1. China Education Holdings: The leader of higher education in Hong Kong stocks, the growth of the strong Hengqiang.
Development history: Deeply cultivated in private education for 30 years, high-quality mergers and acquisitions after listing to create the largest higher education group. Founded in 1999 and listed on the Hong Kong Stock Exchange in 2017, the company's main business is to provide higher education and vocational education services, and currently operates a total of 12 domestic schools (newly acquired Sichuan Jincheng University), 2 foreign schools, and more than 280,000 students (assuming that Sichuan Jincheng University is consolidated), making it the largest listed company in higher education and vocational education. Before the company went public, it had Jiangxi Institute of Science and Technology, Guangdong Baiyun University and Baiyun Technician College, three private schools with strong competitiveness in China, accelerated the integration of mergers and acquisitions after listing, 18 19 20 acquired 4 3 3 schools, the company's excellent target screening ability and post-merger integration ability was recognized by the market, and the leading position of higher education was established.
M&A integration: Successfully acquired Jincheng College of Sichuan University, the No. 1 private independent college, and once again verified its M&A integration capabilities. Two years ago, the company completed the acquisition of Guangzhou Institute of Applied Science and Technology and Songtian Vocational College in the Greater Bay Area, and is the only listed company to complete the acquisition of private schools in the Greater Bay Area. The company's M&A integration capabilities have been fully verified and highly recognized by the market, and are expected to further accelerate the integration of the industry.
Endogenous growth: The top four populous provinces all have layouts, and there is ample room for both volume and price increases. The company has completed the layout of schools in Guangdong, Shandong, Henan and Sichuan, the top four populous provinces in China, and the higher education resources in these provinces are relatively scarce. Among them, 4 schools have been laid out in Guangdong, and Guangdong, as the province with the fastest population and economic growth, is the key market for the company's future development. The company has a school in Shandong and Henan, and the merger and acquisition of Jincheng College of Sichuan University has made the company the first group to successfully acquire Sichuan University. Jiangxi Institute of Science and Technology, a university founded by the company, has ranked first among private universities in the rankings for many years, and Guangzhou Baiyun University has been in the forefront of private schools in Guangdong Province all year round.
Performance-driven:"Endogenous"+"Epitaxy"+"International layout", the growth idea is clear. There are three main driving factors for the company's future performance growth: 1) First, endogenous, the company aims at the expansion of the Guangdong-Hong Kong-Macao Greater Bay Area private higher education space, and the second phase of Guangdong Baiyun University is under construction, which will be completed in the summer of 2021 and can accommodate 18,000 students;The first phase of the expansion of Guangzhou Institute of Applied Science and Technology was completed in the fall of 2021 and can accommodate 14,000 studentsThere is room for increase in the number of places and tuition fees at each school. 2) The second is mergers and acquisitions, the company has acquired about three schools every year since its listing, maintaining a 100% success rate, raising sufficient funds through placement in February, the group has cash in hand of 5.1 billion yuan, and has 7 key projects in hand. 3) The third is to accelerate the layout of international education, since the company's acquisition of King's College and cooperation with the University of Richmond, the growth rate of international business revenue, the company's launch of dual degree professional courses is expected to attract more domestic and foreign students to enroll.
2. Hope Education: Deeply cultivate the southwest and radiate the whole country, and the endogenous extension space is broad.
Development History:"Self-built"+"Mergers and acquisitions"Two-wheel drive, China's second largest private higher education group. Founded in October 2007, in 2009 in Sichuan founded Southwest Jiaotong University Hope College, up to now, the company has 20 colleges, including 9 undergraduate, 9 higher vocational, 2 technician schools, 9 schools in Sichuan Province. The pace of growth of the company is:"Self-built"+"Mergers and acquisitions"Before the listing, Sichuan Hope Automobile Technician College, Guizhou Applied Vocational and Technical College, etc., accelerated the pace of mergers and acquisitions after listing on the Stock Exchange in 18 years, and acquired 4 3 4 schools in 19 20 21. In 2021, the company successively acquired Nanchang Film and Television Communication Vocational College, Gongqing College of Nanchang University, Nanjing Jinken Vocational and Technical College, and Shinawatra University in Thailand.
