Group 1 - U.S. stock futures are higher, with Dow futures gaining over 200 points [1] - New Oriental Education & Technology Group Inc. reported weak quarterly earnings, with adjusted earnings of 22 cents per share, missing the analyst consensus estimate of 30 cents per share [1] - The company's quarterly sales were $1.04 billion, slightly beating the analyst consensus estimate of $1.03 billion [1] Group 2 - New Oriental Education & Technology Group shares fell 16.2% to $50.98 in pre-market trading [2] - TechTarget, Inc. shares tumbled 19.5% to $14.00 in pre-market trading [3] - Baird Medical Investment Holdings Limited shares fell 18.2% to $7.24 after a previous jump of 63% [3] - Ranpak Holdings Corp. shares dipped 18.2% to $5.21 in pre-market trading [3] - Rayonier Advanced Materials Inc. shares declined 17.1% to $6.24 in pre-market trading [3] - SWK Holdings Corporation shares dipped 14.3% to $14.00 in pre-market trading [3] - Walgreens Boots Alliance, Inc. shares fell 6.8% to $11.66 following a lawsuit from the U.S. Justice Department [3] - Contineum Therapeutics, Inc. shares fell 6.8% to $11.60 in pre-market trading [3] - Tile Shop Holdings, Inc. shares fell 3.6% to $6.78 in pre-market trading [3]

Exhibit 99.1 New Oriental Announces Results for the Second Fiscal Quarter Ended November 30, 2024 BEIJING, Jan. 21, 2025 /PRNewswire/ – New Oriental Education & Technology Group Inc. (the "Company" or "New Oriental") (NYSE: EDU/ 9901.SEHK), a provider of private educational services in China, today announced its unaudited financial results for the second fiscal quarter ended November 30, 2024, which is the second quarter of New Oriental's fiscal year 2025. Financial Highlights for the Second Fiscal Quarter ...

Investment Rating - The report assigns a "Buy" rating with a target price of HKD 62.84, based on a FY25 PE of 25X [3]. Core Views - The K12 education training policy is improving, with a significant reduction in offline training institutions, leading to a shift from academic tutoring to quality education training. The high school student population is expected to grow, and the declining college admission rates will drive the recovery of the high school academic training market [2]. - The company's brand strength remains robust, with revenue and capacity recovering to industry-leading levels. The company is expected to benefit from the recovery of profit margins as capacity increases [2]. - Future growth drivers include strong demand for quality training and learning devices, recovery in overseas study services, and potential growth in cultural tourism and e-commerce businesses [2][3]. Summary by Sections Company Overview - The company has been deeply involved in the education sector for 31 years, evolving from providing exam preparation for students studying abroad to a comprehensive education group covering various services including K12 training, overseas study services, vocational education, and online education [1][15]. K12 Education - The K12 education sector is experiencing favorable policies and effective supply clearing, with a 96.7% reduction in offline academic training institutions by January 2025. The demand for quality training is expected to grow as the market shifts from academic tutoring [2][36]. - The company is well-positioned to capture the growing demand for quality education and learning devices, with a significant increase in the number of students participating in quality education programs [2][45]. Overseas Study Services - The demand for overseas study services is recovering, with the market expected to stabilize as the supply of study institutions improves. The company holds a leading position in this sector [2][3]. Other Businesses - The cultural tourism business is anticipated to become a new growth curve, while the e-commerce segment is expected to recover from short-term challenges and return to reasonable growth in the medium to long term [2][3]. Profit Forecast and Valuation - The report forecasts Non-GAAP net profits of USD 528 million, USD 692 million, and USD 887 million for FY25, FY26, and FY27, respectively, with year-on-year growth rates of 44.5%, 31.1%, and 28.2% [3][6].

