The qualification for the company's first technician institute has been approved, and it is expected to extend the length of schooling after more regional centers are completed and the technician institute qualification is approved.
According to the Wisdom Finance app, Huaxi Securities released a research report stating that they maintain a "buy" rating for China East Edu (00667). In the short term, the bank expects performance to continue to exceed expectations with cost control; in the medium term, it is anticipated that long-term student growth will gradually recover after enrollment normalizes; by category, the bank predicts pressure on IT but expects recovery in cooking, continued rapid growth in autos and beauty industry, sustained trend of reducing losses in Europe and beauty industry, and improvement in net margin for car services. The company's long-term advantages lie in its employment competitiveness and ability to quickly adjust courses in response to market changes. The qualification for the company's first technician institute has been approved, and it is expected to extend the length of schooling after more regional centers are completed and the technician institute qualification is approved.
The main content of Huaxi Securities is as follows:
Event Overview
On October 21, 2024, the company announced that Anhui Wantong Senior Technician School, fully owned by the company, has officially been upgraded by the Anhui Provincial Government to Anhui Wantong Technician Academy. Anhui Wantong Technician Academy currently has over 8100 students and 463 full-time teachers, covering an area of approximately 0.174 million square meters, with over 0.15 million square meters of construction area and over 0.028 million square meters of practical training area. It is equipped with over 100 training rooms, 3540 practical training stations. Currently, it offers 18 majors including new energy autos testing and maintenance, intelligent connected auto technology, auto testing, auto maintenance, industrial robot application and maintenance, mechatronics technology, as well as 14 permanent senior technician majors and 3 pre-technician majors in auto testing, auto maintenance, and mechatronics technology.
This is the company’s first technician academy. Analyzing the upgrade to a technician academy:
(1) It reflects the company's teaching strength and level of education have been fully recognized by the government. It is also a strong proof of the company's determination to expand and strengthen vocational education industry parks, marking the company's response to the national policy call to take a solid step towards building a vertically integrated vocational education system.
After upgrading to the technician college, the future attractiveness to high school students will be further strengthened, and it is expected to launch a five-year professional program, thereby extending the school system and increasing the number of students on campus.
To continuously enhance the level of education and enrich the product sequence of the company, providing strong support, and accumulating rich experience in training technicians, senior technicians, and other high-skilled talents. In the future, with the completion of more regional centers, it is expected to achieve a multi-level, high-level educational matrix of skills training, secondary vocational education, technical workers, senior technical workers, and technician colleges. This also lays the groundwork for exploring paths and models for the rapid scale-up of upgrading technician colleges.
The company's technician college has three pre-technician majors: automobile inspection, automobile maintenance, and electromechanical integration technology. The company continues to deepen the integration of production and education, focusing resources on cultivating skilled talents urgently needed in new energy vehicles, intelligent manufacturing, and other new high-quality productive industries. It collaborates with leading key enterprises to jointly build teacher training courses, synchronously introducing new technologies and tools from enterprises into teaching, providing students with better internship opportunities, promoting effective integration of production and education, and enhancing enrollment attractiveness.
Risk warning
Potential risks of policy changes, IT declines higher than expected, cooking recovery falls short of expectations, high cost risk, systemic risks.