only represents the brokerage firms' bullish view on Beststudy Edu Group's future development but also reflects the market's recognition of Beststudy Edu Group's leading position in the education industry.
Beststudy Edu Group's activity in the capital markets is also impressive. According to information from Beststudy Edu Group's investor relations public account, the company will participate in 9 brokerage strategy meetings in Beijing, Shanghai, and Shenzhen in June. This not only demonstrates Beststudy Edu Group's close interaction with the capital markets but also reflects the company's proactive approach to investor relations management. In addition, according to the investor relations department of Beststudy Edu Group, the company has been invited to participate in many brokerage strategy meetings since the beginning of the year and has conducted research and communication with well-known investment institutions from all over the world, including top-notch investment institutions in the United States, Singapore, and China's Hong Kong, as well as leading public and private equity funds within the country through on-site investigation and communication through teleconferencing and reverse roadshows.
In terms of business expansion, Beststudy Edu Group has also demonstrated strong growth momentum. The company is rooted in South China and actively lays out areas such as Guangzhou, Shenzhen, Foshan, and other regions. It has opened multiple branches this year, and summer enrollment is in full swing. This positive market performance has also been recognized by brokerage analysts, who have successively raised Beststudy Edu Group's full-year revenue and profit expectations, making it the first company in the education industry to raise profit expectations.
It is worth mentioning that Beststudy Edu Group is the first company in the education industry to restart dividends since the implementation of the double reduction policy. This move not only actively responds to the demands of regulatory authorities and investors but also embodies the company's commitment to increasing shareholder returns. Beststudy Edu Group has decided to pay a dividend of 3.5 Hong Kong cents per share on June 6, 2024. This decision undoubtedly further enhances shareholders' confidence in the company.
The rise in Beststudy Edu Group's stock price is not accidental, but the result of the company's efforts in the capital markets, business expansion, and investor relations management. With the gradual recovery of the education industry and the company's active layout in various aspects, the market should believe that Beststudy Edu Group will burst out with even more dazzling brilliance.