Is kode education “wrongly killed”

In the summer vacation of 2021, the education and training industry should be the most unforgettable.

Due to the sudden attack of regulatory situation, many practitioners usher in the headwind period in the peak season.

On July 24, the new regulation of “double reduction” was released. All localities will no longer approve new discipline after-school training institutions for students in the stage of compulsory education, and the existing discipline training institutions are uniformly registered as non-profit institutions.

This means that after-school training in compulsory education discipline has closed the capital door.

The business model is reshaped and the development logic is changed, and severe pains will follow. Facing the inflection point, there is no lack of doubt about how to move forward in the market.


Is it “wrong killing”?


Focusing on Kede education, the closing price was 7.93 yuan / share on July 26, down 12.57%; On the 27th, it fell another 10.47%.

In this regard, Kede education has something to say.

On July 25 and 26, it successively issued risk warning Announcements: according to the audited 2020 annual report, the company’s education sector realized a net profit attributable to the parent company of 163 million yuan in 2020. Among them, K12 extracurricular training realized a net profit attributable to the parent company of 3.037 million yuan, accounting for 1.84% of the net profit, which had little impact on the overall operating performance of the company. The company will cooperate with the opinions to further operate in compliance and minimize the impact of this part of business.

At present, Kede education mainly provides vocational academic education and repeat business for students in non compulsory stage. The company is actively expanding the current education track, expanding its business to vocational high schools, private high schools and art and sports school enterprise cooperation, and continues to integrate the leading content service providers of vocational education to continuously enhance its development in the vocational education sector.

In other words, K12’s performance contribution is only a fraction, and the stock price shock has the meaning of “being killed by mistake” and “lying on the gun”.

Is that true?

Since July 28, its share price has rebounded slightly. As of August 3, its closing price was 8 yuan and its market value was 2.376 billion yuan.

However, with the extension of the dimension, the overall trend of its share price during the year was still a shock decline, with a cumulative decline of nearly 40%. Compared with the historical high of 28.78 yuan on August 7, 2020, it has shrunk by about 70% a year.

So what is the market waiting for?

It is worth noting that Kodak education, formerly known as koswood, which started with environmentally friendly offset ink, was founded in 2003. At the beginning of listing in 2011, the main business was still offset printing ink. In December 2017, it completed the acquisition of 49.76% equity of Longmen education and opened the dual main layout mode of offset printing ink and education. In October 2020, the Chinese name of costwood was changed to Suzhou Kede Education Technology Co., Ltd.

On March 9, 2021, Kede Education announced that it planned to bid farewell to the traditional ink business completely; From April to June 2021, it completed a series of school acquisition projects, and vocational education will become the company’s main business in the future.

It is worth affirming to strengthen the heart of transformation. However, it coincides with the tide of cleaning up the education and training industry, and the above actions are destined to attract much attention.

You know, from various policy signals, the focus of rectification is K12, but the impact significance and guidance signal is the whole education and training industry. Abandoning capital fattening, restraining short-term profit chaos harvesting and returning to the original intention of the essence of education are the fundamental essence of this regulatory situation.

Yu shengmei, an industry analyst, said that in recent years, the education track has been hot and attracting more capital. However, the pursuit of capital and interests conflicts with the reputation of education and the attributes of public tools, which leads to all kinds of chaos. How to return the whole education and training industry to its essence is the deep meaning of strong supervision. From the suppression of the capitalization of preschool education at the end of 2018 to the explicit elimination of capitalization in the draft preschool education law in 2020, and then to the closure of the door to the capitalization of compulsory education in July this year, the policy can be described as continuous overweight. Whether the future will continue to the whole field of education and training must be observed.

Focus on Kodak education. Although the name has been changed, as a cross-border person in transformation, there are not many education related genes. Whether it is “rubbed” hot and professional geometry is also one of the concerns of public opinion.

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