This week's view
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.
On March 5, the fifth session of the 13th National People's Congress opened at the Great Hall of the people in Beijing. Premier Li Keqiang delivered a government work report.
Turning to the focus of work in 2022, Li Keqiang said: (1) focus on stabilizing market players, ensuring employment and strengthening the implementation of macro policies. Promote the equity and quality of education, and implement the fundamental task of Building Morality and cultivating people. (2) We will promote the high-quality and balanced development of compulsory education and urban-rural integration, allocate educational resources according to the size of the permanent population, and ensure that school-age children attend school nearby. (3) We will fully implement the salary treatment of compulsory education teachers, and strengthen the targeted training, on-the-job training and treatment guarantee of rural teachers. (4) We will continue to do a good job in reducing the burden of compulsory education. Increase inclusive preschool education resources through multiple channels. Strengthen the construction of county ordinary high schools. Run special education and continuing education well, and standardize the development of private education. Improve the popularity and quality of the national common language. (5) Improve the school running conditions of vocational education and improve the school running system integrating industry and education. We will promote the connotative development of higher education, build first-class universities and first-class disciplines by category, accelerate the training of scarce talents in science, industry, agriculture and medicine, and support the development of higher education in the central and western regions. College enrollment will continue to increase its preference for the central and western regions and rural areas. We will improve the mechanism of school, family and social collaborative education.
Market review: underperforming Shanghai Composite Index 5.56pct
This week, CITIC education index fell 9.56%, while Shanghai index fell 4.00%, underperforming the market by 5.56pct So far in 2022, the CITIC education index has fallen by 9.39% and the Shanghai index has fallen by 9.07%, underperforming the market by 0.32pct.
Industry news
In December 2021, Doushen(Beijing) Education&Technology Inc(300010) officially reached an agreement with CCTV middle school student channel to output high-quality learning contents of youth literature and history to CCTV middle school student channel. Before that, Doushen(Beijing) Education&Technology Inc(300010) also cooperated with iqiyi, Beijing Gehua Catv Network Co.Ltd(600037) , blockbuster and other platforms.
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.
