Core Insights - The company reported a 6% year-on-year revenue increase to $1.523 billion for Q1 of FY2026, exceeding expectations by 1% [1] - Adjusted operating profit was approximately $336 million, with an operating margin of 22%, reflecting a 1 percentage point year-on-year expansion [1] - Adjusted net profit attributable to shareholders was $258 million, corresponding to a net profit margin of 17% [1] Performance Highlights - The study abroad-related business performed better than expected, with preparatory and consulting revenues increasing by 1% and 2% year-on-year, compared to a previous forecast of -5% [1] - The college/adult education segment maintained a robust growth rate, with a 14% year-on-year revenue increase [1] - The K9 new business segment saw a 15% year-on-year revenue growth, with learning machines outperforming non-subject areas [1] - Non-subject training enrollment increased by 10% year-on-year to 530,000, while paid users of the intelligent learning system and devices rose by 40% year-on-year to 452,000 [1] - The number of teaching points reached 1,347, an increase of 29 points or 2% from the previous quarter, within the company's expansion pace [1] - The company announced a cash dividend of $190 million and a $300 million share repurchase plan, which is better than previous expectations [1] FY2026 Outlook - Management maintains the FY2026 group revenue guidance, expecting a year-on-year growth rate of 5-10%, with Q2 revenue growth projected between 9-12%, compared to a previous expectation of 9% [2] - Concerns regarding business growth are alleviated by improved retention rates in K12 business and product quality enhancements, which are expected to stabilize revenue growth [2] - The study abroad-related business may remain under pressure, but is expected to benefit from a projected over 25% year-on-year increase in youth language training revenue and expansion in non-English-speaking countries' consulting services [2] - Overall revenue growth for FY2026/27/28 is anticipated to exceed 10%, with a continued trend of profit margin expansion [2] Valuation - The company remains optimistic about the demand and growth prospects for K12 education-related businesses, with steady revenue growth and potential for profit margin optimization [2] - Despite recent impacts on the study abroad-related business, it continues to lead the industry [2] - Using the SOTP valuation method, the company assigns a 15x P/E ratio for K12 business and an 8x P/E ratio for study abroad business, with corresponding profit growth rates of +25% and -7% [2] - The target price has been raised to HKD 55 / USD 71 (EDU US/Buy) from HKD 46 / USD 59, maintaining a buy rating [2]

Core Viewpoint - The U.S. stock market saw a collective rise in the three major indices, indicating positive investor sentiment and market performance [1] Group 1: Major Indices Performance - The Nasdaq increased by 0.65% [1] - The Dow Jones rose by 0.48% [1] - The S&P 500 index gained 0.37% [1] Group 2: Notable Stock Movements - Tesla's stock surged over 4% [1] - Intel's shares increased by more than 3% [1] - Google's stock rose by over 2% [1] Group 3: Chinese Concept Stocks - The Nasdaq Golden Dragon China Index saw a slight increase of 0.15% [1] - Futu Holdings experienced a rise of over 4% [1] - New Oriental and Xpeng Motors both fell by more than 3% [1]

