Investment Rating - The report maintains a "BUY" rating on New Oriental, indicating a strong core educational business, solid margin expansion trend, and attractive shareholder return [1][18]. Core Insights - New Oriental's 2QFY26 results exceeded expectations, with net revenue increasing by 15% YoY to US$1.19 billion, surpassing Bloomberg consensus estimates by 3% [1]. - Non-GAAP operating income surged by 207% YoY to US$89.13 million, significantly beating the consensus estimate of US$54.87 million, driven by enhanced operational efficiency [1]. - The management anticipates net revenue growth of 11-14% YoY for 3QFY26E, raising the FY26E net revenue forecast to US$5.29-5.49 billion, reflecting solid momentum in new educational and high-school tutoring businesses [1]. Financial Performance - Revenue projections for FY26E are set at US$5.47 billion, with a YoY growth of 11.6%, and adjusted net profit is expected to reach US$594.2 million [2]. - The report forecasts a continued revenue growth trajectory, with FY27E and FY28E revenues projected at US$5.99 billion and US$6.46 billion, respectively [2]. - Non-GAAP operating profit margin (OPM) is expected to expand to 12.8% in 3QFY26E, up from 7.5% in 2QFY26, indicating improved operational efficiency [9][10]. Valuation - The target price for New Oriental is set at US$78.00, reflecting a 32.3% upside from the current price of US$58.95 [3]. - The valuation is derived from a sum-of-the-parts (SOTP) analysis, with the educational and consulting business valued at US$75.00 based on a 25x FY26E PE ratio [12][13]. - The report highlights a strong growth outlook for the educational segment, with a revenue CAGR of 10% expected from FY26 to FY28 [13].

Group 1 - 31 provinces in China have announced their economic growth rates for 2025, with nearly half exceeding last year's targets. Tibet leads with a growth rate of 7%, followed by Gansu at 5.8% and Hebei and Henan at 5.6% [4] - Shenzhen Metro Group has provided an additional loan of 2.36 billion yuan to Vanke for debt repayment, with a three-year term and an interest rate of 2.34% [4] - Hang Seng Bank has officially delisted from the Hong Kong Stock Exchange, following a privatization plan by HSBC that was approved by the Hong Kong High Court [5] Group 2 - ByteDance has implemented new social media guidelines prohibiting employees from using company resources for personal profit, which is expected to significantly reduce the number of commercial accounts operated by employees [6] - Amazon announced a restructuring that will affect nearly 16,000 jobs, while continuing to recruit talent in key strategic areas [7] - Tesla plans to cease production of the Model S and Model X vehicles to focus on its "Optimus" robot production line, marking a shift towards a future based on autonomous driving [9] Group 3 - Meta reported fourth-quarter revenue of $59.89 billion, a 24% year-over-year increase, with advertising revenue also up by 24% [17] - Microsoft announced second-quarter revenue of $81.27 billion, with significant contributions from its cloud and productivity segments [17] - Tesla's fourth-quarter revenue was $24.90 billion, a 3% year-over-year decline, with net profit down 61% to $840 million [17]

Major Events - Cao Cao Travel (02643) plans to place up to 12 million shares at a discount of approximately 8.97%, aiming to raise about HKD 383 million [1] - Bio-Asia (02315) intends to increase capital in Jiangsu Bio-Asia through a debt-to-equity swap [1] - Beijing Energy International (00686) subsidiary plans to acquire 70% equity in Yangzhou Tai Run Low Carbon Technology Development for RMB 248 million [1] - Ruipu Lanjun (00666) intends to invest a total of RMB 50 million to acquire and increase capital in Fuan Guolong Nano Materials Co., Ltd. for 10.8696% equity [1] Financial Data - Qingdao Bank (03866) reported a net profit attributable to shareholders of RMB 5.188 billion for 2025, an increase of 21.66% year-on-year [1] - New Oriental-S (09901) reported a 42.3% year-on-year increase in net profit attributable to shareholders for the second quarter, reaching USD 45.5 million [1] - Huaxin Cement (06655) expects a net profit attributable to shareholders for 2025 to be between RMB 2.7 billion and RMB 2.95 billion, representing a year-on-year increase of 11.6% to 21.9% [1] - Nine Dragons Paper (02689) issued a profit warning, expecting a mid-term profit of approximately RMB 2.15 billion to RMB 2.25 billion, a year-on-year growth of 216.0% to 230.7% [1] - Yunzhisheng (09678) anticipates annual revenue from large model-related businesses to be approximately RMB 600 million to RMB 620 million, a year-on-year increase of about 1057% to 1095% [1] - Oriental Selection (01797) reported a mid-term profit attributable to shareholders of RMB 239 million, marking a turnaround from loss to profit [1] - Meilian Group (01200) reported a pre-tax profit of approximately HKD 460 million for the first 11 months of 2025, expecting significant profit growth for the 2025 fiscal year [1]

