Revenue and Financial Performance - Revenues from consolidated affiliated entities accounted for 99.6%, 99.5%, and 99.2% of total net revenues for fiscal years ended May 31, 2022, 2023, and 2024, respectively[17] - Net revenues for 2024 increased to $4,313.586 million, up from $2,997.760 million in 2023[39] - Operating income for 2024 was $350.425 million, compared to $190.046 million in 2023[39] - Net income attributable to shareholders for 2024 was $309.591 million, up from $177.341 million in 2023[39] - Third-party net revenues increased to $4,313.586 million in 2024, up from $2,997.760 million in 2023, reflecting a growth of approximately 43.9%[44][45] - Net income for 2024 was $325.218 million, compared to $235.363 million in 2023, showing a 38.2% increase[44][45] - Total operating costs and expenses rose to $3,963.161 million in 2024 from $2,807.714 million in 2023, an increase of 41.2%[44][45] - Income from subsidiaries and VIEs was $538.168 million in 2024, up from $313.226 million in 2023, a 71.8% increase[44][45] - Other income, net, rose to $143.416 million in 2024 from $118.485 million in 2023, a 21.0% increase[44][45] - Net revenues decreased from $3,105.2 million in FY2022 to $2,997.8 million in FY2023, then increased to $4,313.6 million in FY2024[86] - The company's operating margin turned positive for the fiscal year ended May 31, 2023, and continued to improve for the fiscal year ended May 31, 2024, but there is no assurance that this trend will continue[102] - The company experienced a loss from fair value change of long-term investments of US$0.9 million in the fiscal year ended May 31, 2023, but recorded a gain of US$19.0 million in the fiscal year ended May 31, 2024[113] Business Operations and Strategy - The company operates in China through PRC subsidiaries, VIEs, and their subsidiaries/schools, with contractual arrangements controlling business operations[17] - The company relies on contractual arrangements rather than direct ownership to control VIEs, which may pose risks in conflicts of interest or legal disputes[26] - The company is shifting focus towards non-K-9 educational products and services, including test preparation courses, overseas study consulting, and educational materials[68] - East Buy, the company's e-commerce platform, made notable progress in private label products and livestreaming e-commerce business in fiscal years 2023 and 2024[68] - East Buy established an e-commerce platform for agricultural and other products through livestreaming activities[68] - The company is exploring business opportunities in the culture and tourism market[68] - The company is investing in new business initiatives such as non-academic tutoring, intelligent learning systems, and study tours[68] - The company's East Buy e-commerce platform, established in fiscal year 2022, has made notable progress in private label product sales and livestreaming e-commerce business in fiscal years 2023 and 2024[115] - The company's OMO (online-merge-offline) system, developed in 2014, integrates offline and online education systems to enhance operational efficiency[122] - The company relies heavily on the popularity of celebrity livestreamers, particularly the "Time with Yuhui" brand, which gained significant traction since its inception in January 2024[118] - In August 2024, Time with Yuhui ceased to be a consolidated entity of East Buy, and its financial results are no longer included in East Buy's consolidated financial statements[118] - The company generates a significant portion of its revenues from key cities in China, including Beijing, Hangzhou, Guangzhou, and Nanjing, which are expected to remain important revenue sources[120] Regulatory and Legal Risks - The PRC government's oversight and regulations on foreign investment and overseas offerings could significantly impact the company's operations and securities value[28][30] - The company was listed as a Commission-Identified Issuer under the HFCAA in October 2022 but expects to avoid future identification due to PCAOB's updated inspection access[31] - The company faces uncertainties regarding PRC government approvals for future offshore offerings, which could result in penalties or business suspension[30] - The company faces risks related to the interpretation and implementation of PRC laws and regulations on private education[72] - The company may be required to take further actions regarding academic tutoring services for students in grade ten to twelve to comply with the Alleviating Burden Opinion[72] - The company faces risks from potential new regulations that could classify digital educational resources as after-school tutoring activities[76] - The company's historical financial results may not be indicative of future performance due to regulatory changes and new business developments[86] - The company faces risks related to cybersecurity, including potential data breaches and system