M&A integration: Aiming at cost-effective schools, we have rich experience in M&A integration. Since 2011, the company has started mergers and acquisitions in the industry, and completed the industry's first mergers and acquisitions, and has completed more than 10 mergers and acquisitions projects of domestic and foreign schools since its listing, with rich experience in mergers and acquisitions. Unlike China Education Holdings, which mostly selects large schools and schools with higher school-running strength as targets, it is hoped that schools with greater development potential and space and higher cost performance will be selected as the targets, and the target students, tuition fees, net profits and other indicators will be significantly improved through mergers and acquisitions.
Click to view the research report of China Research Institute of Puhua Industry "2023-2028 China Private Vocational Education Industry Market In-depth Panoramic Research and Investment Prospect Analysis Report".
Endogenous growth: Many institutions are located in areas with low gross enrollment ratios in higher education, and the pricing power of tuition fees is gradually liberalized, and there is a lot of room for endogenous growth. At present, 6 of the 20 schools are located in Sichuan, 4 in Guizhou, two each in Jiangsu and Jiangxi, and one each in Henan, Ningxia, Shanxi and Inner Mongolia. The gross enrollment rate of higher education in the layout of the company's schools has great room for improvement, of which the gross enrollment rate of higher education in Sichuan is 48%, the gross enrollment rate of higher education in Guizhou is 38%, and the gross enrollment rate of higher education in Inner Mongolia is only 40%, and there is a large room for growth in future places. **In terms of the company's key layout of private universities in Sichuan, Guizhou and other provinces, the independent pricing power has been liberalized one after another, and there is a large room for price increase in tuition fees.
Performance-driven: endogenous + mergers and acquisitions + multi-business, broad development space. 1) First, endogenous, the company is currently building ** Hope Vocational and Technical College, Xingtai Vocational College of Applied Technology, Chongqing Digital Industry Vocational and Technical College, Jiangxi Zhangshu Vocational College of Traditional Chinese Medicine, ** Hope Vocational and Technical College and Xingtai Vocational College of Applied Technology will enroll students in the summer of 2021, the former plans to enroll 1,500 people, and the latter can accommodate 8,000 students after completion;The transfer of independent colleges and the liberalization of tuition pricing power will bring about a larger tuition fee. 2) The second is mergers and acquisitions, the company has completed the merger and acquisition of 4 universities in 21 years, the company is backed by Hope Group, and completed financing of 600 million US dollars in March 21, with strong financing strength, and it is expected that the integration of mergers and acquisitions will be accelerated. 3) The third is the multi-business layout, the company has a layout of international schools, and also tries to build a second-level professional operation with colleges and universities through the acquisition of Century Dingli, and expands with an asset-light model.
3. China Kepei: The scale effect is significant, and it has entered a rapid growth channel.
Development History: A leading private higher education provider in South China, entering a rapid growth channel. Founded in 2000, the company owned Guangdong Institute of Technology and Zhaoqing Science and Technology Secondary Vocational School before listing, and completed the acquisition of three schools after listing. In the 2020 and 2021 school years, the number of students enrolled reached 9260,000 people, YOY+60%, the company's management has more than 30 years of experience in the education industry, the founder and CEO Mr. Ye Nianqiao is one of the founders of China's private education industry, and Dr. Zhang Xiangwei, executive director and chief operating officer and president of Guangdong Institute of Technology, has served as vice president of Chongqing University, president of Shantou University and Guangdong University of Technology.
M&A integration: The company accelerated the pace of M&A integration. Since its listing, the company has completed the acquisition of three schools, including Harbin University, Huaibei Institute of Technology and Ma'anshan University. In March 2021, the company announced the acquisition of Huaibei University (renamed Huaibei Institute of Technology), and was approved by the Ministry of Education to be converted to the private school level. On July 15, 2021, the company announced the acquisition of Ma'anshan University, formerly known as the School of Industry and Business of Anhui University of Technology.
Endogenous growth: Stuck in Guangdong, accelerate the layout of the college entrance examination province where higher education resources are scarce. The company's original schools, Guangdong Institute of Technology and Zhaoqing Secondary Vocational College, are deeply involved in the Pearl River Delta region, with a large number of college entrance examinations, relatively scarce higher education resources, and relatively developed economy and strong payment ability. The company's recent acquisition of Ma'anshan University and Huaibei Institute of Technology is located in Anhui Province, Anhui Province is one of the major provinces for the college entrance examination, with more than 500,000 college entrance examination students, ranking among the top in the country, and the higher education resources are relatively tight, and the enrollment scale is expected to have room for improvement. AI assistant creation season
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