Driving Factors and Comprehensive Analysis of Grand Honor Education (01935.HK) Becoming a Hot Stock in Hong Kong Stock Market

Grand Honor Education Technology Co., Ltd. (01935.HK) is a Hong Kong-listed company mainly engaged in higher and secondary education services, operating three schools: Changzheng College, Jingyi Middle School, and Information Business College [0]. Its 2025 interim results show that profit attributable to shareholders was RMB 237.8 million, a year-on-year decrease of 11.108% [0].

The core driving factors for the company to become a hot stock in Hong Kong include:

1. Favorable Policies
   : China’s vocational education policies have driven the overall growth of the industry, and the Hong Kong education sector has received capital inflows [0];
2. Valuation Advantage
   : The current share price is HK$0.800, with a market capitalization of approximately HK$1.281 billion. The P/E ratio of 4.21x and P/B ratio of 0.34x indicate obvious undervaluation [0][2];
3. Industry Attention
   : The infrastructure improvement plan for the education sector brings industry-wide opportunities, and investors’ attention to policy-beneficiary targets has increased [0][3].

Cross-domain correlations show that favorable vocational education policies and the company’s low valuation form a resonance effect: Policies provide long-term growth expectations for the industry, while low valuation offers a safety margin for short-term investments [0]. In addition, the overall capital inflow into the Hong Kong education sector reflects market confidence in the recovery of the education industry [0][4].

: The 11.108% year-on-year decline in interim profit in 2025 requires attention to the sustainability of profitability [0]; Volatility in the Hong Kong stock market may affect short-term stock price performance [0].
: Policy-driven growth in vocational education demand, and the recovery space brought by the company’s low valuation [0].

Grand Honor Education (01935.HK) benefits from favorable policies for China’s vocational education and valuation advantages, but the interim profit decline requires vigilance. Investors can pay attention to the progress of policy implementation and the company’s profit improvement [0].