Guolian Minsheng Securities·2026-03-08 12:12Investment Rating - The report maintains a "Recommend" rating for the education industry [1]. Core Insights - The education industry is expected to experience a "three-dimensional resonance" with policy improvements, supply clearing, and demand release, shifting the investment logic from policy-driven to performance-driven. The industry is also seen as having relatively low valuations, with potential for a "Davis double hit" in performance and valuation under policy support. The integration of AI in education is highlighted as a key investment theme, with leading education companies likely to benefit from the "AI + education" trend [1][25]. Summary by Sections 1. Education Industry Policy Dynamics - The Ministry of Education has initiated the 2026 national master's degree admissions process, ensuring fairness and scientific management in the admissions [10]. - A meeting between the Ministry of Education and Henan Province emphasized the importance of education in national development and the need for a modern vocational education system [10]. - The government work report highlighted the goal of increasing the average education years of the labor force to 11.7 years and planning high-quality education system construction [10]. 2. Education Stock Dynamics - Action Education repurchased 339,400 shares, accounting for 0.2846% of its total share capital, with a total expenditure of approximately RMB 15.21 million [13]. - Xueda Education provided a guarantee for its subsidiary's credit line, increasing its total guarantee balance to RMB 520 million [13]. 3. Education Index and Stock Performance - The education sector underperformed the CSI 300 index, with the CITIC Education Index declining by 4.9762% compared to a 1.0658% decline in the CSI 300 [14]. - The top-performing stocks in the education sector for the week included Qinxing Co. (+12.58%) and Action Education (+10.30%), while the worst performers included Quanta Education (-7.51%) and Borye Communication (-7.84%) [18]. 4. Investment Recommendations - The report recommends focusing on three main lines of investment: "AI + education" with companies like Kevin Education and Kede Education, performance and valuation resonance with Action Education and Xueda Education, and the search for a second growth curve with Botong Co. [25].