Guolian Minsheng Securities: The education sector is expected to usher in a "double click" of performance and valuation. "AI + education" is the main investment theme in the industry.

Guolian Minsheng Securities released a research report stating that the education industry is expected to experience a "three-dimensional resonance" of policy marginal improvement, industry supply clearance, and industry demand release. The industry investment logic has shifted from policy-driven to performance-driven, and industry valuations are relatively low. With policy support, it is expected to see a "double-click" on performance and valuation. At the same time, the education industry is an important application scenario for AI, and "AI + education" is the main investment theme in the industry. Leading education companies are expected to benefit from the development of "AI + education". The main points of Guolian Minsheng Securities are as follows: High-quality development and "investment in people" On March 13, the "Outline of the 15th Five-Year Plan for National Economic and Social Development of the People's Republic of China" was officially released. The "Outline" puts "achieving significant results in high-quality development" as the main goal for the 15th Five-Year Plan period, covering economic development, innovation, people's well-being, green development, and security. Among the 20 main indicators of economic and social development in the "15th Five-Year Plan" listed in the outline, indicators related to people's well-being have the highest proportion, highlighting the new concept of "investment in people" in China's economic transformation. Increasing investment in people, promoting the accumulation of human capital, and forming a "human capital dividend" are strategic measures for China to take the initiative and achieve high-quality development in the new round of technological revolution and industrial transformation. Promote the development of educational technology talents and improve education equity and quality During the 15th Five-Year Plan period, the educational planning guidance has been upgraded from "building a high-quality education system" to "promoting the development of educational technology talents" and "running education that satisfies the people". The emphasis on "promoting the development of educational technology talents" highlights the integration of "education, technology, and talents", emphasizing the establishment of a unified coordination mechanism to better promote the deep integration of technological innovation and industrial innovation. The firm believes that this indicates that education is no longer just a livelihood issue but also a source of technological innovation and a base for talent cultivation. The key to building a strong education country is to run education that satisfies the people. During the 15th Five-Year Plan period, efforts will continue to be made to promote education equity and quality improvement, clearly defining the construction of a strong education nation as a strategic project for the high-quality development of the population. Digitalization and AI empower the education industry During the 15th Five-Year Plan period, efforts will be made to deepen the construction of Digital China and comprehensively promote the empowerment of digital intelligent technology. Fully leveraging the role of digital intelligent technology and data elements in enriching people's lives and improving their well-being, expanding the fusion application in the fields of education, healthcare, elderly care, cultural tourism, employment, and consumption. The "AI +" action related to education specifically mentions the need to innovate intelligent learning companions, intelligent teachers, and other teaching models, deepen the application of precise teaching, personalized learning, and intelligent tutoring, among others. Education benefits the people and collaboratively builds a fertility-friendly society For the first time, the "15th Five-Year Plan" outline deploys education together with the construction of a fertility-friendly society, speeding up the construction of a healthy China, and actively coping with aging populations. It requires the improvement of education resource allocation mechanisms that are responsive to demographic changes. During the 15th Five-Year Plan period, silver-haired economy will be seen as a new economic growth point, enriching elderly care services and consumption supply in areas such as elderly products industry, pension financial products, elderly tourism, education, culture, and new formats. Risk Warning: Risks include changes in industry policies, intensified industry competition, lower-than-expected enrollment, and slow release of performance, among others.