Recently, the Ministry of Education issued a notice on vocational courses, which attracted widespread attention from the market. This news has driven up the stock prices of some education stocks.

As of press release,$NEW ORIENTAL-S (09901.HK)$,$JH EDUCATION (01935.HK)$An increase of more than 5%,$GINGKO EDU (01851.HK)$An increase of nearly 3%,$YUHUA EDU (06169.HK)$An increase of over 1%.

China's Ministry of Education issued a notice on January 3 that it will select around 1,000 national online quality courses for vocational education to promote the development and open sharing of high-quality digital resources for vocational education. The application courses are courses included in training programs for professionals related to secondary vocational education and higher vocational education (including higher vocational colleges and undergraduate vocational colleges) and are actually offered in teaching, including public basic courses, professional (skills) courses (including practical internships), etc.

According to information, the recommended courses should be connected to the National Vocational Education Smart Education Platform, promise to provide teaching services for no less than 5 years, and dynamically update teaching resources.

The Ministry of Education's selection of quality courses has three major impacts on education and training companies

First, to enhance the competitiveness of the industry. The selection standards for quality online courses in the country are high, requiring scientific standardization of course content, reasonable teaching design, and good teaching results. If education and training companies are successfully selected, it will help enhance their competitiveness in the industry and increase their market share.

Second, expand the business field. National online quality courses will be connected to the National Vocational Education Smart Education Platform and shared with vocational colleges and universities across the country. If the education and training company is successfully selected, it will help it expand its business field and enter the vocational education market.

Ultimately, this will increase brand influence. The selection of national online quality courses is highly authoritative. If education and training companies are successfully selected, it will help enhance their brand influence and enhance their competitive advantage.

Which education and training companies are expected to benefit?

$NEW HIGHER EDU (02001.HK)$It is one of the largest private higher education groups in China. It has many institutions of higher learning and provides academic education courses for vocational education;

$HOPE EDU (01765.HK)$It is a leading vocational education group in China. It has rich vocational education resources and experience, and provides various professional courses for vocational education;

$CHINA EDU GROUP (00839.HK)$It is one of the largest private higher education institutions in China. It has many institutions of higher learning and provides academic education courses for vocational education;

$CHINA KEPEI (01890.HK)$It is one of the largest vocational education groups in China. It has rich vocational education resources and experience, and provides various professional courses for vocational education.

Tianli International Holdings is an education company headquartered in Chengdu. Its business scope covers K12 education, kindergarten education, education and training.

Yuhua Education is a private academic education group. Its business includes higher education, basic education, and preschool education. Currently, Yuhua Education has 4 undergraduate universities, 1 college, and more than 20 primary and secondary schools and kindergartens.

How do institutions view current education stocks?

Although education stocks were previously affected by the double reduction policy, many favorable announcements will now bring new development opportunities and growth impetus to the industry.

GF Securities believes that the education sector's performance and valuation recovery trend is expected to continue. Since this year, the education industry's immediate demand attributes have been obvious. After external influencing factors were lifted, business resumed rapidly, and at the same time, steady improvement in policy sentiment supported the restoration of valuation to a reasonable center.

Guoxin Securities said that the clear supply side brought about by the policy, the results achieved in the transformation of literacy training, and a clear regulatory attitude are the three major changes in the K12 education and training circuit. Looking ahead, its analysis suggests that demand for racetracks is strong, and the lack of quality content supply is expected to continue, and leading companies are expected to continue to benefit.

Editor/Corrine