周三，新东方(EDU.US)盘前涨逾6%，报59.70美元。消息面上，新东方发布2026财年二季度未经审核财 务业绩，报告期内，新东方实现净营收11.91亿美元，同比上升14.7%；经营利润6630万美元，同比上升 244.4%；股东应占净利润4550万美元，同比上升42.3%。 ...

智通财经APP获悉，周三，新东方(EDU.US)盘前涨逾6%，报59.70美元。消息面上，新东方发布2026财 年二季度未经审核财务业绩，报告期内，新东方实现净营收11.91亿美元，同比上升14.7%；经营利润 6630万美元，同比上升244.4%；股东应占净利润4550万美元，同比上升42.3%。 ...

New Oriental Education & Technology Group (NYSE:EDU) Q2 2026 Earnings call January 28, 2026 08:00 AM ET Company ParticipantsFelix Liu - Executive DirectorSisi Zhao - Head of Investor RelationsStephen Yang - CFOYi Kuen Cheng - DirectorConference Call ParticipantsAlice Cai - VP of Equity Research AnalystDS Kim - Research AnalystElsie Sheng - Senior Equity AnalystLucy Yu - Investment Banking AnalystTimothy Zhao - Equity Research AnalystOperatorGood evening, and thank you for standing by for New Oriental's FY 2 ...

New Oriental Education & Technology Group (NYSE:EDU) Q2 2026 Earnings call January 28, 2026 08:00 AM ET Company ParticipantsFelix Liu - Executive DirectorSisi Zhao - Head of Investor RelationsStephen Yang - CFOYi Kuen Cheng - DirectorConference Call ParticipantsAlice Cai - VP of Equity Research AnalystDS Kim - Research AnalystLucy Yu - Investment Banking AnalystTimothy Zhao - Equity Research AnalystOperatorGood evening, and thank you for standing by for New Oriental's FY 2026 second quarter results earnings ...

