Investment Analysis of Jiahong Education (01935.HK): Dual Opportunities from Policy Tailwinds and Valuation Advantages

Jiahong Education (01935.HK) is a privately-owned higher education service provider listed in Hong Kong, primarily operating in Zhejiang Province [3]. In 2025, the company benefited from favorable vocational education policies in China while advancing major investment projects [1]. The company has stable financial performance, with a P/E ratio of only 3.87x and a P/B ratio of 0.34x, placing its valuation at a relatively low level [0]. However, its year-to-date stock price return is only 2.56%, significantly lagging behind the Hang Seng Index’s 27.47% increase [0]. The new campus construction investment is approximately RMB 825.6 million, with an agreement signed in March 2025 [1], which is expected to enhance the company’s long-term competitiveness.

1. Policy Dividends and Valuation Mismatch
   : Vocational education policy support has brought benefits to the education sector, but Jiahong Education’s stock price performance has not fully reflected its low valuation advantage [0][6].
2. Technical Rebound Potential
   : Technical indicators such as RSI and MACD show that the stock price is at a relatively low level, meeting the conditions for a rebound [0].
3. Insufficient Market Attention
   : Trading volume is stable but turnover rate is low, indicating that there is still room for improvement in the market’s recognition of the company’s value [0].

• Policy Tailwinds
  : China’s vocational education infrastructure construction policies continue to drive the development of the education sector [0].
• Valuation Advantage
  : Low P/E ratio (3.87x) and P/B ratio (0.34x) provide a margin of safety [0].
• Long-term Investment
  : The new campus construction project (investment of RMB 825.6 million) will enhance the company’s school-running capacity, which is beneficial for long-term development [1].

• Stock Price Lag
  : Year-to-date stock price increase is only 2.56%, significantly lagging behind the Hang Seng Index [0].
• Low Market Attention
  : Low turnover rate and limited market attention may affect stock price performance [0].
• Sector Rotation
  : The pace of sector rotation in the Hong Kong stock market is uncertain, and the sustainability of the education sector’s popularity remains to be seen [6].

Jiahong Education (01935.HK) has potential investment value due to vocational education policy tailwinds and low valuation advantages. The new campus construction project will lay the foundation for the company’s long-term development, but attention should be paid to changes in market sentiment and the pace of sector rotation. Investors should combine their own risk preferences and comprehensively consider policy trends, valuation levels, and market liquidity factors [0][1][6].