disruptions, which could harm its reputation and financial performance[125][127] - The company is subject to PRC data security laws, including the PRC Data Security Law and Cybersecurity Review Measures, which may impose additional obligations if deemed a critical information infrastructure operator[130] - The company has applied for a security assessment by the Cyberspace Administration of China regarding the cross-border transfer of certain data, as required by the Measures on Security Assessment of the Cross-border Transfer of Data[133] - The company processes personal information of more than 1 million individuals, which subjects it to security assessments for cross-border data transfers[133] - The company may face penalties, fines, or suspension of services if it fails to comply with PRC advertising laws and regulations, which prohibit misleading content and superlative wording in advertisements[134] - The company's overseas test preparation and English language training courses could be adversely affected by geopolitical tensions, particularly between the U.S. and China, potentially leading to declines in student enrollments[136] - The company is currently defending against a putative shareholder class action lawsuit, the outcome of which could have a material adverse effect on its business, financial condition, and reputation[138] - The company may face penalties or suspension of operations if it fails to comply with PRC regulations governing internet access and information dissemination[208] - The company is required to obtain various operating licenses and permits in China, and failure to comply may result in fines, confiscation of gains, or suspension of operations[210] - PRC regulations on offshore special purpose companies may limit the company's ability to inject capital into its PRC subsidiaries or distribute profits[211] - Regulatory measures in China require PRC individuals participating in overseas share incentive plans to file applications with SAFE and remit foreign exchange income into a collective foreign currency account[213] - The company is in the process of making SAFE applications for PRC individuals participating in its share incentive plans, but cannot guarantee success, potentially leading to fines, legal sanctions, and restrictions on stock option exercises[214] - Offshore listings may require CSRC approval under PRC law, and failure to obtain or delays in obtaining such approval could result in fines, restrictions on dividend payments, and other sanctions[215] - PRC domestic companies listed overseas by March 31, 2023, are required to complete CSRC filing procedures for future securities offerings and listings outside mainland China[216] - PRC domestic enterprises seeking overseas securities offerings must establish confidentiality and archives systems and complete approval and filing procedures with competent authorities[218] - Future regulatory changes may impose additional requirements on the company's offshore offerings, potentially leading to fines, restrictions on dividend payments, and other adverse effects[219] Corporate Structure and Contractual Arrangements - The contractual arrangements include equity pledge agreements, exclusive option agreements, powers of attorney, and service agreements to secure economic benefits[18][19][20] - The company's founder and executive chairman, Michael Minhong Yu, owns 99% of Beijing Century Friendship Education Investment Co., Ltd[24] - The company's financial results include consolidated VIEs, with detailed financial data available in the annual report[34] - The company relies on contractual arrangements with variable interest entities (VIEs) for its education business, which may not provide as effective control as direct ownership[171] - The equity pledge agreements with VIEs' shareholders are registered, but PRC courts may limit the enforceability of these agreements[174] - The registered equity interests pledged to the company's subsidiaries for New Oriental China total RMB 50,000,000, representing 100% of its registered capital[175] - Potential conflicts of interest may arise between the company and the controlling shareholder of Century Friendship, which owns New Oriental China[177] - The company uses corporate chops, contract chops, and finance chops for executing legal documents, with approvals required from relevant departments[179] - The company's reliance on chops for legal documents may be subject to risks if custodians or authorized users fail to fulfill their responsibilities[178] - The company faces risks related to the misuse of corporate chops and seals by designated legal representatives, which could disrupt normal business operations and require significant time and resources to resolve[180] - The company's contractual arrangements with VIEs in China could be deemed non-compliant with PRC laws, risking severe penalties or loss of control[159][161] - Foreign ownership in