This week's view
The 113th chairman's meeting of the Standing Committee of the 13th National People's Congress was held at the Great Hall of the people in Beijing on the morning of the 21st, Xinhua reported. Chairman Li Zhanshu presided over the meeting. The meeting heard a report made by Li Fei, chairman of the constitutional and legal committee, on the revision of the main issues of the revised draft of the vocational education law. According to Xinhua news agency, the vocational education law will stipulate: (1) support social forces to set up vocational schools and promote diversified schools; (2) Expand the autonomy of vocational schools, promote the integration of industry and education and school enterprise cooperation; (3) Create a social atmosphere to promote the development of vocational education; (4) Guide enterprises to set up apprenticeship posts according to a certain proportion of the total number of posts.
According to Xinhua news agency, on February 23, the Ministry of Education held a press conference to introduce the work related to promoting the high-quality development of modern vocational education. Chen Ziji, director of the Department of vocational education and adult education of the Ministry of education, introduced that "vocational education college entrance examination" will become the main channel of Higher Vocational enrollment.
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: underperforming Shanghai Composite Index 3.82pct
This week, CITIC education index fell 5.01% and Shanghai index fell 1.19%, underperforming the market by 3.82pct. So far in 2022, the CITIC education index has fallen by 18.01% and the Shanghai index has fallen by 11.75%, underperforming the market by 6.26pct.
Industry news
New Oriental officially announced that the first nursery center officially landed in Wuhan and will open in the second half of the year. Changping New Oriental bilingual school will close its primary and junior middle schools in the autumn of 2022 Offcn Education Technology Co.Ltd(002607) and Linyi finance and trade school have signed a strategic agreement on school enterprise cooperation. The two sides will sign a contract to jointly build five majors: artificial intelligence technology application, live e-commerce service, software and information service, so as to jointly cultivate compound and applied high-quality technical talents.
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.
