HK Stock Price Fluctuated | SCHOLAR EDU (01769) rises more than 7% during trading hours. As policies gradually become clear and supply recovery is slow, leading companies in compliance are expected to continue to benefit.

SCHOLAR EDU (01769) rose more than 7% intraday, rising 3.73% as of the time of writing, to 4.45 Hong Kong dollars, with a turnover of 29.39 million Hong Kong dollars. On the news front, SCHOLAR EDU is set to release its performance on March 28. The company had previously announced a profit forecast, expecting a net profit for the year 2023 of no less than 80 million RMB, an increase of at least 47% compared to the previous year; and an adjusted net profit of no less than 100 million RMB, an increase of about 83.8% year-on-year. In addition, the company announced a stock purchase plan, planning to issue 16.67 million stock purchase rights at an exercise price of 4.48 Hong Kong dollars. Guotai Junan pointed out that the reduction rate of subject-based training institutions has reached 90% after the "double reduction" policy. Leading businesses that have completed compliance are restarting, benefiting from improved market conditions and the potential for significant market share gains. Quality education is encouraged by policies, and high school operations are functioning normally. The company has completed compliance transformation, focusing on rapid development in non-subject-based quality education and high school operations. Considering the gradual clarification of policies and slow supply recovery, compliance-leading businesses are expected to continue to benefit, with the company's net profit expected to be 102 million / 150 million / 218 million RMB for 2023-2025.