entities providing value-added telecommunication services is restricted to 50% under PRC laws[161] - East Buy's online livestreaming business operates through contractual arrangements with Beijing Xuncheng to comply with PRC regulations[161] - The Alleviating Burden Opinion prohibits foreign capital from controlling or participating in Academic AST Institutions through VIEs[161] - PRC legal counsel confirms that the company's corporate structure and contractual arrangements comply with existing PRC laws and regulations[163] - Non-state capital is prohibited from controlling non-profit kindergartens through contractual arrangements, and community-affiliated kindergartens can only be registered as non-profit kindergartens[165] - The contribution of kindergartens to the company's total net revenues was less than 1% for fiscal years 2022, 2023, and 2024[166] - The company did not invest in or acquire for-profit kindergartens using capital market funds or stock/cash consideration after the promulgation of the Preschool Opinions[166] - The consolidated affiliated entities contributed 99.6%, 99.5%, and 99.2% of the company's total net revenues for fiscal years 2022, 2023, and 2024, respectively[173] Financial Position and Cash Flow - Total assets as of May 31, 2024, were $7,531.673 million, compared to $6,392.458 million in 2023[42] - Cash and cash equivalents as of May 31, 2024, were $1,389.359 million, down from $1,662.982 million in 2023[42] - Total liabilities as of May 31, 2024, increased to $3,482.659 million from $2,577.670 million in 2023[42] - Share-based compensation expenses for 2024 totaled $122.458 million, up from $89.788 million in 2023[39] - Cash and cash equivalents stood at $1,389.359 million as of May 31, 2024, compared to $940.643 million in 2023, a 47.7% increase[46][47] - Total current assets grew to $5,388.878 million in 2024 from $3,024.121 million in 2023, a 78.2% increase[46][47] - Deferred revenue increased to $1,780.063 million in 2024 from $1,775.131 million in 2023, a slight growth of 0.3%[46][47] - Total liabilities rose to $3,482.659 million in 2024 from $3,100.512 million in 2023, an increase of 12.3%[46][47] - Total equity increased to $4,049.014 million in 2024 from $1,125.023 million in 2023, a significant growth of 260.0%[46][47] - Total current assets for the Consolidated Affiliated Entities amounted to $2,396,815 thousand[48] - Total non-current assets for the Consolidated Affiliated Entities reached $1,218,899 thousand[48] - Total liabilities for the Consolidated Affiliated Entities stood at $2,742,334 thousand[48] - Net cash provided by operating activities for the Consolidated Affiliated Entities was $1,013,621 thousand[50] - Net cash used in investing activities for the Consolidated Affiliated Entities was $1,234,725 thousand[50] - Net cash used in financing activities for the Consolidated Affiliated Entities was $16,721 thousand[50] - Net cash provided by operating activities for the Consolidated Affiliated Entities in the previous year was $652,523 thousand[51] - Net cash used in investing activities for the Consolidated Affiliated Entities in the previous year was $294,911 thousand[51] - Net cash used in financing activities for the Consolidated Affiliated Entities in the previous year was $19,353 thousand[52] - Net cash used in operating activities was $1,280,453 thousand for the year ended May 31, 2022[54] - The company's deferred revenue recognition is subject to future performance obligations, and any failure to fulfill these obligations could adversely impact liquidity and results of operations[112] - The company's long-term and short-term investments are subject to fair value changes, with significant unobservable inputs that may lead to uncertainty and volatility in valuation[114] - The company's cash flow and liquidity could be adversely affected if it fails to comply with the restrictions and covenants in the trust deed related to its $300 million 2025 Notes[143] Tax and Dividend Policies - The company's PRC subsidiaries and VIEs may face a maximum statutory tax rate of 25% on earnings, with a 10% withholding tax on distributions[36] - If VIEs' accumulated earnings exceed fees paid to PRC subsidiaries, non-deductible transfers could reduce after-tax income[37] - The company does not have a dividend policy or cash management policies for fund transfers between entities[35] - PRC regulations require subsidiaries to set aside at least 10% of after-tax profits annually for statutory reserves, limiting the company's ability to distribute dividends[183] - The company's reliance on dividends from PRC subsidiaries for cash requirements may be limited by PRC regulations, affecting its ability to grow and make investments[183] - PRC government controls on currency conversion may restrict the company's ability to remit foreign currency for dividends or other payments, potentially limiting access to funds outside China[224] Competition