Core Viewpoint - The company is experiencing a gradual stabilization in its core business, leading to a significant improvement in shareholder returns, with a target price adjustment to $74.5 or HKD 57.9, maintaining a buy rating [1] Performance Overview - For FY26Q1, the company reported a net revenue of $1.52 billion, a year-on-year increase of 6.1%, slightly exceeding previous guidance [1] - Operating profit reached $310 million, up 6% year-on-year, while Non-GAAP operating profit was $336 million, reflecting an 11.3% increase [1] - The net profit attributable to shareholders was $240 million, down 1.9% year-on-year, primarily due to dividend withholding tax and fluctuations in other income [1] - The Non-GAAP net profit attributable to shareholders was $258 million, a decrease of 1.6% year-on-year, with a Non-GAAP operating profit margin of 22.0%, up 1.0 percentage points year-on-year [1] Education Business Performance - In FY26Q1, the overseas exam preparation and study abroad consulting businesses grew by 1.0% and 2.0% year-on-year, respectively, with rapid growth in overseas youth exam training partially offsetting declines in adult exams [2] - The university and adult exam business saw a year-on-year growth of 14.4% [2] - New business revenue increased by 15.3% year-on-year, with non-academic tutoring registrations reaching 530,000, a 9.5% increase [2] - The number of active paying users for smart learning systems and devices reached 452,000 in Q4, a year-on-year increase of 39.9% [2] FY26Q2 and FY26 Outlook - The company expects FY26Q2 net revenue to be between $1.132 billion and $1.163 billion, representing a year-on-year growth of 9% to 12% [3] - The net revenue forecast for FY26 remains unchanged, with expected total revenue between $5.145 billion and $5.39 billion, indicating a year-on-year growth of 5% to 10% [3] Shareholder Return Plan - In July 2025, the company approved a three-year shareholder return plan, committing to return no less than 50% of the previous fiscal year's net profit to shareholders starting from FY26 [4] - The announced shareholder return plan for FY26 includes a cash dividend of $190 million (to be paid in two installments) and a $300 million share buyback within the next 12 months, resulting in a total return of approximately $490 million [4]

Core Viewpoint - First Shanghai has given New Oriental-S (09901, EDU.US) a target price of $74.5 / HKD 57.9 based on a 25x PE for FY26E net profit, maintaining a buy rating due to the stabilization of core business and significant shareholder returns [1] Group 1: Performance Overview - For FY26Q1, the company reported a net revenue of $1.52 billion, a year-on-year increase of 6.1%, slightly exceeding previous guidance [2] - Operating profit reached $310 million, up 6% year-on-year, while Non-GAAP operating profit was $336 million, reflecting an 11.3% increase [2] - The net profit attributable to shareholders was $240 million, down 1.9% year-on-year, primarily due to dividend withholding tax and fluctuations in other income [2] Group 2: Education Business Performance - In FY26Q1, the overseas exam preparation and study abroad consulting businesses grew by 1.0% and 2.0% year-on-year, respectively, with youth exam training showing faster growth [3] - The university and adult exam business saw a year-on-year growth of 14.4% [3] - New business revenue increased by 15.3% year-on-year, with non-academic tutoring registrations reaching 530,000, a 9.5% increase [3] - The active paying users for the smart learning system and devices reached 452,000, up 39.9% year-on-year [3] Group 3: FY26Q2 and FY26 Outlook - The company expects FY26Q2 net revenue to be between $1.132 billion and $1.163 billion, representing a year-on-year growth of 9% to 12% [4] - For FY26, the total net revenue is projected to be between $5.145 billion and $5.39 billion, with a year-on-year growth of 5% to 10% [4] Group 4: Shareholder Return Plan - In July 2025, the company approved a three-year shareholder return plan, committing to return no less than 50% of the previous fiscal year's net profit to shareholders starting from FY26 [5] - The shareholder return plan includes a cash dividend of $190 million (to be paid in two installments) and a $300 million buyback within the next 12 months, resulting in a total return rate of approximately 5% [5] - The total planned return through dividends and buybacks amounts to $490 million [5]

Core Viewpoint - The report from CMB International raises the target price for New Oriental Education & Technology Group (09901) by 19.6% from HKD 46 to HKD 55, maintaining a "Buy" rating due to positive outlook on K12 education and training business demand and growth prospects [1] Group 1: Financial Performance - For Q1 of fiscal year 2026, New Oriental reported a revenue increase of 6% year-on-year to USD 1.523 billion, exceeding the bank's expectations by 1% [1] - Adjusted operating profit was approximately USD 336 million, with an operating profit margin of 22%, expanding by 1 percentage point compared to the same period last year [1] - Adjusted net profit attributable to shareholders was USD 258 million, corresponding to a net profit margin of 17% [1] Group 2: Business Segments - The study highlights that the study abroad-related business, although recently impacted, still leads the industry, with consulting and preparatory income growing by 1% and 2% year-on-year, respectively, contrary to previous expectations of a 5% decline [1] - The university and adult education segments maintained steady growth, with a revenue increase of 14% year-on-year, while K9 new business revenue grew by 15%, with learning devices outperforming non-academic subjects [1] Group 3: Future Guidance - Management maintains the revenue guidance for fiscal year 2026, expecting a year-on-year growth rate of 5-10%, with Q2 revenue growth projected between 9-12%, compared to previous expectations of 9% [2] - The K12 business's retention rates and product quality improvements are expected to drive revenue recovery within a stable growth range, while ongoing efficiency measures are likely to support stable or slightly increased operating profit margins [2] - The overall revenue growth rate for the company is expected to exceed 10% for fiscal years 2026, 2027, and 2028, with a consistent trend of profit margin expansion [2]

