Zhitong Financial APP learned that the education sector was significantly weaker in early trading, with many stocks falling below the local lows of short-term adjustment in the second half of last year. Segment higher education stocks are relatively weak, some higher education stocks 22PE has fallen to less than 10 times. Institutions pointed out that the cautious expectations of mergers and acquisitions of higher education companies and market worries about industry price increases are the main reasons for the recent stock price adjustment. Earlier this month, Morgan Stanley cut the target price of education stocks by 10 per cent across the board. As of press time$Bridge Education (01525.HK) $Fell 10.32% to HK $4.17$Hope Education (01765.HK) $Fell 8.33% to HK $1.10$Chinese Education Holdings (00839.HK) $Fell 5.38% to HK $10.56$Yuhua Education (06169.HK) $Fell 4.50% to HK $2.12China Xinhua Education (02779.HK) $Fell 2.65% to HK $1.47China Oriental Education (00667.HK) $It fell 1.74% to HK $4.52.

In response to the recent downturn in higher education stocks, Huaxi Securities pointed out that it is mainly due to: 1) higher education companies are cautious about the expectations of mergers and acquisitions, part of the reason is that the valuation of the primary and secondary market is upside down; 2) most regions have not yet issued detailed rules for the selection of non-profit, and the market is worried about the policy risks of higher education stocks; 3) worries about future price increases and the ceiling of net interest rates.

At the beginning of this month, a month later, Morgan Stanley cut the price of Chinese education stocks by 10% across the board to reflect the uncertainty of the for-profit registration system.

Morgan Stanley pointed out that the profit outlook of educational institutions in fiscal year 2022 remained stable, with profit growth of about 14% to 30%. There was less M & An activity in the first half of the year, and the market was more worried about for-profit registration, but with the implementation of more supportive measures for formal vocational education, the industry may have a revaluation opportunity in the second half of the year.