HK Stock Market Move | Some education stocks continue to rise, private higher education selection camps make progress again, institutions say the sector is expected to see significant valuation repair.

Some education stocks collectively rose, as of the time of writing, CHINA EDU GROUP (00839) rose by 3.43% to HK$3.62; GENCH EDU (01525) rose by 1.91% to HK$3.20; CHINA EAST EDU (00667) rose by 1.89% to HK$7.53; XJ INTL HLDGS (01765) rose by 0.92% to HK$0.22. On the news front, YUHUA EDU's Hunan Sino-Foreign Economica College's selection camp was approved. Cinda pointed out that the last peak of the selection camp progress was in October 22, when the results of the selection camps of private universities in Heilongjiang were implemented, Harbin Hua De College under NEW HIGHER EDU and Harbin Petroleum College under CHINA KEPEI successfully converted to for-profit private schools. The approval of the selection camp for the Hunan Sino-Foreign Economica College may become a model for other provinces to refer to, and progress in private higher education selection camps in various regions is expected to be promoted. The bank pointed out that the higher education sector may see a valuation recovery. The stagnation of the selection camp progress has always been one of the factors suppressing the valuation of the private higher education sector. Although the approval of the selection camp for the Hunan Sino-Foreign Economica College is only a phase in the conversion to for-profit, it is a bright spot after three years of stagnation. With the private higher education sector generally trading at a PE ratio of 3-6x, significant valuation recovery is expected. It is recommended to pay attention to investment opportunities brought about by the valuation recovery of the private higher education sector, such as CHINA EDU GROUP.