HK Stock Market Move | YUHUA EDU (06169) falls more than 8%, one of its schools is approved to conduct for-profit private school classification registration, the company says uncertainty is high.

YUHUA EDU (06169) fell by more than 8% after opening high this morning. As of the time of publication, it is down by 8.22%, trading at 0.67 Hong Kong dollars with a trading volume of 19.1933 million Hong Kong dollars. On the news front, on the evening of September 14, YUHUA EDU announced a clarification regarding rumors circulating online about its subsidiary, Hunan Institute of International Economics. The announcement stated that the institute has recently obtained approval from relevant government authorities to conduct classified registration of for-profit private schools. Additionally, it emphasized that this approval does not mean the school has successfully registered as a for-profit school, as the school is gradually carrying out the necessary work in accordance with regulatory requirements, a process which is complex, time-consuming, and uncertain, making it difficult to guarantee or control the time required. Zheshang believes that the recent market expectations for the progress of for-profit registration procedures will improve, easing concerns about dividends and overseas debt repayment capabilities. However, whether the profitability and dividend payout capability of the sector and individual stocks can stabilize and increase, and whether there is sufficient funding for dividends, leading to more stable dividend yield expectations, may be key factors in the valuation repair elasticity and sustainability of the sector/individual stocks as they enter a period of stable development.