Financial Performance - For the second quarter of fiscal year 2025, net revenue increased by 19.4% year-over-year to $1,038.6 million, with net revenue excluding certain product lines rising by 31.3% to $894.2 million[6]. - Operating profit for the second quarter decreased by 9.8% year-over-year to $19.3 million, while operating profit excluding certain product lines increased by 102.5% to $25.0 million[7]. - Net profit attributable to New Oriental shareholders rose by 6.2% year-over-year to $31.9 million[7]. - For the first half of fiscal year 2025, net revenue increased by 25.6% year-over-year to $2,474.1 million[8]. - The company reported a 41.9% year-over-year increase in net profit attributable to New Oriental shareholders for the first half, reaching $277.4 million[8]. - The company achieved a Non-GAAP operating profit of $27.6 million in the second quarter, with a GAAP operating profit margin of 2.8%, reflecting a year-over-year increase of 100 basis points[11]. - The Non-GAAP net profit attributable to New Oriental shareholders for the quarter was $35.5 million, a decrease of 29.1% year-over-year[21]. - Net revenue for the three months ended November 30, 2024, was $1,038,636, an increase of 19.5% compared to $869,600 for the same period in 2023[49]. - Operating profit for the same period was $19,255, representing a decrease of 9.8% from $21,342 in the prior year[49]. - Net profit attributable to shareholders was $31,931, up 6.2% from $30,066 in the previous year[49]. - Net revenue for the six months ended November 30, 2024, was $2,474,052, an increase from $1,969,621 in 2023, representing a growth of approximately 25.6%[60]. - Operating profit for the same period was $312,405, compared to $226,466 in 2023, reflecting a year-over-year increase of about 37.9%[60]. - Net profit attributable to shareholders was $277,361, up from $195,452 in the previous year, indicating a growth of approximately 41.9%[60]. Operational Efficiency - The company plans to continue focusing on improving operational efficiency and teaching space utilization in the second half of the fiscal year[11]. - The operating profit for the quarter was $19.3 million, a decline of 9.8% year-over-year, resulting in an operating profit margin of 1.9%[18]. - The company reported a non-GAAP operating profit margin of 2.7%, down from 5.9% in the prior year[51]. - The operating profit margin improved to 12.6% from 11.5% in the previous year, indicating enhanced operational efficiency[62]. Cash and Investments - Cash and cash equivalents, along with short-term investments, totaled approximately $4.8 billion at the end of the quarter[11]. - New Oriental's cash and cash equivalents as of November 30, 2024, amounted to $1,418.2 million, with deferred revenue increasing by 19.2% year-over-year to $1,960.6 million[23]. - Cash and cash equivalents increased to $1,418.2 million from $1,389.4 million, reflecting a growth of approximately 2.1%[44]. - Short-term investments decreased to $1,951.4 million from $2,065.6 million, a decline of about 5.5%[44]. - The ending cash and cash equivalents balance was $1,611,073, down from $2,120,746 in 2023, a decrease of approximately 24.0%[68]. Strategic Focus - The company emphasizes the importance of Non-GAAP financial metrics to provide additional insights into operational performance and liquidity[41]. - The management highlighted the ongoing risks and uncertainties in the private education sector in China, which may impact future performance[38]. - The company is focused on maintaining and enhancing the "New Oriental" brand while ensuring quality in teaching and services[38]. - Future strategies include potential market expansion and acquisitions to enhance service offerings and competitive positioning[38]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[73]. - The company is focused on enhancing its operational efficiency and exploring potential mergers and acquisitions to strengthen its market position[73]. Assets and Liabilities - As of November 30, 2024, total assets amounted to $7,634.5 million, an increase from $7,531.7 million as of May 31, 2024[44]. - Total liabilities increased to $3,652,857 as of November 30, 2024, compared to $3,482,659 as of May 31, 2024, reflecting a growth of 4.9%[46]. - Total equity decreased to $3,981,631 from $4,049,014, a decline of 1.7%[46]. - The company’s total assets were reported at $7.531673 billion, with total liabilities of $3.482659 billion[79]. - Shareholders' equity totaled $3.775934 billion, indicating a strong financial position[79]. Accounting Standards - The financial statements were prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP), with notable differences from IFRS[73]. - Adjustments under International Financial Reporting Standards (IFRS) showed a difference in reported figures, with significant impacts on revenue and expenses[73]. - The company recognizes compensation expenses using the graded attribution method after estimating forfeitures during the necessary service period according to international financial reporting standards[85]. - Under US GAAP, the amortization of right-of-use assets and interest expenses related to lease liabilities are recorded as lease expenses, resulting in a straight-line recognition effect in the profit and loss statement[85]. - The company applies the straight-line method for amortizing right-of-use assets, while interest expenses related to lease liabilities are measured at amortized cost according to international financial reporting standards[86].

