Key investment points:
Event: the Standing Committee of the 13th National People’s Congress voted to pass the newly revised vocational education law, which will come into force on May 1, 2022. This is also the first revision of the vocational education law in nearly 26 years. The main contents are as follows:
Clarify the connotation, orientation and development principles of vocational education, and improve the organization and management mechanism. The new law makes it clear that “vocational education is an education type with the same important status as general education”, including “vocational school education and vocational education and training”. In terms of development principle, it still runs through the diversion thought after the junior middle school stage, and puts forward that “in different stages after compulsory education, adjust measures to local conditions and promote the coordinated development of vocational education and general education; integrate with general education and effectively connect vocational education at different levels”. In terms of the organizing mechanism, adhere to “the government’s overall management, promote diversified school running, and support the wide participation of social forces”; In terms of management system, we still implement “government overall planning, hierarchical management, local focus, industry guidance, school enterprise cooperation and social participation”.
Clarify the framework of modern vocational education system and improve the support system of industry education integration. Open up the educational development channels of vocational schools, including vocational colleges and universities at the junior college and undergraduate levels, promote the continuous training of secondary and higher vocational colleges, and practice the flexible school system; Strengthen the vocational enlightenment in the stage of compulsory education. In addition, focusing on the integration of industry and education and the cooperation between schools and enterprises, we should solve the problems of “one head fever” of vocational schools and insufficient participation enthusiasm of industrial enterprises in the past, strengthen the school running conditions of enterprises and clarify preferential policies, For example, “enterprises can use capital, technology, knowledge, facilities, equipment, site, management and other elements to set up or jointly set up vocational schools and vocational training institutions; for qualified enterprises identified as industry education integration enterprises, financial, financial, land and other support shall be given according to regulations, and education surcharges, local education surcharges and other tax concessions shall be implemented”.
Increase investment in running schools and promote the high-quality development of vocational education. The new law mentions that “the income from school enterprise cooperation, provision of social services or the establishment of enterprises and business activities for the purpose of internship and training is used to improve school running conditions; a certain proportion of the income can be used to pay the labor remuneration of teachers, enterprise experts, external employees and educatees, and can also be used as a source of performance-based salary. If it meets the national regulations, it can not be limited by the total amount of performance-based salary”, We believe that it is mainly to improve the phenomenon of indiscriminate charging for students’ internship in vocational schools in the past and improve the sense of good experience of vocational education. At the same time, the regulations for the implementation of the people’s promotion law in May 2021 mentioned that “the development fund shall be withdrawn at a proportion of no less than 10% of the annual increase in unrestricted net assets or net income for the development of the school”. It can be seen that increasing investment in running schools and improving the high-quality running level of private schools have become the main demands of follow-up policies.
Investment suggestion: maintain the rating of “synchronous market” in the industry. The revision of the new vocational education law emphasizes the coordinated development of vocational education and general education, once again reflects the state’s affirmation of the important status of vocational education and the trend of encouragement and support for vocational education, and constitutes a favorable policy level for vocational school education and vocational education and training. It is suggested to pay attention to the vocational education and training sector of a shares, such as Jiangsu Chuanzhiboke Education Technology Co.Ltd(003032) , Shanghai Action Education Technology Co.Ltd(605098) (both are not covered temporarily).
Risk tips: policy and regulatory changes; M & a competition intensifies; The number of participants was lower than expected.
