Excellence Education Group (03978) rose more than 6% in the intraday period. As of press release, it was up 5.02% to HK$2.93, with a turnover of HK$5.3075 million.
The Zhitong Finance App learned that Excellent Education Group (03978) rose more than 6% in the intraday period. As of press release, it had risen 5.02% to HK$2.93, with a turnover of HK$5.3075 million.
Fangzheng Securities pointed out that there have been many changes in the K12 industry under the influence of the policy. The trend of compliance with off-campus training has not changed; K9 subject training regulations have been steadily tightened, high school/non-subject business policies have been relaxed, and management boundaries have become more clear; college entrance examination reform is in full swing, and subject selection has become the focus of attention. The size of the K12 education and training market has declined sharply due to policy shocks. Demand for subject/interest training is still strong, and the potential of the non-subject market is gradually showing. The supply of subject education and training has been cleared, institutional business has been transformed, offline outlets have been reduced, and regional institutions have a considerable share of the local market.
The bank pointed out that the company has a good reputation in South China and has accumulated brand, teaching and research, and channel advantages. In recent years, it has shifted its business focus to “full-time review+quality education+vocational education” to promote the rapid development of full-time schools, lay out quality education in all aspects, and actively cooperate with vocational colleges and universities. The company's talent training system is perfect, and the teacher retention rate far exceeds the industry average; during the pandemic, it quickly switched to online teaching, showing efficient operation capabilities. Currently, the company is speeding up the promotion of the full-time, quality education sector, developing new campuses in Guangdong Province, and is optimistic about future development potential.