and Market Risks - The company faces significant competition in the private education sector, particularly from online educational service providers using advanced technologies like live broadcasting, which may force the company to reduce course fees or increase spending to retain students[97] - The company's brand reputation is critical to its success, and any negative publicity could harm its business and operating results[82] - The company depends on maintaining consistent teaching quality and retaining qualified teachers, which could be impacted by regulatory requirements[84] - The company faces risks from intellectual property infringement claims, which could result in substantial damages and operational disruptions[90] - The company's trademarks and trade name are at risk of infringement by third parties, which could damage its reputation and brand, despite efforts to protect intellectual property rights[95] - The company's business is subject to seasonal fluctuations, with the highest revenue typically in the first fiscal quarter (June 1 to August 31) due to summer vacation enrollments[104] - The company faces risks related to health epidemics, such as COVID-19, which could lead to reduced attendance or temporary closure of schools and learning centers, adversely affecting liquidity and financial condition[101] - The company may experience a decrease in demand for its services if colleges and universities reduce reliance on admissions and assessment tests, particularly in China and the United States[110][111] - The Chinese economy's growth rate has gradually slowed since 2010, with COVID-19 having an adverse impact in 2022, potentially reducing demand for the company's products and services[196] - The global macroeconomic environment faces challenges, including geopolitical tensions and rising interest rates, which may negatively impact the company's business and financial condition[197] Operational and Compliance Risks - The company ceased offering K-9 Academic AST Services in China at the end of 2021, which had a substantial adverse impact on financial performance[66] - Company ceased K-9 Academic AST Services in all schools and learning centers in China by the end of 2021, leading to significant costs from lease terminations and employee layoffs[75] - Company incurred considerable costs and expenses in FY2022 due to regulatory compliance actions, including termination of leases and employee dismissals[75] - Company's ability to attract students without significant fee reductions is critical to maintaining profitability[78] - Company's net revenues are subject to fluctuations due to regulatory changes, economic conditions, and consumer spending patterns[86] - The total number of schools and learning centers decreased from 1,669 as of May 31, 2021 to 1,025 as of May 31, 2024[66] - The company has experienced several computer attacks in the past, though none have materially affected its operations[127] - The company does not have liability or business disruption insurance in some teaching facilities, which could lead to financial and reputational risks in case of accidents[124] - The company's internal control over financial reporting was deemed effective as of May 31, 2024, but future failures could adversely affect investor confidence and share prices[123] - The company may incur significant costs to protect against security breaches or comply with evolving data protection regulations, potentially impacting financial conditions[128][130] - The company has not been involved in any cybersecurity investigations or received any sanctions related to data security and personal data protection as of the date of the annual report[133] - The company may require additional capital to finance future developments, including new business initiatives, investments, or acquisitions, and may seek to sell additional equity or debt securities if necessary[140] - The company's ability to obtain additional capital is subject to uncertainties, including investor perception, market conditions, and PRC governmental regulations[141] - The company may face challenges in controlling rental costs and

Core Viewpoint - New Oriental Education & Technology Group Inc. (NYSE: EDU) stock is rated as a Buy, with appealing valuations based on its P/E metric compared to expected earnings growth rate [1]. Group 1: Investment Strategy - The research service Asia Value & Moat Stocks focuses on value investors looking for Asia-listed stocks with significant price and intrinsic value gaps, emphasizing deep value balance sheet bargains and wide moat stocks [1]. - The service provides a range of watch lists with monthly updates, targeting deep value balance sheet bargains and high-quality businesses [1]. Group 2: Market Focus - The investment group particularly emphasizes opportunities in the Hong Kong market, seeking stocks that are undervalued or have strong competitive advantages [1].

