On the afternoon of February 14, Hong Kong education stocks expanded. As of press time, the Hong Kong Education Index is **201%；Hong Kong's Education Index is 445%。Excellence Education Group, which is also a constituent stock of the two indexes**793%；Oriental Selection**557%。
In addition, Thinkle Education rose by 1008%, Maple Leaf Education**82%, Xijiao International Holdings rose 333%, New Oriental rose 251%。
On the news side, on February 8, the Ministry of Education issued an announcement on the "Regulations on the Administration of Off-campus Training (Draft for Comments)" for public comment. The deadline for comments is March 8, 2024.
The term "extracurricular training" as used in the Regulations refers to organized or systematic education and training activities carried out outside the school education system for the public, targeting primary and secondary school students and preschool children between the ages of 3 and 6, with the main purpose of improving academic standards or cultivating interests and specialties. There are a total of 20 articles in the Draft for Comments.
Among them, the Draft for Comments clarifies that to carry out off-campus training activities, the corresponding off-campus training license shall be obtained in accordance with the law, and the requirements for legal persons shall be met. Academic extracurricular training institutions for the compulsory education stage shall be registered as non-profit legal persons.
The Draft encourages and supports all kinds of off-campus venues (institutes) such as children's palaces, science and technology museums, and museums to carry out off-campus training, enrich the curriculum, expand the number of enrollments, and meet reasonable needs for off-campus training.
A number of brokerage research reports believe that education service providers have explored quality literacy training after the "double reduction", and their profitability has continued to recover.
Taking South China's head education service provider Scholar as an example, Tianfeng ** believes that more than ninety percent of the company's current income comes from quality literacy training courses.
According to the estimation of the Multi-Whale Education Research Institute, the potential market size of domestic quality education will exceed 478.7 billion yuan in 2023, and the proportion of parents' investment in training courses will remain unchanged and increase by 85% after the "double reduction", and the training demand is still relatively strong.
Guosheng** believes that after the introduction of New Oriental's "double reduction" policy in 2021, the company will divest its K9 discipline business in a timely manner, and actively transform to new businesses such as non-disciplinary education and training, smart education services, live broadcast e-commerce, and cultural tourism. After the transformation and adjustment, the traditional education and training business gradually recovered + the new business increased rapidly, and the performance entered the track of rapid recovery.
*: The Paper.