This week's view
On April 6, the general office of the Ministry of Education issued the notice on doing a good job in the proposition of 2022 middle school entrance examination (hereinafter referred to as the notice). According to the requirements of the notice, the proposition shall be made in strict accordance with the curriculum standard. All localities should conscientiously implement the requirements of the compulsory education curriculum standard proposition, resolutely cancel the junior middle school academic level examination outline or examination instructions, do not exceed the standard proposition and arbitrarily expand or reduce the scope of the examination content, and strictly prohibit the high school curriculum content, subject competition test questions and out of school training content as the examination content, so as to ensure the connection between the standard proposition and teaching and examination.
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 4.77pct
This week, CITIC education index rose 1.55%, while Shanghai index fell 0.94%, outperforming the market by 2.49pct. So far in 2022, the CITIC education index has fallen by 15.43% and the Shanghai index has fallen by 10.66%, underperforming the market by 4.77pct.
Industry news
Rex Education: received the notice from the listing qualification Department of Nasdaq stock market; Maple Leaf Education: a seven-year cooperation agreement was signed with Newcapec Electronics Co.Ltd(300248) on April 7. The two sides will cooperate to build a smart campus platform at Maple Leaf Education headquarters and its schools; LEGO Group and Epic Games: the two companies will reach a long-term partnership to create a future meta space that can bring safety and fun to children and families; Excellence education: 1 yuan. After the sale of Guangzhou excellence mileage Education Technology Co., Ltd., the company is expected to lose about 13 million yuan; Erwan Technology: announced that the brand was officially upgraded to quantum song.
Risk tips
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.
