New Oriental Education 9901; US: EDU

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vested

<Research>BofAS Trims NEW ORIENTAL-S (09901.HK) TP to $49.3, Keeps Rating at Buy

BofA Securities issued a research report lowering its FY2025/ FY2026 non-GAAP EPS forecasts for NEW ORIENTAL-S (EDU.US) by 3%/ 8% each to reflect weaker-than-expected overseas revenue growth and lower margin assumptions.

The broker trimmed its target prices for NEW ORIENTAL-S' US stock/ H-shares to US$63.2/ $49.3 from US$68.6/ $53.5.

Despite weak overseas business, K19 business remains resilient with margin improvement, which will account for over 50% of revenue in FY2025.

BofA Securities reiterated rating at Buy due to positive risk-reward and continuous share buyback.

Source: AAStocks Financial News

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

[winston]

not vested

<Results>NEW ORIENTAL-S 3FQ NP Up 0.1% YoY to USD87.26M; US Shrs Dive 3% Pre-mkt

NEW ORIENTAL-S (09901.HK) announced its 3FQ results ending February 2025.

Total net revenues sagged 2% YoY to USD1.183 billion; excluding revenues generated from East Buy private label products and livestreaming business, the amount gained 21.2% to USD1.038 billion.

Operating income for 1FQ hiked 9.8% YoY to USD125 million; excluding operating loss generated from East Buy private label products and livestreaming business, it rose 5% YoY to USD126 million.

For 3FQ, net income attributable to shareholders grew 0.1% YoY to USD87.255 million.

Diluted net income per ADS was USD0.54. Non-GAAP diluted net income per ADS was USD0.70.

New Oriental's U.S. shares dived 3.4% pre-market to USD42.9.

Source: AAStocks Financial News

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

[winston]

not vested

<Research>Macquarie: NEW ORIENTAL-S' Overseas Biz Slowdown Goes Against Profit Margins; FY26-27 Earnings Forecasts, TPs Cut

New Oriental Education & Technology (EDU.US) (09901.HK) logged a 2% YoY decline in its 3QFY25 revenue, while its education business revenue rose by 21% YoY, in line with guidance, according to a report from Macquarie.

The company's non-GAAP OP margin after excluding SD GOLD (01787.HK) dropped by 1.8 ppts YoY to 13.3%, slightly better than the guided decrease of 2-2.5 ppts.

Although the company expected profit margins to expand on cost controls in FY26, Macquarie is concerned that the slowdown in its overseas business will negatively impact the business mix and put pressure on its profit margins.

Macquarie adjusted its FY25/ FY26/ FY27 non-GAAP net profit forecasts for the company by +10.7%/ -1.4%/ -3.3%.

The broker also chopped its target price for NEW ORIENTAL-S (09901.HK) from $31.9 to $25.7 and the target price for New Oriental Education & Technology (EDU.US) from US$41 to US$33, with an Underperform rating remaining in place.

Source: AAStocks Financial News

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

[winston]

not vested

OPM to stabilise in FY5/26F

EDU’s revenue decreased by 2% to Rmb1.2bn in 3QFY5/25, below our expectation, due to the slowdown of its overseas test preparation and consultation business.

Non-GAAP net profit decreased by 14.3% to Rmb113m, slightly above our expectation, due to better GPM expansion and control of A&P expenses.

We forecast revenue to increase 12% in 4QFY5/25F and 14% FY5/25F, with nonGAAP net profit up 127% and 14% yoy, respectively.

Management said the priority for profitability is higher than that of revenue growth in FY5/26F and EDU has adopted various measure to save costs since 3QFY5/25.

We reiterate Add, with a lower DCF-based TP of HK$49.9.

Source: CGS

https://rfs.cgsi.com/api/download?file= ... 44F9DE0CE1

[winston]

not vested

<Research>CICC: NEW ORIENTAL-S (09901.HK) Core Biz Growth Pressure Continues to Be Absorbed w/ Improved Profitability

NEW ORIENTAL-S (09901.HK) (EDU.US) 's core business growth pressure continued to be absorbed, with improved profitability, CICC released a research report saying.

It is expected that revenue for 4FQ25 ended May will increase by 5% YoY to US$1.197 billion.

Non-GAAP operating profit is projected to be US$38.06 million, corresponding to a non-GAAP operating profit margin of 3.2%, flat YoY.

Related News: CMSI Keeps TP for New Oriental (EDU.US) at USD63, Rating as Buy

Excluding EAST BUY (01797.HK), CICC estimated NEW ORIENTAL-S' core business revenue to incline by 13% YoY to US$1.037 billion, basically unchanged from the high end of the company's previous guidance range of between US$1.0091 billion and US$1.0366 billion.

The broker introduced its FY2027 revenue forecast at US$6.35 billion and a non-GAAP net profit forecast of US$733 million.

CICC kept rating at Outperform for NEW ORIENTAL-S' US stock, with a target price of US$62.

Source: AASTOCKS Financial News

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