Investment Rating - The investment rating for the company is "Outperform the Market" [4]. Core Views - The company has successfully adapted to the new regulatory environment post "Double Reduction" policy, showing significant transformation results. In FY2024, the company achieved revenue of $4.314 billion, a 44% increase, and a Non-GAAP net profit of $381 million, a 47% increase, indicating a recovery to 98% of FY2021 levels [1][11]. - The company is transitioning from K9 academic training to new educational business models, including competency training and smart learning systems, while maintaining its high school and adult education services [1][2]. - The education industry is experiencing a supply clearance with strong demand resilience, leading to a concentration trend among leading institutions [1][2]. Summary by Sections Company Overview - Founded in 1993 by Yu Minhong, the company is a leading education and training institution in China, listed in the US in 2006 and in Hong Kong in 2020. It has diversified its business to include K12 education, study abroad consulting, and adult education [1][11]. Transformation Strategy - The company has ceased K9 academic training and is exploring new business avenues such as competency training, e-commerce, and cultural tourism, leveraging its brand and traffic for diversified monetization [1][2][15]. Industry Analysis - The education sector has seen a significant reduction in supply post "Double Reduction" policy, with a 96% decrease in K9 training institutions. The market is expected to recover to pre-policy levels by 2025, with leading institutions gaining market share [1][2][15]. Growth Outlook - New educational businesses are projected to generate $890 million in FY2024, with expected growth rates of 55%, 22%, and 20% from 2025 to 2027. Traditional education services are expected to grow at a stable rate of 15-20% over the next three years [2][5]. - E-commerce and cultural tourism are also anticipated to contribute to growth, with the e-commerce segment expected to recover profitability as operations normalize [2][15]. Financial Projections - Revenue forecasts for FY2025-2027 are $5.113 billion, $6.414 billion, and $7.893 billion, with Non-GAAP net profits projected at $528 million, $796 million, and $1.096 billion, respectively [5][2]. - The company is expected to maintain a PE valuation of 25-28x for FY2025, translating to a target market capitalization of $132-148 billion [2][5].

Investment Rating - The report assigns an "Outperform" rating to New Oriental (EDU N) for the first time [2][3] Core Views - New Oriental maintains its leading position in the education industry with strong brand recognition and sustained growth momentum in FY24Q4, achieving revenue of $1 14 billion, a 32 1% YoY increase Full-year revenue reached $4 31 billion, up 43 9% YoY [2] - The education business shows robust growth, with adult and college exam preparation revenue increasing by 16 4% YoY and new education business revenue surging by 50 3% YoY in FY24Q4 The company expanded its offline presence, adding 114 new schools and learning centers in the quarter, bringing the total to 1,025, a 27% YoY increase [2] - Overseas study preparation and consulting businesses continue to grow strongly, with YoY increases of 17 7% and 17 3% respectively in FY24Q4 Post-pandemic recovery is expected to drive significant rebound in overseas study demand [2] - East Buy (formerly New Oriental Online) faces profit pressure due to personnel changes, with its contribution to New Oriental's revenue expected to gradually weaken [2] Financial Forecasts and Valuation - Revenue for FY2025 and FY2026 is projected at $5 34 billion and $6 50 billion respectively, with Non-GAAP net income attributable to shareholders estimated at $500 million and $640 million [3] - The company's PE ratio for FY2025 and FY2026 is forecasted at 22X and 18X respectively, compared to an average PE of 15X and 11X for peer companies [3] - Gross margin is expected to remain stable, ranging between 53 0% and 53 8% from FY2025 to FY2027 [4] - ROE is projected to improve from 10 09% in FY2024 to 13 67% in FY2026 before slightly declining to 11 79% in FY2027 [4] Business Performance - The company's total assets stood at $7 53 billion as of May 31, 2024, with net assets of $4 05 billion and net asset per share of $2 28 [1] - Operating cash flow is expected to remain strong, with projections of $561 million, $643 million, and $784 million for FY2025 to FY2027 respectively [5] - Capital expenditures are forecasted at $170 million annually from FY2025 to FY2027 [5] Market Position - New Oriental's market capitalization is $11 3 billion as of August 22, 2024, with a PB ratio of 3 0 [1] - The company's active paying users reached 188,000 in FY24Q4, with its smart learning systems and devices adopted in approximately 60 cities [2]