Core Viewpoint - The report from CMB International raises the target price for New Oriental-S (09901) by 19.6% from HKD 46 to HKD 55, maintaining a "Buy" rating, driven by positive outlook on K12 education and training business demand and growth prospects [1] Group 1: Financial Performance - For Q1 of FY2026, New Oriental reported a revenue increase of 6% year-on-year to USD 1.523 billion, exceeding the bank's expectations by 1% [1] - Adjusted operating profit was approximately USD 336 million, with an operating profit margin of 22%, expanding by 1 percentage point compared to the same period last year [1] - Adjusted net profit attributable to shareholders was USD 258 million, corresponding to a net profit margin of 17% [1] Group 2: Business Segments - The study indicates that the study abroad-related business, although recently impacted, remains a leader in the industry, with better-than-expected performance [1] - The K9 new business saw a revenue increase of 15% year-on-year, while the university and adult business maintained a steady growth rate with a 14% revenue increase [1] - The report highlights that the revenue from preparatory and consulting services grew by 1% and 2% year-on-year, respectively, contrary to previous expectations of a 5% decline [1] Group 3: Future Guidance - Management maintains a revenue growth guidance of 5-10% for FY2026, with Q2 revenue growth expected to be in the range of 9-12%, compared to previous expectations of 9% [2] - The K12 business's continuation rate and product quality improvements are anticipated to drive revenue recovery within a stable growth range [2] - The overall revenue growth rate for FY2026/2027/2028 is expected to exceed 10%, with a consistent trend of profit margin expansion [2]

Investment Rating - The report assigns a "Buy" rating to New Oriental Education Technology (9901 HK) with a target price of HKD 55.00, indicating a potential upside of 19.9% from the current price of HKD 45.88 [4][8][15]. Core Insights - The report highlights that K12 education may accelerate, boosting shareholder returns and enhancing confidence in the company's growth prospects [2]. - Financial forecasts indicate a revenue growth trajectory, with expected revenues of USD 4.9 billion in 2025, growing to USD 6.875 billion by 2028, reflecting a compound annual growth rate (CAGR) of approximately 12% [3][16]. - The net profit is projected to increase from USD 372 million in 2025 to USD 792 million by 2028, with a notable increase in earnings per share (EPS) from USD 0.32 in 2025 to USD 0.45 in 2028 [3][16]. Financial Overview - Revenue (in million USD) is forecasted as follows: - 2024: 4,314 - 2025: 4,900 - 2026E: 5,413 - 2027E: 6,136 - 2028E: 6,875 - Year-on-year growth rates are expected to be 43.9% in 2024, 13.6% in 2025, and gradually declining to 12.0% by 2028 [3][16]. - Net profit (in million USD) projections are: - 2024: 310 - 2025: 372 - 2026E: 428 - 2027E: 481 - 2028E: 792 [3][16]. Valuation - The report employs a Sum-of-the-Parts (SOTP) valuation method, assigning a price-to-earnings (P/E) ratio of 15x for K12 business and 8x for study abroad business, reflecting expected profit growth rates of +25% and -7% respectively [7][8]. - The target price was adjusted upwards to HKD 55.00 from a previous HKD 46.00, maintaining a "Buy" rating based on the strong demand and growth outlook for K12 education services [7][8].

