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

Cathay Education (01935.HK) entered the Hong Kong Stock Surge List of the East Money App on December 11, 2025 [0]. As of the Hong Kong stock market close that day, the share price was HK$0.83, up 1.22% from the opening price of HK$0.81 [0]. In terms of price performance, the highest price of the day was HK$0.87, the lowest was HK$0.81, and the 52-week price range was HK$0.70-1.29, with the current price close to the 52-week low [0]. Regarding trading volume, only 62,000 shares were traded that day, far below the average of 105,180 shares, indicating limited trading enthusiasm [0].

1. Low Valuation Attraction
   : Cathay Education’s current trailing twelve months (TTM) P/E ratio is 4.37x, far below the education services sector average of 11.0x, and the P/B ratio is only 0.37x, leaving significant room for valuation repair [2][3].
2. Sector Linkage Effect
   : On November 16, 2025, the Hong Kong stock education sector experienced a collective rally, which may drive up the activity of individual stocks within the sector such as Cathay Education [2].
3. Insufficient Market Participation
   : Although it entered the surge list, the trading volume is below the average, and there is a lack of significant analyst coverage and institutional ratings [3], with both value investment appeal and liquidity risks coexisting.

• Opportunities
  : The low valuation characteristic attracts value investors; if fundamentals improve, there is great potential for valuation repair [2][3].
• Risks
  : The 2025 interim financial report shows a 10% year-on-year decline in net profit, facing performance pressure [2]; the education industry is greatly affected by policies, and regulatory risks need continuous attention [0]; insufficient liquidity may lead to prices being easily affected by a small number of transactions, and the momentum for valuation repair is uncertain.

Cathay Education (01935.HK) entered the Hong Kong Stock Surge List due to low valuation. The current share price is close to the 52-week low, and both the P/E and P/B ratios are below the sector average. Trading enthusiasm is limited, and there are liquidity risks. Mid-term performance decline and policy regulation constitute major risk points; valuation repair requires fundamental support. Key price levels: Support level at HK$0.70 (52-week low), resistance levels at HK$0.87 (day’s high) and HK$1.29 (52-week high).