According to recent market updates, education stocks are experiencing significant gains. As of the latest report, 中国东方教育 (CHINA EAST EDU) rose by 5.2% to HKD 6.88, 中教控股 (CHINA EDU GROUP) increased by 4.39% to HKD 3.09, 宇华教育 (YUHUA EDU) climbed 3.7% to HKD 0.56, and 新高教集团 (NEW HIGHER EDU) saw a 2.46% rise to HKD 1.25.

The recent news surrounding 宇华教育 (YUHUA EDU) and its transition to profitability through 湖南涉外经济学院 has drawn significant attention within the education sector. According to a research report from Shenwan Hongyuan, investors are advised to pay attention to Hong Kong higher education companies. The possibility of restarting profitability choices indicates that the revenue distribution for private higher education institutions is likely to improve, and there is an expected recovery in expansion momentum.

Furthermore, with a slowdown in educational investment alongside peak capital expenditures, there is an anticipated enhancement in the profitability of higher education companies. Guoyuan International also released a report indicating that profit-making schools benefit publicly listed companies by enabling dividends and alleviating debt through profit distribution.

Although transitioning to profitability will require transferring land, property, and other assets along with tax payments—a short-term cost increase—this process is expected to achieve a long-term market revaluation of assets. Currently, 宇华教育 (YUHUA EDU) is the only listed company to receive approval, which could help in sentiment-driven valuation recovery in the short term. Should other publicly listed companies follow suit, this may result in a long-term revaluation of the sector.