New Oriental Online 1 1 Can the education and training industry come back to life?

According to the Financial Association (Shanghai, editor A Rong), after six months of adjustment, the education sector has recently regained capital inflows. For example, New Oriental Online (0 1797) rose nearly 80% in 165438+ 10, during which the company's share price reached a minimum of 4.0 1 HK$, and then rebounded sharply in recent days.

The education department has always been regarded as a "golden hen" until the State Administration of Market Supervision announced on June 1 Children's Day that it would further reduce the burden of students' homework and off-campus training in compulsory education, promote full coverage of after-school services, vigorously rectify off-campus training institutions, and reduce the academic burden of minors.

The above-mentioned actions led to the education industry, which was originally prosperous, entering the ice age. Since June, the share prices of many online education companies in Hong Kong have generally fallen by more than 33%. Among them, New Oriental Online fell by 65%; China Education Holdings fell by 33%; Oriental education in China dropped by 56%.

However, the regulatory notice is only the beginning of the storm sweeping the training industry. Many online head education institutions not only stopped recruiting completely, but also launched large-scale layoffs. For example, Good Future, New Oriental and Gaotu have announced that they will stop the subject training services in the compulsory education stage in China Mainland from next year, and Xueda Education has also announced relevant adjustment plans.

According to the recent announcement of New Oriental, the company shifted its focus and resources to educational products and services unrelated to K-9 discipline training services, such as preparatory courses, adult language training courses and textbooks. At the same time, the company will continue to explore new business opportunities and growth initiatives.

At the same time, Yu Zeng, the chairman of New Oriental Online, said during the live broadcast that New Oriental will withdraw the 1500 teaching point and the biggest business K9 training in New Oriental will stop. In the future, New Oriental plans to build a large-scale agricultural platform, which will bring goods with hundreds of teachers through live broadcast to help sell agricultural products and support rural revitalization. This also shows the "helpless move" of the transformation of New Oriental.

Subsequently, the General Office of the Central Committee and the General Office of the State Council jointly issued the Opinions on Promoting the High-quality Development of Modern Vocational Education (hereinafter referred to as the Opinions) on June 65438+1October 65438+March, further explicitly encouraging listed companies and leading enterprises in the industry to hold vocational education. By 2025, the enrollment scale of vocational undergraduate education shall not be less than 10% of the enrollment scale of higher vocational education. On the 20th, Guangming Daily published an article saying that the "benefits" of vocational education are to hold high-quality vocational education, train high-quality skilled talents and train health troops for industrial upgrading.

Once the above opinions were released, the education department most affected by the policy got a little respite. The education sector has rebounded sharply, and New Oriental Online is the "deep-water bomb" that has recently led the rise.

In addition, New Oriental Online recently obtained an increase of 6.5438+0.429 million shares at an average price of HK$ 69.47, involving an amount of about HK$ 9.9273 million. After the completion of this increase, the latest shareholding is 47,735, 1 17, and the shareholding ratio has increased from 4.63% to 4.77%.

Some institutions have also increased their holdings. The Q3 position report (13F) submitted by Goldman Sachs to the US SEC shows that Goldman Sachs bought a large number of educational stocks such as New Oriental and Good Future in the third quarter. New Oriental Q3 was increased by Goldman Sachs by 28.37 million shares, up 352% from the previous month. In the future, it will increase its holdings by nearly 2 1.38 million shares, an increase of 738% from the previous month; The holding of elite education exceeded 65,438+0,565,438+10,000, an increase of 89% from the previous month.

CITIC Securities recently pointed out that high-quality development and deep integration with the industry are the future development direction of vocational education. This opinion is a shot in the arm for the education industry whose confidence has been severely hit this year, which has eased the market's policy concerns in the field of vocational education. The Opinions also pointed out that many vocational education companies should develop high-quality vocational education that is deeply integrated with the industry and conforms to the direction of China's industrial development, and provide full support for vocational education in terms of policies and mechanisms.