Guosen Securities: K12 education has the characteristics of a long slope and thick snow, focusing on AI themes and the main line of higher education valuation repair.

Guosen Securities released a research report stating that it maintains an "outperform the market" rating on the education sector. 1. The K12 education industry still has a long-term growth potential, with the significant dividend of the high school entrance examination population and regulatory normalization. The leading traditional educational institutions are still in the process of repairing. 2. Vocational skills and recruitment exam training are mainly result-oriented with high flexibility. As the labor force with high school education and above gradually expands, skilled talents are becoming more important, and strong skill training is being revalued. 3. The AI theme and the main line of higher education valuation recovery. Education is an important scene for the implementation of AI, and the continuous progress of AI technology iteration by 2025 is expected to attract more attention from investors. In addition, if there is progress in the selection and operation of the higher education sector, there may be elastic valuation in the sector after the promotion of the selection operation.