This week's view
On February 23, the Ministry of modern vocational education held a press conference on promoting the development of modern vocational education. 1) We will promote steady progress in undergraduate vocational education and promote the diversified development of secondary vocational education. 2) In the form of "small incision" and "big support" jointly built by ministries and provinces, about 10 high-level vocational undergraduate education demonstration schools will be selected and built. 3) From the original simple "employment oriented" to "pay equal attention to employment and further education", and pay close attention to the further education in line with the characteristics of vocational education. 4) In three to five years, we will build about 1000 national high-quality secondary vocational schools, demonstrate and drive the standardized management and qualified quality of the whole secondary vocational education, and guide parents and students to choose secondary vocational education rationally. 5) Promote the establishment of a "vocational education college entrance examination" system with provincial overall planning, comprehensive evaluation and diversified admission, and improve the problem of "thousands of troops crossing the single wooden bridge" through the ordinary college entrance examination. 6) We will build a digital "1 + 5" system for vocational education, continue to develop high-quality digital teaching resources, and build a national, provincial and school resource database to complement each other.
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: outperforming the Shanghai Composite Index by 4.14%
This week, CITIC education index rose 3.01%, while Shanghai index fell 1.13%, outperforming the market by 4.14%. So far in 2022, the CITIC education index has fallen by 0.61%, and the Shanghai index has fallen by 5.18%, outperforming the market by 4.57%.
Industry news
Recently, Shanghai issued the "Shanghai culture and art after-school training institution setting standards (Draft)" (hereinafter referred to as the "draft") to solicit opinions from the public. The draft mainly puts forward 17 requirements from the aspects of establishment principles, online training, facilities and equipment, charge management, training contents and plans. Among them, for offline culture and art training institutions, the exposure draft points out that the actual training area of offline training places of culture and art off campus training institutions (including training points) is generally not less than 100 square meters. Among them, the area of training room shall not be less than two-thirds of the total area of training place. When conducting online training business, culture and art off campus training institutions shall strictly implement the requirements of laws and regulations such as the network security law of the people's Republic of China and the data security law of the people's Republic of China, have their own or rented servers with reliable performance, and the servers must be set in China.
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 of enrollment not reaching the expected number: the weakening of terminal demand or the weakening of the enterprise's own advantages make enrollment difficult.
