Guangzhou Daily News (All media reporter Wen Jing) As of 21:33 on the 27th, the US stock market opened, New Oriental rose 11.86%, Good Future rose 19.09%, and Gao Tu rose 15.60%. On the 27th, the A-share and Hong Kong stock markets, education stocks continued to fall. The reporter noticed that on the large-scale domestic second-hand platform, there are many merchants dealing with the tables and chairs of education and training institutions at low prices.
U.S. stocks and Chinese education stocks rebounded at the opening of the 27th
Flush data shows that at the close of US stocks on July 26, local time, Chinese education stocks fell collectively, continuing the decline in the previous trading day, among which three education “leader” stocks fell by more than 20%. After falling 54% in the previous session, New Oriental closed down 33.79% on the day at $1.94 per share. Good Future fell 26.67% to $4.4 per share. Gaotu closed down 28.98 percent at $2.50 per share. It is reported that as of the close of the US stock market on the same day, the stock prices of New Oriental, Good Future, Gaotu, etc. fell by more than 90% from the high point in February this year.
As of the close of A-shares on the 27th, the online education index fell 2.28%, only 16 stocks in the sector rose, and 76 stocks fell, of which Doushen Education and Kede Education fell by more than 10%, and Xueda Education fell to the limit. In the Hong Kong stock market, New Oriental-S fell 8.63%, New Oriental Online fell 3.05%, and Excellent Education Group fell 16.39%.
Affected by the collective “diving” of education stocks, Bosera Global China Education (QDII-ETF) fell in response, falling 9.93% to a closing price of 0.617 yuan as of the close on July 27. According to public information, Bosera Global China Education (QDII-ETF) was established on June 8 with a fund size of 256 million yuan. Among the top ten heavy stocks of the fund, Zhonggong Education and Doushen Education ranked first and sixth respectively.
Tables and chairs of education and training institutions are discounted or processed wholesale
Recently, the reporter noticed in the domestic large-scale second-hand platform App that many merchants in many places are dealing with the tables and chairs of education and training institutions at low prices. According to some merchants, the children’s learning tables and chairs sold in education and training institutions are ninety percent new, and they have only been used four or five times after assembly. The price is only 5~6% off the original price. Some merchants handle more than 500 sets of desks and chairs, claiming to be the transfer of desks and chairs in the training center of tutoring classes and cram classes, starting from 10 sets, and are brand new, and a set of single desks and chairs is only about 70~85 yuan / set.
Some parents revealed that some large education and training outlets in a certain tier city are already selling desks, chairs and computers, and internal personnel are optimized and adjusted. The reporter called the national consultation hotline of Xinghuo Education as a parent on the same day, and the customer service said that the summer school and the fall class continue to be registered, and the local teacher will communicate directly with the parents about the specific course situation. As of press time, the local teacher of the institution has not returned the call.
Some parents are worried that under the “double reduction” policy, will the autumn and summer vacation courses of Xueersi be adjusted? Good future response, is still waiting for further notices and requirements from relevant departments in various places. If there is any course change in the future, students and parents will be notified as soon as possible.
Recently, a screenshot of a WeChat chat promoting the “New Oriental Youneng Middle School Summer Training Camp” circulated on the Internet. On the 27th, New Oriental debunked rumors about the summer training camp through its official Weibo.
Institution: After-school services on campus may have certain opportunities
Some institutions continued to downgrade education stocks. It is reported that on the 27th, Daiwa Securities downgraded New Oriental from buy to hold, with a target price of $2.40. Previously, Jefferies lowered its future price target from $100 to $10; Lowered NetEase Youdao’s target price from $45.7 to $13. Lowered New Oriental’s price target price to $5.3 from $22
Huatai Securities pointed out that the “double reduction” policy has carried out all-round and strict control of K12 discipline training. It is believed that in the future, there will no longer be an increase in K12 subject training, the stock will also be reduced, and the existing institutions cannot operate normally and cannot be capitalized, and the business model and capitalization road are no longer established. Investors should pay attention to this and avoid the relevant sectors.
Securities institutions believe that the “double reduction” policy proposes to improve the level of after-school services in schools to meet the diversified needs of students. In the future, the quality of education and teaching will be greatly improved, and there may be certain opportunities for after-school services in schools.