Weekly report of education industry: Jincheng College under China education is registered as a profit-making college, and China education has obtained 1 billion yuan of M & a loan
On February 8, the Ministry of Education issued the key points of the Ministry of education’s work in 2022 (hereinafter referred to as the key points) to deploy the educational work tasks for the new year. The key points of work put forward: 1) the strategic position of giving priority to the development of education should be implemented in the education work in 2022. Adhere to the principle that the proportion of national financial education funds in China’s gross domestic product (GDP) should be “no less than 4%”, ensure the intensity of financial education expenditure, speed up the progress of expenditure, and ensure that “two only increase but not decrease”. 2) Strengthen the guarantee of compulsory education teachers’ salary and income, and ensure that the average salary level of compulsory education teachers is not lower than that of local civil servants. 3) We will improve the funding guarantee mechanism for inclusive preschool education. 4) Promote all localities to strictly implement the standard of public funds per senior high school student, and explore the system of differentiated per student funding for vocational education according to major categories. 5) Improve the management system of state-owned assets and improve the efficiency of the use of state-owned assets.
At present, we recommend two main lines: (1) Vocational Education: Shanghai Action Education Technology Co.Ltd(605098) , Jiangsu Chuanzhiboke Education Technology Co.Ltd(003032) ; (2) Higher education: at present, some higher education stocks 22pe have fallen below 10 times, mainly due to: 1) higher education companies are cautious about M & A expectations, partly due to the current upside down valuation of the primary and secondary markets; 2) At present, most regions have not yet issued detailed rules for the selection of business and non business, and the market is worried about the policy risk of higher education stocks; 3) Concerns about future price increases and the ceiling of net interest rates. We believe that, on the one hand, the performance of higher education sector continues to be stable. On the other hand, the state accelerates the implementation of vocational undergraduate work, and private undergraduate schools are expected to benefit. We continue to recommend China Education Holdings, hope education, Gaoxin education group, Zhonghui education, China Science and technology training, etc.
Market review: underperformed the Shanghai Composite Index by 1.74%
This week, CITIC education index rose 1.28%, Shanghai index rose 3.02%, underperforming the market by 1.74%. So far in 2022, the CITIC education index has fallen by 9.70%, the Shanghai index has fallen by 4.86%, underperforming the market by 4.84%.
Industry news
Recently, Beijing Kaiwen Education Technology Co.Ltd(002659) held an investor relations activity meeting to disclose the company’s business direction. Beijing Kaiwen Education Technology Co.Ltd(002659) said that according to the regulations on the implementation of the people’s promotion law, the company will change the organizers of its two schools to meet the compliance requirements. In the future, the company will vigorously expand vocational academic education. In the future, the company will continue to maintain a compliant market-oriented education service transaction with the two schools, including rent income, quality education courses, etc., and strive to ensure a stable income scale of more than 100 million. In addition, Beijing Kaiwen Education Technology Co.Ltd(002659) said that the company will host K12 business in the field in the future. It is arranging new projects and has cooperation opportunities with Shanghai, Guangdong, Shenzhen and other places. It is expected to make clear progress in the first quarter of this year. In the direction of transformation, the company cuts into the vocational education track and will not choose certificate examination and grade examination services. The main reason is that the industry threshold is high and the cost of obtaining customers is high. In the next two years, the company will focus on the development of Vocational Education in secondary vocational, higher vocational and applied undergraduate fields.
Risk tips
Uncertainty of the impact of the epidemic: the recovery progress of the epidemic has an impact on offline education. Risk of policy change in the education industry: the policy change in the education industry affects the enrollment and fees of K12, vocational education and higher education companies. The risk that the number of students does not meet the expected enrollment needs of enterprises is weakened or weakened.
