Cinda Securities released a research report saying that the K12 industry has a broad market space. Among them, demand for non-subject training is strong, participation rates have increased dramatically, and the market is expected to grow at an accelerated pace to meet the demand for subject education and training. However, the market pattern is very scattered, and concentration is expected to increase after the supply-side experience is greatly cleared. Furthermore, the policy is expected to further clarify the future development path, reduce market concerns about the development prospects of the industry, and raise sector valuations. It is recommended to focus on Good Future (TAL.US), New Oriental-S (09901.HK), University Education (000526.SZ), Onli Education (600661.SH), Excellent Education Group (03978.HK), Thinking Music Education (01769.HK), and Code Education (300192.SZ).