Core Insights - The 17th New Oriental Family Education Forum was held in Beijing, focusing on the theme "From 'Track' to 'Wilderness': Reconstructing the Life Framework of Children's Growth" [1] - The forum gathered top experts and practitioners from various fields to address educational anxieties and explore diverse paths for children's comprehensive and healthy development [1] Group 1: Key Discussions - Notable figures, including writer and psychologist Bi Shumin and New Oriental founder Yu Minhong, engaged in deep discussions on the core theme, emphasizing the importance of mental order and life values [1] - Professor Zhang Zhiyong, a member of the National Committee of the Chinese People's Political Consultative Conference, highlighted the essential elements of family education, stating that "life education is the 'root' of family education" and "moral education is the 'soul'" [3] Group 2: Challenges and Solutions - The forum addressed the current challenges in family education and youth development, aiming to provide solutions to educational competition and reconstruct the growth ecosystem [3] - A consensus emerged that the transition from "track" to "wilderness" requires a collaborative systemic change involving families, schools, and society, urging parents to overcome anxiety and embrace a more relaxed and wise approach to education [3]

Core Insights - Goldman Sachs reported that New Oriental's management highlighted several key points during the Q1 earnings call for FY2026, including expectations for accelerated revenue growth in K12 business for Q2, an annual expansion in operating profit margin, and shareholder returns next year not lower than this year's level [1] Revenue and Profit Forecasts - Goldman Sachs maintained its revenue forecasts for New Oriental for FY2026 to FY2028, while raising the non-GAAP net profit forecast by 4% to reflect an 8% increase in non-GAAP operating profit, partially offset by reduced interest income and increased income tax [1] - The target price for New Oriental's H-shares was raised from HKD 42 to HKD 47, and the target price for its US shares was increased from USD 54 to USD 60 [1] Eastern Selection Adjustments - The revenue forecast for Dongfang Zhenxuan was lowered by 12% to 13%, but the adjusted net profit forecast was only reduced by 2% to 3%, reflecting an improvement in profit margin expectations [1] - The rating for Dongfang Zhenxuan was set to "Sell," with the target price increased from HKD 9 to HKD 10.2 [1]

Core Insights - The company reported a revenue of $1.523 billion for FY26Q1, a year-on-year increase of 6.1%, exceeding the previous guidance [1] - Non-GAAP operating profit reached $336 million, up 11.3% year-on-year, with an operating profit margin of 22%, an increase of 1 percentage point [1] - The company announced a three-year shareholder return plan, committing to return over 50% of the previous year's net profit through cash dividends and share buybacks starting FY26 [2] Financial Performance - The company’s revenue for FY26Q1 was $1.523 billion, surpassing the upper limit of the previous guidance [1] - Non-GAAP operating profit was $336 million, reflecting an 11.3% increase year-on-year, with a profit margin of 22% [1] - The net profit attributable to shareholders was $241 million, a slight decrease of 1.9% year-on-year, primarily due to dividend withholding tax [1] Business Segments - The K12 and university business segments showed significant recovery, with new education business revenue growing by 15.3% year-on-year [1] - Non-academic courses have been launched in approximately 60 cities, attracting around 530,000 students [1] - The adult and university exam preparation business grew by about 14.4% year-on-year, continuing the recovery trend in exam preparation and vocational training [1] Shareholder Returns - The company plans to distribute approximately $190 million in cash dividends this year, equating to $0.12 per share [2] - A maximum of $300 million in share buybacks is planned over the next 12 months, totaling a return of about 132% of FY25 net profit [2] - The projected dividend yield is approximately 2.0% [2] Future Outlook - Management guidance for FY26Q2 revenue is between $1.132 billion and $1.163 billion, representing a year-on-year growth of 9-12% [2] - For the full FY26, revenue is expected to be between $5.145 billion and $5.390 billion, indicating a growth of 5-10% [2] - The company aims to enhance AI teaching and digital efficiency, optimizing course experience and operational efficiency, which is expected to steadily improve profitability [2] Valuation - The projected net profits for FY26-28 are estimated at $450 million, $492 million, and $531 million respectively [3] - Using a sum-of-the-parts valuation method, the education segment is valued at approximately HKD 769 billion based on a 22x P/E ratio [3] - The total group valuation is approximately HKD 898 billion, translating to a target price of HKD 56.86 per share, maintaining a "buy" rating [3]