The Zhitong Finance App learned that education stocks have declined collectively. As of press release, Si Le Education (01769) fell 5.9% to HK$2.71; China Education Holdings (00839) fell 4.69% to HK$4.47; Yuhua Education (06169) fell 3.92% to HK$0.49; and China Oriental Education (00667) fell 1.96% to HK$2.5.

Guoxin Securities pointed out that the Hong Kong stock private higher education sector is a high-shareholder circuit in the education industry, but recently the private higher education sector significantly outperformed the high-dividend sector by 6.59pct and did not benefit from this round of high-dividend market style. Mainly due to declining profitability and rising capital pressure due to increased investment in running schools, some higher education companies faced certain financial pressure in the short term, or affected dividend stability. In the medium term, progress in for-profit options has not progressed substantially.

The bank believes that under the requirements of running high-quality schools, higher education companies may still be under downward pressure, but the endogenous growth rate of higher education leaders is steady and dividend rates are impressive. The current valuation level is gradually becoming cost-effective. The promotion of classification registration in the future will provide positive sentiment support for the sector. It is recommended to focus on opportunities for sector valuations to recover.