This week’s view
The office of the Academic Degrees Committee of the State Council recently issued the opinions on doing a good job in the authorization and awarding of bachelor’s degrees in vocational schools at the undergraduate level (hereinafter referred to as the opinions), which makes it clear that ordinary undergraduate and vocational undergraduate have the same value in terms of certificate effectiveness, and have the same effect in terms of employment, postgraduate entrance examination, public examination, etc It is clear that vocational undergraduate courses will be included in the existing bachelor’s degree work system, and bachelor’s degrees will be awarded according to discipline categories. The format of bachelor’s degree certificates is consistent. However, in terms of bachelor’s degree authorization and degree award standards, we will strengthen the characteristics of vocational education and education, highlight professional ability and quality, improve the quality assurance system for vocational undergraduate courses to award bachelor’s degrees, and promote the high-quality development of vocational undergraduate courses.
This week, the Guangdong Provincial Department of Education announced the list of “preparation for reform and review” of online discipline after-school training institutions. As of December 1, 14 online education institutions, including XRS, homework help, Penguin counseling, leader education and other companies, have “planned to pass the approval” and will obtain the school running license for online discipline training. Among the 14 institutions to be certified in Guangdong Province, 7 non-profit institutions provide compulsory education discipline training; Seven for-profit institutions, including XRS, homework help and head education, provide high school discipline training.
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 mergers and acquisitions, partly due to the current upside down valuation of the primary and secondary markets; 2) at present, most regions have not 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 the future price increase and the ceiling of net interest rate. 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. They continue to recommend China Education Holdings, hope education, Gaoxin education group, Zhonghui education, China Science and technology training, etc.
Market review: outperforming Shanghai index by 5.16%
This week, CITIC education index rose 9.26%, Shanghai index rose 4.10%, outperforming the market by 5.16%. So far in 2021, CITIC education index has fallen by 48.60%, Shanghai index has fallen by 7.88%, and underperformed the market by 40.72%.
Industry news
Recently, Offcn Education Technology Co.Ltd(002607) terminated the fixed increase of RMB 3.9 billion and applied for the withdrawal of relevant issuance materials, This is mainly due to: (1) in August this year, the law firm hired by Offcn Education Technology Co.Ltd(002607) was filed for investigation, so the CSRC terminated the examination of Offcn Education Technology Co.Ltd(002607) administrative license application for fixed increase; (2) after Offcn Education Technology Co.Ltd(002607) announced the Q3 performance forecast in 2021 on October 14, Offcn Education Technology Co.Ltd(002607) received the letter of concern from Shenzhen Stock Exchange, in which it was required to explain the changes in employment performance; (3) after the release of the third quarterly report, Offcn Education Technology Co.Ltd(002607) Because the amount of connected transactions with related parties has reached the disclosure standard but failed to fulfill the obligation of information disclosure, we received a warning letter from Anhui securities regulatory bureau.
Risk statement
Uncertainty of epidemic impact: the progress of epidemic recovery 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 of enrollment not reaching the expected number: the weakening of terminal demand or the weakening of the enterprise’s own advantages make enrollment difficult.
