消息面上，中共中央、国务院26日发布关于弘扬教育家精神加强新时代高素质专业化教师队伍建设的意见，提出到2035年，数字化赋能教师发展成为常态。How is the trend of the education sector with frequent profit announcements, indicating a recovery in industry prosperity? What are the key points for the second half of the year as the sector's market outbreak intensifies?
On August 29, Financier Society News (Editor Feng Yi) reported a short-term outbreak in the Hong Kong stock market education sector.
As of the report deadline, Southern Vocational Education (06913.HK) surged over 15%, with a peak intraday increase of about 31%; JH Education (01935.HK) rose over 7%; Tianli International Holdings (01773.HK) and XJ Education International Holdings (01765.HK) both surged over 4%.
On the news front, on the 26th, the Central Committee of the Communist Party of China and the State Council issued opinions on promoting the spirit of educators to strengthen the construction of a high-quality professional teacher team in the new era, proposing that by 2035, digital empowerment of teachers will become a norm.
Combined with the above news, market confidence in the 'bottoming out' judgment of the education industry policies has been reinforced.
Huaxi Securities analyst Tang Shuangshuang stated in a research report on August 23 that K12 education and academic education policies have relatively stabilized, making it one of the more certain investment directions, with profit improvement expected to continue due to supply clearance, and summer enrollment growth maintaining a rapid pace.
Furthermore, analysts Liu Yang and Yu Jian from Caitong Securities pointed out in a recent report that with the start of special recruitment in various regions, major training institutions are entering the peak delivery season in the second half of the year.
It is worth noting that many education stocks recently announced outstanding performance figures, realizing the recovery expectations in batches, also indicating a continuous rise in industry prosperity.
According to the financial report, from March 1 to May 31, 2024, the two major education and training giants in China, New Oriental and TAL Education, achieved revenues of 1.1367 billion US dollars and 0.414 billion US dollars respectively, with a year-on-year increase of 32.1% and 50.55%.
In the Hong Kong stock market, the training institution Koolearn Technology Holdings (02469.HK) released its mid-year performance in 2024, achieving a revenue of 1.63 billion yuan and a net profit of 0.28 billion yuan, a year-on-year increase of 240.9%.
In the A-share market, leading education company Offcn Education Technology announced a year-on-year increase of 41.38% in net profit in the first half of the year, followed by a limit-up, triggering a collective rise in education stocks.
Caitong Securities stated that after the start of the 2025 public service examination and training cycle, leading companies have increased their investment in base classes and developed long-term class types to meet market demand, and their market share is expected to continue to rise.
According to a recent research report by Guolian Securities, the current regulatory policies for off-campus training are progressing towards legalization, and the industry is developing in a normalized regulatory environment. In the context of the national strategy of building a strong education country, new types of educational services and intelligent products are constantly being developed, which are expected to tap into and create family and social education needs.
Overall, the education track is gradually confirming its recovery, and the business climate is on the rise. Especially in the subdivided track, leading education stocks are leading the way in the rise, which may also indicate the arrival of a new industry cycle.
