New Oriental Education 9901; US: EDU

[winston]

not vested

New Oriental Education & Technology Group (EDU US)

1QFY25: In Line; Moderated Growth Outlook In 2QFY25 On Low Seasonality

EDU’s 1QFY25 top-line slightly missed expectations.

Revenue grew 30% yoy to US$1,435m, slightly missing consensus estimate and previous guidance of 31-34% yoy.

Non-GAAP net profit rose 40% yoy to US$265m, above our and consensus estimates, while net margin inched up 1ppt yoy to 18% for 1QFY25.

EDU expects 2QFY25 revenue (excluding East Buy) to rise 25-28% yoy to US$851.4m-871.8m, 1-2ppt below expectations.

Maintain BUY with a lower target price of US$85.00 (HK$66.00).

Source: UOBKH

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[winston]

not vested

<Research>BOCOMI: NEW ORIENTAL-S Education Biz Remains Robust; Profit Margin Optimization Expected to Continue

2024/10/04 1

BOCOMI commented in its report that NEW ORIENTAL-S (09901.HK) continues to maintain its leading position in international education and steadily expand its education business.

Its profit margins will continue improving even though the expansion progress in FY25 may be slower than in FY24.

The broker anticipated a steady growth trend with a CAGR of 24% in FY24-FY27 education business revenue.

Corresponding to the 12-month profit ending February 2026, a 20x P/E ratio is assigned to the education business, excluding the value contribution of EAST BUY.

The broker kept its TPs at $80 for the company's H-shares and US$103 for A-shares, with a Buy rating remaining in place.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

vested

<Research>UBS Drops New Oriental (EDU.US) TP to US$94.3 as 1Q Results in Line w/ 2Q Temporary Lull

New Oriental (EDU.US) 1FQ25 results and revenue were in line with expectations, while non-GAAP operating margin slightly beat forecasts, UBS issued a research report saying.

UBS believed that the market's negative reaction to New Oriental was largely driven by a relatively soft outlook for its core revenue and margin in 2Q24, including weakness in high-end overseas test preparation programs due to consumption downgrades; headwinds for “1x1 high school after-school tutoring” (AST); and a low season of tourism business post summer.

Furthermore, UBS maintained its constructive view on the education sector.

Against the backdrop of the industry, New Oriental has good visibility and is one of the few industry leaders with a scalable track record, with its revenue/ net profit growing at a CAGR of 21%/ 33% each in FY2025-FY2027.

Taking into account the above factors, the broker dropped its target price on New Oriental from US$97.6 to US$94.3, with rating at Buy.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

<Research>G Sachs Cuts TPs for NEW ORIENTAL-S (09901.HK)/ EAST BUY (01797.HK) to $68/ $8.2

2024/10/24

Goldman Sachs released a research report cutting its target price for NEW ORIENTAL-S (09901.HK) 's H-shares to $68, with rating at Buy, believing that the Company is still in the early stage of a multi-year scale and profit expansion in a relatively stable policy environment.

The broker forecasted that NEW ORIENTAL-S' FY2024-FY2027 core business will grow at a CAGR of 23%/ 34% in terms of revenue/ EPS.

As for EAST BUY (01797.HK), Goldman Sachs cut its target price from $8.3 to $8.2, with rating kept at Sell.

The broker said it could infer from NEW ORIENTAL-S' results that EAST BUY's revenue for the quarter ended August was RMB157 million, implying a non-GAAP operating loss of RMB10.5 million, which is equivalent to a non-GAAP operating profit of -7%.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

not vested

<Results>NEW ORIENTAL-S 1HFY25 NP US$277M, Up ~42%; 2FQ Non-GAAP NP Down 29%

NEW ORIENTAL-S (09901.HK) announced its results for 1HFY25 ended November 2024.

Its interim net revenues came in at around US$2.474 billion, up 25.6% YoY.

During the period, its net profit was US$277 million, up 41.9% YoY, while its operating income increased by 37.9% YoY to US$312 million. Basic net income per ADS was US$1.69.

Dividend History
Announce Date Event Particular
2024/10/23 1st Quarterly No Dividend
2024/08/19 Special Interim SD:USD 0.0600
2024/07/31 Final No Dividend
2024/04/24 3rd Quarterly No Dividend

For 2FQ alone, NEW ORIENTAL-S recorded net revenues of US$1.039 billion, up 19.4% YoY, while its net profit reached US$31.931 million, up 6.2% YoY.

Its operating income fell 9.8% to US$19.255 million, and its non-GAAP net income also decreased by 29.1% YoY to US$35.541 million.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

vested

<Research>UBS Slashes New Oriental Education & Technology Group TP to US$86.2 as Macro Environment Puts Pressure on Study Abroad, Resets Growth Forecasts

New Oriental Education & Technology Group (EDU.US) 2FQ25 results beat management's previous expectations but were mixed compared to the market consensus, UBS issued a research report saying. Of which, revenue beat forecast, but margin missed.

The Company's management attributed the slowdown in growth to weak macro environment.

UBS continued to estimate New Oriental Education & Technology Group to grow 40%/ 34% in FY2025/ FY2026 on its new “K9” plan, and believed that short-term uncertainty persists, but the Company's underlying trend should bottom out in 2HFY2025.

Most of the headwinds from FY2025 should lap in FY2026.

Related News: NEW ORIENTAL-S 1HFY25 NP US$277M, Up ~42%; 2FQ Non-GAAP NP Down 29%

UBS projected New Oriental Education & Technology Group's FY2025/ FY2026 revenue to increase by 13%/ 19%, while adjusted net profit will hike by 28%/ 33%, respectively.

The broker slashed its target price on New Oriental Education & Technology Group's US stock from US$94.3 to US$86.2, with rating at Buy.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN