In 2010, educational informatization has become a national strategy and an important part of national informatization construction. Since 2012, the state has focused on taking the "three links and two platforms" as the starting point to comprehensively promote the process of educational informatization. In April 2018, educational informationization entered the 2.0stage, with the goal of "three complete, two high and one big", continuously promote the deep integration of information technology and education, and put forward the construction of an integrated "Internet + education" platform.

Anxin Securities believes that the sustained growth of financial investment and the demand for C-end value-added services in education information will drive the development of the industry. From the B side, the national financial expenditure on education accounts for more than 4% of GDP for six consecutive years, and it is estimated that by 2020, the expenditure on education informatization will reach 386.3 billion yuan; from the C side, it is estimated that the potential market size of K12 education informatization will be 212 billion yuan by 2020.

Anxin Securities pointed out that according to the type of business, enterprises engaged in educational information business can be roughly divided into four categories, namely, hardware suppliers, system integrators, software product services and educational content providers. At present, among the A-share listed companies, most of the educational information enterprises are system integrators and software product service providers. In 2017, the total income of A-share education information business was about 10.679 billion yuan, compared with the B-end market demand of 273.1 billion yuan in 2017, accounting for less than 4%. The competition pattern is highly scattered, and there is no dominant situation.

Anxin Securities believes that the development trend of educational informatization is the application of big data, the platform, and the digitization of content:

① big data and artificial intelligence make it possible to teach students in accordance with their aptitude. At present, education has entered the DT era, and educational information enterprises with rich learning data and advanced technologies such as artificial intelligence will occupy the first-mover advantage.

② industry chain is vertically integrated to create a platform entrance. There is a trend of vertical integration between technical service providers and content providers in the educational information industry chain. Relying on the entrance of the educational cloud platform, the realization of C-end content can be accelerated.

③ high-quality content is still the core of the education industry, and the digitization of content opens the B2B2C market space. The educational products under the deep integration of education and information technology will return to the educational essence that users pay for service effectiveness, and offline high-quality educational resources can be transferred online.

Anxin Securities believes that the education information industry has a large number of market participants, the competition pattern is relatively scattered, the industry leader has not yet appeared, and the market concentration is expected to be further improved.Focus on educational informationization in the field of K12, and suggest paying attention to enterprises with high-quality educational content output at the same time.