Understanding the Market | Education stocks perform strongly, institutions say the K12 sector's prosperity continues, and AI commercialization is gradually being realized

Education stocks performed strongly. As of the time of publication, CHINA EAST EDU rose 7.14% to HKD 6.75; VIRSCEND EDU rose 6.57% to HKD 0.227; SCHOLAR EDU rose 4.12% to HKD 4.04; NEW ORIENTAL-S rose 2.89% to HKD 37.35. Galaxy Securities pointed out that the K12 supply-demand pattern continues, benefiting from rigid demand + supply optimization, and the gradual realization of AI commercialization. Gaotu's first-quarter performance shows that non-disciplinary and high school businesses remain the core growth drivers, and benefiting from new user growth, the non-disciplinary business has achieved profitability. In addition, the AI English project "Learn Spoken English with Daniel Wu," in collaboration with Daniel Wu, has become profitable, reflecting the feasibility of the education business model under the IP + AI model. Cathay Securities released a research report stating that it focuses on high school education system reform. The firm pointed out that high school education demand is rigid, still possessing a 7-8 year demographic dividend period, with government support to expand high school education degree supply, guiding and regulating the development of private education, promoting the integration of vocational and general education, and focusing on related targets benefiting from policies and demand dividends