Financial Performance - New Oriental reported net revenues of US$1,038.6 million for the second fiscal quarter of 2025, a 19.4% increase year over year [8][12] - Operating income decreased by 9.8% year over year to US$19.3 million, while non-GAAP operating income fell by 45.8% to US$27.6 million [16][19] - Net income attributable to New Oriental increased by 6.2% year over year to US$31.9 million, with basic and diluted net income per ADS at US$0.20 and US$0.19 respectively [18][19] Revenue Breakdown - Total net revenues, excluding revenues from East Buy private label products and livestreaming business, increased by 31.3% year over year to US$894.2 million [8][12] - The overseas test preparation and overseas study consulting business grew by approximately 21.1% and 31.0% year over year [7] - Domestic test preparation targeting adults and university students recorded a growth of approximately 34.9% year over year [9] Operating Costs and Expenses - Operating costs and expenses for the quarter were US$1,019.4 million, representing a 20.2% increase year over year [14] - Non-GAAP operating costs and expenses, excluding share-based compensation, were US$1,011.1 million, a 23.5% increase year over year [14] - Total share-based compensation expenses decreased by 71.8% to US$8.3 million [15] Cash Flow and Balance Sheet - Net operating cash inflow for the second fiscal quarter was approximately US$313.3 million, with capital expenditures of US$60.6 million [20] - As of November 30, 2024, cash and cash equivalents totaled approximately US$1.4 billion, with total assets amounting to US$7.6 billion [21][44] Shareholder Returns - The board approved a special cash dividend of US$0.06 per common share, totaling approximately US$100 million distributed [10] - A share repurchase program was extended, increasing the authorized repurchase amount from US$400 million to US$700 million [11] Future Outlook - New Oriental expects total net revenues for the third quarter of fiscal year 2025 to be in the range of US$1,007.3 million to US$1,032.5 million, reflecting a year-over-year increase of 18% to 21% [31]

上 市 公 司 社会服务 2025 年 01 月 07 日 新东方-S (09901) 联系人 黄哲 (8621)23297818× huangzhe@swsresearch.com 投资要点： —— 网点持续扩张，静待教育业务增长提速 报告原因：强调原有的投资评级 买入（维持） | 市场数据： | 2025 年 01 月 07 日 | | --- | --- | | 收盘价（港币） | 48.70 | | 恒生中国企业指数 | 7049.71 | | 52 周最高/最低（港币） | 77.05/41.80 | | H 股市值（亿港币） | 828.87 | | 流通 H 股（百万股） | 1,701.99 | | 汇率（人民币/港币） | 1.0816 | 一年内股价与基准指数对比走势： 资料来源：Bloomberg 证券分析师 黄哲 A0230513030001 huangzhe@swsresearch.com 我们预计新东方 25 财年第二季度（2QFY25，2024.9-2024.11）收入 9.93 亿美元，同比增长 14.2%，Non-GAAP 归母净利润 0.53 亿美元，同比小幅增长 4.7% ...

Investment Rating - The report maintains a "Buy" rating for New Oriental Education Technology (9901 HK) with a target price of HKD 75.00, indicating a potential upside of 53.8% from the current price of HKD 48.75 [1][4][9]. Core Insights - The overall performance of New Oriental is expected to be influenced by uncertainties surrounding the Oriental Selection business, but the education and cultural tourism segments remain robust. The contribution of Oriental Selection to overall profits is deemed minor [1][2]. - The revenue contribution from Oriental Selection for the fiscal year 2025 is adjusted down to 12% from the previous 15%, with revenue forecasts for Oriental Selection set at USD 623 million for FY25 and USD 710 million for FY26 [2][3]. - The education and cultural tourism businesses are projected to grow at a rate of 31% for FY25, with an operational profit margin improvement of 1 percentage point to 13%, translating to approximately USD 580 million [2][3]. Financial Projections - Revenue for FY25 is forecasted at USD 5.079 billion, with a year-on-year growth of 31%. The operational profit margin is expected to improve to 13% [2][10]. - The adjusted net profit for FY25 is projected at USD 553 million, with a net profit margin of 10.9% [3][10]. - The report anticipates a revenue of USD 1.007 billion for Q2 FY25, reflecting a year-on-year increase of 28% [2][6]. Key Financial Metrics - The gross margin is expected to improve to 54.9% in FY25, with operational profit margins projected to reach 10.9% [3][10]. - The adjusted operating profit for FY25 is estimated at USD 551 million, with a significant increase in net profit expected in subsequent years [3][10]. - The report highlights a projected increase in cash flow from operating activities, expected to reach USD 1.138 billion by FY25 [10].

Investment Rating - The report maintains a "Buy" rating for the company [1]. Core Views - The core education business continues to show growth, with a revenue increase of 33.5% year-on-year to $1.278 billion, aligning with the company's previous performance guidance [1]. - The company expects net revenue for FY25Q2 to be between $850 million and $870 million, representing a year-on-year growth of 25% to 28% [1]. - The company has a strong cash reserve totaling $4.9 billion, indicating sufficient liquidity for future operations [1]. Financial Performance Summary - For FY25Q1, net income reached $2.65 billion, a year-on-year increase of 39.8% [1]. - The number of schools and learning centers increased to 1,089, with a net addition of 64 centers [1]. - The paid user base grew by 78.5% year-on-year to 3.23 million [1]. Revenue and Profitability - The company's gross margin for FY25Q1 was 53.3%, a 6.9 percentage point increase year-on-year [1]. - Non-GAAP operating profit margin was reported at 24.4%, a decrease of 2.2 percentage points year-on-year [1]. - The company anticipates a revenue growth of approximately 30% for the full fiscal year [1]. Market Position and Future Outlook - The company is expected to maintain a robust growth trajectory in its core education business, with a projected expansion of teaching points by 20% year-on-year [1]. - The target price for the company's stock is set at $89.0, reflecting a positive outlook despite potential fluctuations in profit margins [1]. - The company is focusing on expanding its national teaching network and enhancing its educational services [1].

