New Oriental Education & Technology Group online's share price is still soaring.
As of today's close$New Oriental Education & Technology Group online (01797.HK) $It soared 72.71% to HK $28.6 per share, with a total market capitalization of HK $28.6 billion. Since it took off last Friday, it has risen by more than 500% in just five trading days, which can be called a rocket speed.
Stimulated by this, the Hong Kong stock education plate was detonated today. By the close of trading$Tianli Education (01773.HK) $涨105%，$thinking Education (01769.HK) $Increase by more than 40%$Guangzheng Education (06068.HK) $Up nearly 50%. In addition, the A-share education stocks, which are not willing to lag behind, are also collectively restless, with the plate rising 9.38%, almost closing at the daily limit.$Cod Education (300192.SZ) $、$universal education (300359.SZ) $、$Bean God Education (300010.SZ) $All harvest 20cm long legs.$Secondary Public Education (002607.SZ) $、$University Education (000526.SZ) $Wait for many stocks to rise by the daily limit.
No one thought that the education sector, which was hammered by tens of thousands of people last year, could also become popular.
On the news side, New Oriental Education & Technology Group, who has been silent for a long time after the "double reduction policy," set sail again with goods through the live broadcast. His "Oriental selection" live broadcast room was previously unknown, but it has been very popular in the head broadcast room in the past two weeks, igniting the rise of the education sector in a straight line.
Data show that the Dongfang selection Douyin GMV reached 108 million yuan from June 1 to 13, of which the GMV was 22.977 million yuan on June 13, with 372000 merchandise sales and 16.721 million daily viewers, a record high. As of June 15, the number of fans of "Oriental selection" had increased by 698.7w in nearly seven days, and the live broadcast sales reached 170 million yuan.
As for the circle of Oriental selection, CITIC believes that Oriental selection mainly adopts the live broadcast form of "class + selling goods", which explains the background knowledge related to goods or foreign language teaching while selling goods, which is quite different from the traditional live broadcast sales, which mainly focus on how easy to use the goods and how low the price is, and the live broadcast content is more experiential and innovative. Oriental selection is based on New Oriental Education & Technology Group's brand endorsement and has a certain brand awareness and user base.
In addition, under the disturbance of the recent epidemic in some parts of the country, consumers spend more time at home and have more time to watch live broadcasts. At the same time, during the period of 618, the suspension of individual head anchors also brought a certain amount of traffic spillover, and Oriental selection, as a live studio with positive value, well accepted this part of the traffic.
Feng Zhongguang, an analyst in CITIC's education industry, said that at present, Oriental selection is a very successful transformation and is expected to gradually become one of the important businesses of New Oriental Education & Technology Group online and New Oriental Education & Technology Group in the future. In fact, among the many education and training companies seeking transformation, New Oriental Education & Technology Group online is not the only one that has improved.
For example, based on its original advantages in teaching, research and technology, TAL Education Group explores into the field of technology and content service providers in addition to learning services; NetEase, Inc youdao develops rapidly in the fields of intelligent hardware, adult training and quality, and his business has formed a certain volume; Gaotu Techedu Inc. 's exploration in the field of adult education and literacy education is also gradually yielding results.
In addition to these giants, many other teaching and training companies are also doing well. For example, after the "double reduction", 17 Education & Technology Group began to transform his on-campus business, which is positioned as a SaaS software service provider around homework and other core teaching application scenarios.
However, in addition to the transformation of education and training, the recent rebound in the education industry is also inseparable from the support of other factors.
Recently, some higher education companies have announced that the number of students who will be promoted to this school in the 2022 / 23 academic year will increase by 70% and 158% compared with the same period last year. Combined with the new high number of applicants for the college entrance examination and stable employment background, the fundamentals of the industry have improved positively. At the same time, the repair of Chinese stocks and the gradual introduction of favorable policies in various places, such as (the implementation Plan for promoting the High-quality Development of Vocational Education released by Beijing on June 6) further catalysed industry sentiment and gradually dispelled the previous market pessimistic policy concerns about the plate, and the plate valuation ushered in a repair.
On the other hand, the number of Chinese college graduates in 2022 reached 10.76 million, an increase of 1.67 million over the same period last year, and the competition for employment is fierce. At the same time, the unemployment rate of urban research in China rose month by month from January to April this year, reaching 6.1% in April, the highest since February 2020. In the context of employment difficulties, the demand for vocational training-academic qualifications is expected to increase significantly, but due to the repeated impact of the epidemic in some areas, offline training enrollment and teaching are limited, and the performance of most vocational training companies is affected. With the promotion of resuming work and production after the epidemic, the business of vocational training companies is expected to be carried out in an orderly manner, and the performance is expected to recover quickly under strong demand.
CITIC pointed out that after the double reduction, the overall valuation of the education sector has dropped sharply, and the market also has pessimistic policy expectations for the non-K9 discipline education sector, while in fact, there are clear incentive policies in the field of vocational education. Recently, under the catalysis of various factors, the market worries about policies have been gradually eliminated, and the valuations of various sectors of education have been repaired.
Looking forward to the follow-up market, it is suggested to focus on the layout of three major sectors: 1) the Hong Kong stock higher education sector with high performance certainty, undervaluation and high dividend, with emphasis on secondary education holding, hope education, livelihood education, Neusoft education and China Xinhua education. It is suggested that we should pay attention to China's scientific training, New higher Education Group, Zhonghui Group and Jianqiao Education; 2) the marginal recovery of vocational training section, with emphasis on China Oriental Education and Intelligence Education 3) for the education and training transformation companies with obvious transformation effect and prominent cash value, youdao is recommended.