Financial Data and Key Metrics Changes - Total net revenue grew 14.7% year-over-year to $1.19 billion [4] - Non-GAAP operating income increased 206.9% to $89.1 million [4] - Non-GAAP net income attributable to New Oriental rose 68.6% to $72.9 million [4] - Operating income was $66.3 million, representing a 264.4% increase year-over-year [12] - Net cash flow generated from operations was approximately $323.5 million [13] Business Line Data and Key Metrics Changes - K-9 educational business and high school tutoring business recorded accelerated revenue growth [5] - Overseas test prep business revenue increased by 4% year-over-year [5] - Overseas study consulting business saw a slight decrease of about 3% year-over-year [5] - Adults and university students business revenue increased by 13% year-over-year [5] - Revenue from non-academic tutoring grew 22% year-over-year [5] Market Data and Key Metrics Changes - The top 10 cities contributed over 60% of revenue from non-academic tutoring [6] - The top 10 cities contributed over 50% of revenue from intelligent learning systems and devices [6] - Domestic and international study tours were held in 55 cities, with the top 10 cities contributing over 50% of revenue [6] Company Strategy and Development Direction - The company is focused on operational efficiency and disciplined resource management to support sustainable profitability [4] - Continued investments in new education initiatives, including non-academic tutoring and intelligent learning systems, are expected to deliver solid results [5] - The company is exploring opportunities in the health and wellness sector for seniors [7] - The OMO (Online Merge Offline) teaching platform is being developed to provide advanced education services [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the business outlook, expecting total net revenue for Q3 FY 2026 to be in the range of $1,313.2 million to $1,348.7 million, representing a year-over-year increase of 11%-14% [17] - For the full fiscal year 2026, total net revenue guidance has been raised to $5,292.3 million to $5,488.3 million, reflecting an 8%-12% year-over-year increase [18] - Management emphasized a balanced approach to revenue and profitability growth while maintaining cost discipline [16] Other Important Information - The company announced a share repurchase program to buy back up to $300 million of its ADS or common shares [19] - As of January 27, 2026, approximately 1.6 million ADS had been repurchased for about $86.3 million [20] Q&A Session Summary Question: Request for breakdown on segment growth and key drivers for full year guidance - Management highlighted the K-12 business growth of around 20% year-over-year and overseas test prep growth of 4% year-over-year, with expectations for college business growth of 14-15% [24][25] Question: Expected margin expansion from merging test prep and consulting units - Management indicated that merging these units aims to provide better service and reduce costs, with more details expected in the next quarter [30][31] Question: Elaboration on margin expansion in Q2 - Management noted that margin expansion was driven by better utilization, higher operating leverage, and cost control, with optimism for continued margin improvement in the second half of the year [36] Question: Future trends for overseas business - Management acknowledged challenges but expressed confidence in the team's ability to gain market share, expecting low single-digit growth in the second half of the year [42] Question: Updates on AI initiatives - Management reported progress on new AI offerings and emphasized that AI is helping improve student retention and operational efficiency [56]

Core Viewpoint - New Oriental reported a significant increase in its financial performance for the second quarter of fiscal year 2026, indicating strong growth across various business segments [1] Financial Performance - Net revenue reached $1.191 billion, representing a year-on-year increase of 14.7% [1] - Operating profit was $66.3 million, showing a substantial year-on-year growth of 244.4% [1] - Net profit attributable to shareholders was $45.5 million, up 42.3% compared to the previous year [1] Business Segments - Revenue from overseas exam preparation business grew by approximately 4.1% year-on-year [1] - Domestic exam preparation business for adults and college students saw a year-on-year increase of about 12.8% [1] - New education business achieved a year-on-year growth of 21.6% [1] Student Engagement - Non-academic tutoring courses have been launched in around 60 cities, attracting approximately 1.058 million students [1] - Smart learning systems and devices have been implemented in about 60 cities, with active paying users reaching 352,000 [1]

新东方-S(09901)发布截至2025年11月30日止的2026财年第二季度财务业绩公告，该集团2026财年第二 季度的净营收同比上升14.7%至11.91亿美元;经营利润同比上升244.4%至6630万美元;新东方股东应占净 利润同比上升42.3%至4550万美元。 于2026财年上半年，净营收约27.14亿美元，同比增长9.7%。经营利润约3.77亿美元，同比增长20.7%。 新东方股东应占净利润约2.86亿美元，同比增长3.2%。 新东方董事会执行主席俞敏洪表示："我们很高兴看到公司营收在2026财年第二季度同比增长加速至 14.7%。出国考试准备业务的收入同比增长约4.1%;同时，针对成人及大学生的国内考试准备业务取得同 比约12.8%的增长，而新教育业务更实现21.6%的同比增长。非学科类辅导业务课程已在约60个城市开 设，本季度吸引约105.8万名学生参与。同时，我们的智慧学习系统及设备已在约60个城市投入使用， 活跃付费用户数量达到约35.2万名。未来我们将进一步聚焦核心教育业务，持续提升教学质量与产品品 质，同时不断优化成本结构与运营效率，实现高质量、高效率、可持续的发展。我们已启动全方位的 ...