According to the Zhitong Finance APP, education stocks have collectively declined. As of press time, Thinker Education (01769) fell 5.9% to HKD 2.71; Zhongjiao Holdings (00839) fell 4.69% to HKD 4.47; Yuhua Education (06169) fell 3.92% to HKD 0.49; China Eastern Education (00667) fell 1.96% to HKD 2.5.

Guosen Securities pointed out that Hong Kong private higher education is a high dividend sub track in the education industry, but recently the private higher education sector has significantly underperformed the high dividend sector by 6.59 pct, and has not benefited from the high dividend market style of this round. This is mainly due to the increase in investment in education, which has led to a decline in profitability and an increase in financial pressure. Some higher education companies are facing certain short-term financial pressure, which may affect the stability of dividends. In the medium term, the progress of for-profit choices has not yet made substantial progress.

The bank believes that under the requirements of high-quality education, higher education companies may still face downward pressure in their short-term operations. However, the internal growth rate of higher education leaders is stable and the dividend yield is considerable. The current valuation level is gradually becoming cost-effective, and the implementation of classification registration in the future will provide positive emotional support for the sector. It is recommended to pay attention to opportunities for sector valuation recovery.