For the K12 education industry, this summer is a bit”cold”.

On June 1st, the national market supervisory department gave a positive feedback on learning and thinking, New Oriental, the head of the 1 to 1 school, a total of 15 off-campus training institutions for false propaganda violations, and 13 off-campus training institutions for price fraud violations, a total of 36.5 million Yuan’s top grid fine.

The keen capital market is even more cruel:Since the third quarter of last year, Hillhouse Capital has been reduced successively In the first quarter of this year, Jinglin Assets also significantly reduced its holdings in the online education sector, selling nearly 80%of its holdings; in the first quarter of this year, the Tiger Global Fund’s full clearance was high. way.

Regulations are tightening, capital is fleeing, and related U.S. stocks in the K12 education industry are hurt:GOTUStock price has dropped 68%this year, good future (TAL) fell 56%and New Oriental (EDU) fell 47%.

Fazi also noticed the oversold rebound. This week, Gaotu’s stock price rebounded by 13%, with a maximum swing of 40%; Good Future’s stock price rebounded by 3%, with a maximum swing of 30%; New Oriental’s stock price rebounded by 5%, with a maximum swing of 27%.

The following is a graph of stock price fluctuations during the year compiled by Fazi:

Picture source:Huasheng Information

As we can see from the above picture, we exclude newly listed ones.Zhoumen Education (ZME), Youdao (DAO) is very resilient .

Where is the answer?

NetEase Youdao Q1 earnings report is eye-catching, a good learning product (smart Hardware) net income is 202 million yuan, Year-on-year growth is as high as 280%, This is due to NetEase Youdao Dictionary Pen 3Sales have grown tremendously.

The potential of this track cannot be underestimated. According to iResearch data, in China’s education smart hardware market from 2018 to 2020, both traditional and emerging categories will show a steady upward trend, and it is expected that the overall The market scale will reach the level of hundreds of billions.

Will educational smart hardware be a new outlet for the entire industry? Welcome to leave a message to participate in the discussion.

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