This week's view
According to the data of China Education Press, the government work reports of 31 provinces in the two sessions mentioned the development of vocational education or the construction of Vocational Colleges when deploying the education work in 2022, and vocational education continued to be the key work of education in all provinces and cities.
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 0.91pct
This week, CITIC education index rose 0.80%, while Shanghai index fell 0.11%, outperforming the market by 0.91pct. So far in 2022, the CITIC education index has risen by 0.18%, while the Shanghai index has fallen by 5.28%, outperforming the market by 5.46pct.
Industry news
On March 1, the Ministry of Education released the main results of national education statistics in 2021. According to the data, there are 529300 schools at all levels, 291 million students, 184437 million full-time teachers and an average of 10.9 years of education for the working age population. In 2021, there were 207200 schools in compulsory education stage in China. There are 158 million students in school. There are 105719 million full-time teachers. The consolidation rate of nine-year compulsory education was 95.4%. In 2021, there were 3012 colleges and universities in China, including 1238 ordinary undergraduate schools; 32 Vocational Schools at undergraduate level; 1486 higher vocational (College) schools; There are 256 adult colleges and universities. The total number of students in various forms of higher education is 44.3 million, and the gross enrollment rate of higher education is 57.8%.
Recently, the central network information office, the Ministry of education, the Ministry of industry and information technology and the Ministry of human resources and Social Security jointly issued the key points for improving the digital literacy and skills of the whole people in 2022, which proposed that: (1) by the end of 2022, positive progress will be made in improving the digital literacy and skills of the whole people, and the work pattern of systematic promotion will be basically established. (2) The supply of digital resources has been enriched, the national lifelong digital learning system has been preliminarily established, the digital work ability of workers has been accelerated, the digital living standard of the people has been continuously improved, the vitality of digital innovation has burst out, the digital security protection barrier has been strengthened, the legal and moral level of digital society has been continuously improved, and the development environment of digital literacy and skills of the people has been continuously optimized. (3) The number of "excellent courses in basic education" resources, e-commerce training, aging and barrier free transformation of key websites and mobile applications and other 8 main indicators were added.
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.
