China Chunlai (1969.HK) once surged over 22.6% intraday, reaching a high of 5.9 Hong Kong dollars, hitting a new high since February this year. On the news front, the "Opinions of the Central Committee of the Communist Party of China and the State Council on Implementing the Strategy of Employment First to Promote High-Quality and Full Employment" issued at the end of last month proposed accelerating the development of modern professional education, promoting the integration of vocational and general education, industry-education integration, and science-education integration, cultivating more high-quality technical talents; promoting high-quality and distinctive development of technical education, forming a batch of technical education alliances (groups), selecting and constructing a group of high-quality technical colleges and majors. Citic Securities stated that with the positive changes in the professional education industry, some top outstanding companies are expected to demonstrate strong growth potential.

Huaxi Securities recently released a research report stating that due to low valuation, there is great room for tuition fees and net margin improvement. It initiated coverage on China Chunlai for the first time, giving it a "buy" rating. The report pointed out that from the perspective of location and brand advantages, China Chunlai is strategically positioned in a province with a large source of students and has a strong brand reputation within the region; in terms of teaching and employment advantages, the group has a large and stable supply of faculty and students, as well as a comprehensive and rich curriculum quality. The schools under the group have excellent employment rates, and two schools have been approved to offer master's degrees, proving the level of teaching. In terms of taking over independent colleges, it promotes enrollment and performance improvement in the schools being taken over.