Hong Kong Stock Concept Tracking | DeepSeek significantly reduces costs AI education transformation is imminent (with concept stocks)

ChatGpt's generative artificial intelligence has opened a new era of AI, achieving good interactive question-and-answer capabilities, multimodal understanding, and multi-type content generation with larger-scale models; Released in January 2025, DeepSeek features low cost, open-source, and reasoning capabilities, which will improve the accuracy of AI education, promote deep thinking, and save training costs, making heuristic teaching possible. According to Zhitong Finance APP, the continuous evolution of large models will bring about a new round of transformation in AI education, with CITIC Securities Research expecting to accelerate the emergence of native education apps in the era of large models. What are the commercialization scenarios for AI education: AI-enabled educational scenarios can be divided into teaching, learning/practice/assessment, management, and examination. In terms of maturity, AI education is currently relatively mature in areas such as photo question searching, error correction, assessment, and personalized Q&A, and can enhance the quality and efficiency of teaching and research. However, there is still room for improvement in precise learning. CITIC Securities Research believes that in the transformation of education by AI, "replacing tutoring teachers" is easier than "replacing main teachers," and AI learning assistants may become a reality. Commercialization directions include: Intelligent educational hardware supported by large models, integrating Q&A, assistance, and teaching scenarios, is expected to replace the functions of tutoring teachers (Q&A, grading, assessment, practice process) and some teaching teachers (knowledge point explanation, learning process). In the post-double reduction era, learning machines have not disappeared but have continued to grow, with sales of all-channel learning machines (including practice machines) exceeding 6 million units in 2024, up 25.5% (with online sales accounting for over 90%), representing about 3% of K12 school-age population. Assuming future penetration reaches over 30%, this corresponds to more than 50 million units, and with AI support, learning/practice machines are expected to achieve a transformation from 1 to 10 in the industry. AI education software applications for specific educational scenarios, such as language learning and Q&A. B-end application scenarios that further enhance teachers' work efficiency. Guosheng Securities released a research report stating that the current trend in the education and training industry remains positive, with the population of school-age children still at a high level, and the industry's prosperity is expected to be maintained; the policy environment is shifting towards a positive direction, with a clearer benign regulatory attitude; AI is leading educational transformation, and the domestic commercialization process is expected to accelerate. After the "double reduction," the competitive landscape of the industry has optimized, while the effectiveness of non-disciplinary professional transformation has been validated. K12 education and training companies' capacity and profitability continue to grow. The firm is optimistic about the growth potential of compliant companies with teaching research, faculty, and brand strength, and recommends continuing to pay attention to opportunities in the education and training sector. Leading AI education companies in Hong Kong stocks: New Oriental-S (09901): New Oriental's layout in the AI education field is not limited to traditional subject tutoring but has also expanded into quality education and intelligent hardware. For example, it has invested in institutions for arts and sports training, while also developing offline courses and services in programming, robotics, and study tours. In addition, New Oriental has launched intelligent learning systems and equipment businesses to meet the market's demand for diversified education. Fenbi (02469): Fenbi is a leading company in the public examination training field, with significant layouts in AI education. In July 2024, Fenbi launched a domain-specific large model focused on public examinations and introduced Fenbi AI Teacher to help users better understand the competitiveness of the positions they are applying for In addition, Fenbi has launched a premium interview AI evaluation product, which is the first AI tool for interviews in the civil service examination industry. With the continuous growth in the number of applicants for the national civil service examination, Fenbi's AI education products are expected to further enhance its market share. NetDragon (00777): NetDragon is a leading company in the global education market, with its education business covering over 190 countries and regions worldwide, serving more than 150 million users. The company is fully committed to the AI + education field, planning to complete the spin-off and listing of its overseas education business by December 2024, rebranding as "Mynd.ai" (stock code: MYND), aiming to accelerate the application of AI technology in the education sector. In addition, NetDragon's SaaS products are expected to be the first to land in the European and American markets, further expanding its global market share