Cathay Education (01935.HK) Hong Kong Stock Hot Stock Analysis: Driven by Low Valuation and Industry Recovery

1. Stock Overview
   : 01935.HK (Cathay Education) is listed on the Hong Kong Exchanges and Clearing Limited, belonging to the education sector [1]. As of December 3, 2025, the stock price is HK$0.82 with a market capitalization of HK$1.31 billion [1].
2. Reasons for Popularity
   :
   • Industry sector collective popularity
     : On November 16, 2025, the Hong Kong stock education sector rose collectively, driving up the activity of individual stocks [1].
   • Significant low valuation advantage
     : P/E ratio 4.2x (industry average 11.0x), P/B ratio 0.4x (industry average 1.4x). The stock price is at a relatively low position within the 52-week range (HK$0.690-HK$1.290), with large room for valuation repair [1].
   • Stable fundamentals
     : The mid-2025 financial report shows revenue of RMB 534.56 million, a year-on-year increase of 3%, maintaining relatively stable fundamentals [1].
3. Price and Volume
   :
   • Recent prices: up 6.67% on November 11, 2025, up 8.11% to HK$0.80 on November 24, 2025, and stabilized at HK$0.82 on December 3, 2025 [1].
   • Volume: average daily volume is low (e.g., 106,000 shares on November 26), but accompanied by increased volume when entering the list [1].
   • Support/resistance levels: support at HK$0.690 (52-week low), resistance at HK$1.000 and HK$1.290 (52-week high) [1].
4. Market Sentiment
   : The education sector performed actively from November to December, with enhanced expectations of valuation repair; low valuation attracts value investors; Hong Kong stocks continued their upward trend in early December, providing a positive environment [2].

• Industry cycle and valuation linkage
  : The collective recovery of the education sector provides price drivers for low-valued individual stocks (such as Cathay Education), which can enter the hot list even with low volume, reflecting the market’s consensus on sector valuation repair [1][2].
• Fundamental stability support
  : Although mid-term net profit declined by 10%, revenue growth maintains fundamental stability, reducing risk concerns about low-valued stocks and attracting investor attention [1].

• Risks
  :
  • Liquidity risk: recent low volume affects trading activity [1].
  • Performance pressure: net profit decreased by 10% year-on-year, need to pay attention to subsequent performance [1].
  • Policy regulatory risk: the education industry is greatly affected by policies [1].
  • Uncertainty of valuation repair: whether low valuation will continue to attract capital remains to be seen [1].
• Opportunities
  :
  • Industry recovery drives valuation repair [1][2].
  • Low valuation advantage attracts value investors [1].

Cathay Education (01935.HK) entered the Hong Kong stock hot list due to education sector recovery, low valuation, and stable fundamentals. The stock price has fluctuated upward recently, near the 52-week low. Attention should be paid to liquidity, performance, and policy risks, while positive industry sentiment provides possibilities for valuation repair.