Cathay Education (01935.HK) Hong Kong Stock Hot List Market Analysis

Cathay Education (01935.HK) is an education and training service enterprise under the consumer defensive sector. As of November 28, 2025, it closed at HK$0.810 [1] with a market capitalization of approximately HK$1.3 billion [0]. The stock entered the Hong Kong Stock Surge List on December 2, 2025, with core driving factors including:

1. Sector Linkage Effect
   : On December 1, 2025, Hong Kong education stocks rose collectively—China East Education gained over 4%, New Oriental-S and Guangzheng Education gained over 3% [2], boosting sector sentiment;
2. Policy Support
   : China’s Ministry of Education continues to advance vocational education system construction, emphasizing industry-education integration and internationalization [3], providing a policy safety margin for the education industry;
3. Valuation Appeal
   : The current price-to-book ratio is only 0.36x, significantly lower than the industry average [1].

In terms of price and volume, as of November 28, 2025, Cathay Education’s year-to-date gain is 3.85% and 1-year gain is 1.22% [1]. Driven by the sector’s performance on December 1, the stock price saw a short-term surge on December 2. However, the average daily trading volume is only 158,709 shares, and the volume on November 28, 2025 was just 6,000 shares [1], making it a low-liquidity stock.

1. Mismatch Between Industry Sentiment and Individual Stock Performance
   : Affected by the AI+education concept and policy improvements, institutions generally believe the education sector has good performance and expected valuation upside [4]. However, Cathay Education has low liquidity and limited attention—this listing may be a short-term capital-driven impulse rally;
2. Emergence of Policy Marginal Effect
   : Continuous advancement of vocational education policies brings a policy safety margin to education stocks, which is the core long-term logic for the sector’s overall rebound;
3. Coexistence of Valuation Repair Potential and Risks
   : The low price-to-book ratio reflects valuation appeal, but profit growth pressure (11% decline in net profit in H1 2025 [5]) limits long-term repair space.

• Opportunities
  : Marginal improvement in education sector policies provides large valuation repair space; low price-to-book ratio has value investment potential.
• Risks
  : Profit growth pressure (11% decline in net profit in H1 2025 [5]); low liquidity leads to sharp stock price fluctuations due to large transactions; policy regulatory uncertainty remains in the education industry.

Cathay Education (01935.HK) entered the Hong Kong Stock Hot List mainly driven by the education sector’s collective rebound and policy support. It has valuation appeal but faces profit, liquidity, and policy risks. The 52-week high-low range is HK$0.700-HK$1.290 [1], and the current price is close to the 52-week low, with support at HK$0.700 and resistance at HK$1.00.

This report is only a market analysis and does not constitute investment advice. Investors should make prudent decisions based on their own risk tolerance and market conditions.