Investment Rating - The report maintains a "Recommended" rating for New Oriental-S (09901.HK) with a target price of 79 HKD, while the current price is 48.5 HKD [1]. Core Insights - The company reported a total revenue of 1.435 billion USD for FY25Q1, representing a year-over-year increase of 31%. The Non-GAAP net profit attributable to shareholders was 265 million USD, up 40% year-over-year. The guidance for FY25Q2 revenue (excluding selection) is projected to be between 851 million and 872 million USD, indicating a year-over-year growth of 25%-28% [1]. - The core education business revenue (excluding selection) grew by 33.5% year-over-year, aligning with previous guidance. The company also saw significant growth in its cultural tourism business, with a revenue increase of 221% year-over-year in Q1 [1]. - The company is expanding its capacity with a total of 1,089 schools and learning centers as of FY25Q1, a 37% increase year-over-year. Deferred revenue reached 1.73 billion USD, up 24% year-over-year [1]. Summary by Sections Revenue Performance - FY25Q1 total revenue was 1.435 billion USD (YOY +31%), closely matching the expected 1.442 billion USD. The core education business revenue grew by 33.5% YOY, with notable increases in various segments: overseas exam preparation (YOY +19%), overseas consulting (YOY +21%), domestic exam preparation for adults and college students (YOY +30%), and new education businesses (YOY +50%) [1]. Profitability - The company achieved a Non-GAAP operating profit of 300 million USD (YOY +23%) with an operating profit margin (OPM) of 20.9%, slightly above the expected 20.6%. The core education business OPM was 24.4%, reflecting a year-over-year improvement of 2.2 percentage points [1]. Capacity Expansion - As of FY25Q1, the company operated 1,089 schools and learning centers, a 37% increase YOY. Non-academic enrollment reached 480,000 (YOY +11%), and active paying users for the intelligent learning system and devices grew by 79% to 320,000 [1]. Financial Forecast - The company expects revenues for 2025, 2026, and 2027 to be 5.208 billion, 6.232 billion, and 7.600 billion USD, respectively, with year-over-year growth rates of 20.7%, 19.7%, and 22.0%. Adjusted net profits are projected at 435 million, 610 million, and 811 million USD for the same years, with growth rates of 40.4%, 40.2%, and 33.1% [2][5].

Investment Rating - The report maintains an "Overweight" rating for New Oriental (EDU N) [2] Core Views - New Oriental's FY25Q1 revenue reached $1 44 billion, a year-over-year increase of 30 5%, with Non-GAAP net income attributable to shareholders at $265 million, up 39 8% year-over-year [1] - The company's core education business operating margin improved to 23 7%, a 370bps increase year-over-year, while the Non-GAAP operating margin stood at 24 4%, up 220bps [2] - New Oriental's education new business revenue grew by 49 8% year-over-year, with non-academic class enrollments reaching 484,000, a 10 5% increase [3] - The company's overseas test preparation and study abroad consulting businesses saw revenue growth of 18 8% and 20 7% respectively, while adult and college domestic test preparation business revenue increased by 30 4% [3] Business Performance - New Oriental's total number of schools and learning centers increased to 1,089, with 64 new learning centers added in the quarter [2] - The company's active paying users for its intelligent learning system reached 323,000, a 78 5% year-over-year increase [2] - New Oriental's cash and cash equivalents balance stood at $1 15 billion, supporting the company's expansion in the education business [2] Financial Projections - The report forecasts adjusted net income attributable to shareholders for 2025-2027 at $502 million, $642 million, and $740 million, representing year-over-year growth rates of 31 8%, 27 9%, and 15 3% respectively [3] - Revenue projections for 2025-2027 are $5 33 billion, $6 49 billion, and $7 40 billion, with year-over-year growth rates of 23 6%, 21 7%, and 14 1% [4] - The company's PE ratios for 2025-2027 are projected at 20x, 16x, and 14x respectively [3] Industry Analysis - The education industry continues to show strong demand, particularly in the non-academic and test preparation segments [3] - New Oriental's multi-line strategy post the "Double Reduction" policy has entered a new growth cycle, with stable market share and continuous growth in new store openings [3]