Hong Kong Stock Concept Tracking | DeepSeek significantly reduces costs AI education transformation imminent (with concept stocks)

ChatGpt Generates artificial intelligence to open a new era of AI, achieving good question and answer interactivity, multimodal understanding, and multi-type content generation on a larger scale. Released in January 2025, DeepSeek has low cost, open source, and reasoning capabilities, which will improve the accuracy of AI education, promote deep thinking, and save training costs. The realization of heuristic teaching with AI will become possible. The education transformation brought by large models will bring about a new round of changes in AI education. China Securities Co., Ltd. forecasts an acceleration in the emergence of native apps for education in the era of large models. Commercial scenarios of AI education include: 1) Intelligent education hardware powered by large models, integrating question and answer, assistance, and teaching scenarios, with the potential to replace tutoring teachers (answering questions, grading, evaluations, practice processes) and some teaching teachers (teaching knowledge points, learning processes). In the post-"double reduction" era, the sales volume of all-channel learning machines (including learning and practice machines) in 2024 exceeded 6 million units with a growth rate of +25.5% (online accounting for over 90%), accounting for approximately 3% of K12 school population. Assuming a future penetration rate of over 30%, this would correspond to over 50 million units. With AI, learning/practice machines are expected to transform the industry from level 1 to level 10. 2) AI education software applications for specific educational scenarios, such as language learning and question answering. 3) B-end application scenarios to further enhance teachers' work efficiency. According to a research report by Guosheng Securities, the current trend of the education and training industry is good, with the age-appropriate population still at a high level, and the industry outlook is expected to be maintained. The policy environment is shifting towards a positive direction, with a clear and positive regulatory attitude. AI is leading the transformation of education, and the domestic commercialization process is expected to accelerate. The post-"double reduction" industry competition pattern is optimized, and the effectiveness of non-subject professional transformation is validated. K12 education and training companies continue to grow in production capacity and profitability. The industry is optimistic about compliant operations and leading growth potential in education, research, faculty, and brand strength, and recommends continuous attention to opportunities in the education sector. Leading AI education companies listed on the Hong Kong Stock Exchange: NEW ORIENTAL-S (09901): New Oriental's layout in the field of AI education is not limited to traditional subject tutoring, but also expands into areas such as quality education and intelligent hardware. For example, it has invested in art, sports training institutions, and self-developed offline courses and services such as programming, Siasun Robot & Automation, and research study tours. In addition, New Oriental has launched an intelligent learning system and device business to meet the market's demand for diversified education. FENBI (02469): FENBI is a leading company in the public exam training field with significant AI education layout. In July 2024, FENBI launched a domain-specific large model focused on the public exam field and introduced FENBI AI teacher to help users better understand the competitiveness of the positions they are applying for. Furthermore, FENBI also launched a high-quality interview AI evaluation product, the industry's first AI tool for interviews in the public exam industry. With the continuous growth of national exam registration numbers, FENBI's AI education products are expected to further increase their market share. NETDRAGON (00777): NETDRAGON is a leading company in the global education market, with its education business covering over 190 countries and regions with more than 150 million users. The company is fully committed to the AI+ education field, completing the overseas education business spin-off listing in December 2024, renamed as "Mynd.ai" (securities code: MYND), aiming to accelerate the application of AI technology in the education sector. Additionally, NETDRAGON's SaaS products are expected to be the first to land in the European and American markets, further expanding its global market share.