Core Viewpoint - New Oriental Education & Technology Group Inc. has announced a special cash dividend of 6 cents per share, totaling approximately $100 million, reflecting its strong financial performance and commitment to returning value to shareholders [1] Group 1: Dividend Announcement - The board approved a special cash dividend of 6 cents per share or 60 cents per ADS, payable to shareholders of record as of September 9, 2024 [1] - Payments are expected to be made on or around September 23 for common shareholders and September 26 for ADS holders [1] - Following the announcement, the stock dropped 2% during the trading session on August 19, 2024 [1] Group 2: Business Performance - The company’s shares have surged 32.8% in the past year, outperforming the Zacks Schools industry's growth of 27% [2] - Increased demand for test preparation and overseas study consulting services has driven growth, with the overseas test-prep business reporting an 18% year-over-year revenue increase [2] - New educational initiatives, including non-academic tutoring and intelligent learning systems, have contributed to growth, with new initiatives reporting a 50% year-over-year revenue increase [3] Group 3: Future Outlook - New Oriental expects healthy growth in its educational business for fiscal 2025, supported by strong demand and established resources [3] - The company aims for margin expansion across most areas, excluding East Buy, and to achieve satisfactory operating profit for the fiscal year [3] - Significant investment in a new tourism-related business is anticipated to generate meaningful revenues in the upcoming fiscal year [4]

Investment Rating - Buy (Maintained) [4] Core Views - The company is expected to achieve a more balanced expansion and store efficiency from H2 2024, leading to better-than-expected revenue, profit scale, and margin improvement [1] - Market share is expected to continue optimizing, with K9 non-academic and high school stage revenues projected to exceed $2.2 billion and $1.8 billion respectively by FY27, with a CAGR of 35% and 19% from FY24 to FY27 [2] - Profit margins have ample room for optimization, with gross margins expected to improve by 4-5 percentage points due to increased utilization rates, OMO-driven store efficiency, and optimized rental costs [2] - The company is currently in an adjustment observation period, with short-term catalysts expected from summer and autumn enrollment growth outpacing store expansion [2] Market Share Optimization - The company's market share is expected to significantly improve compared to pre-double reduction levels, with K12 student enrollment share projected to reach 2.7% by FY27, matching FY2021 levels [2] - Market share growth is driven by: - Strict entry barriers for quality-oriented literacy courses [2] - Stronger financial capabilities for expansion compared to smaller institutions [2] - Standardized and high-quality teaching research providing cost-effective services [2] - National brand recognition post-2021 [2] Profit Margin Optimization - Gross margins are expected to improve by 4-5 percentage points due to increased utilization rates (from 66% to 80%), OMO-driven store efficiency, and optimized rental costs [2] - Management expense ratios are expected to improve by at least 2 percentage points over the next three years, driven by more balanced KPI settings and faster revenue growth [2] - The company's rapid store expansion in FY24Q4, with 114 new stores added, is seen as a temporary factor affecting margins, not a sign of intensified competition [2] Financial Projections and Valuation - Adjusted net profits for FY25-FY27 are projected at $541 million, $726 million, and $928 million, respectively, with PE ratios of 21.3x, 15.9x, and 12.4x based on the closing price on August 16, 2024 [3] - The company's FY25 PS ratio of 2.3x is below the industry average of 2.7x, and its FY25 PE ratio is lower than peers like TAL Education (42.8x) and Xueda Education (28.1x) [3] - A target market cap of $16.2 billion is set for FY25, implying a 41% upside from the August 16, 2024 closing price [3] Store Expansion and Efficiency - FY24 saw a 37% increase in learning centers, with 1,025 centers by FY24Q4, exceeding the 30% growth guidance [35] - Store expansion slowed in July 2024, signaling a shift towards balancing enrollment growth and store efficiency [35] - The company plans to increase capacity by 20%-25% in FY25, focusing on cities with better revenue and profit performance [35] Business Performance - FY24Q4 revenue grew 32% YoY to $1.14 billion, slightly above guidance, but non-GAAP operating profit and net profit were below Bloomberg consensus estimates due to factors like store expansion costs and management incentives [10] - Education-related new businesses grew rapidly, with FY24Q4 revenue up 50.3% YoY, and non-academic course enrollments increased by 39% YoY to 875,000 [12] - The company expects FY25Q1 revenue (excluding Dongfang Zhenxuan) to grow 31%-34% YoY, with education business operating margins improving by 2 percentage points [13]

已经丧失了信任的两方，终于可以不用再拧巴了。 文丨陈晶 编辑丨宋玮 "当不信任的扳机扣动后，很多事情的走向就不受任何一方的控制了。" 一位接近双方的人士如此评价与辉 同行 CEO 董宇辉、东方甄选 CEO 俞敏洪二人的 "分手" 结局。 这种不信任感始于董宇辉在东方甄选做主播期间声名鹊起，在 "小作文" 事件后达到顶峰——去年底一位 东方甄选员工称视频文案为团队而非都是董宇辉个人作品，被董宇辉的粉丝质疑 "抢功劳"。粉丝和东方甄 选员工来回缠斗、股价经历了多轮下跌。 7 个月后，董宇辉、俞敏洪分道扬镳。过去半年，董宇辉分走了与辉同行的一半利润，剩下另一半也被东 方甄选分配给了董宇辉，此外，董宇辉购买与辉同行的 7658 万元也将由新东方支付。 据东方甄选 7 月 25 发布的公告，将与辉同行利润分派给董宇辉，是出于 "俞先生及本集团对董先生所作贡 献的感谢及赞赏"。不少媒体将这笔利润分成总结为 "分手费"。 接近交易的知情人士称，今天的分成方案，是双方半年前就达成的承诺，并非是因 "分手" 给出的补偿。 上述人士说，去年底，有直播机构开出年薪 8 亿元邀请董宇辉加盟，俞敏洪为了留住董宇辉，曾承诺接下 来一年给 ...

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's revenue for FY2024Q4 reached $1.137 billion, a year-over-year increase of 32%, aligning with market expectations [2] - The company has increased its share repurchase plan from $400 million to $700 million, with $330 million repurchased as of August 6, 2024 [2] - Despite revenue growth, profit margins were impacted by increased costs associated with business expansion and the Oriental Selection segment [2][6] Revenue Summary - For FY2024, the company achieved total revenue of $4.314 billion, a 44% year-over-year increase, returning to pre-regulatory reduction levels [6] - The revenue breakdown shows significant growth in various segments, including a 50% increase in new educational services [2][6] Profitability Summary - The gross profit for FY2024 was $2.263 billion, with a gross margin of 52%, slightly down from the previous year [6] - Operating profit for FY2024 was $350 million, reflecting an 84.4% year-over-year increase, while Non-GAAP operating profit was $473 million, up 69% [6][9] Expense Summary - Sales expenses for FY2024 totaled $661 million, a 49% increase year-over-year, with a sales expense ratio of 15% [6] - Management expenses reached $1.252 billion, a 31% increase year-over-year, with a management expense ratio of 29% [6] Future Outlook - The company expects FY2025Q1 revenue (excluding Oriental Selection self-operated products and live commerce) to be between $1.255 billion and $1.284 billion, representing a year-over-year growth of 31% to 34% [5] - The company anticipates FY2025 education business revenue of $4.134 billion, a 30% year-over-year increase, with Non-GAAP operating profit projected at $843 million [7][8] Market Performance - As of August 7, 2024, the company's stock price was HKD 55.80, with a 52-week range of HKD 38.85 to HKD 77.05 [4] - The company has shown a 24.6% increase over the past 12 months, outperforming the Hang Seng Index, which declined by 13.6% [4]

Investment Rating - The report maintains a "Buy" rating for New Oriental with a target price of $90.0, representing a potential upside of 50.4% from the current price of $59.9 [1]. Core Insights - The education business continues to grow despite short-term profit margin fluctuations, with a significant increase in the number of schools and learning centers, reaching 1,025, up by 114 from the previous quarter [1]. - The company expects net revenue for FY25Q1 to be between $1.25 billion and $1.28 billion, reflecting a year-over-year growth of 31% to 34% [1]. - The deferred revenue balance stands at $1.78 billion, up 33.1% quarter-over-quarter, aligning with revenue growth expectations [1]. Financial Overview - For FY24Q4, total revenue was $113.7 million, a year-over-year increase of 32.1%, slightly above the company's guidance [1]. - Non-GAAP operating profit for FY24Q4 was $36.32 million, a year-over-year increase of 53.8% [1]. - The company reported a gross margin of 52.3%, down 2.2 percentage points year-over-year, primarily due to increased investments in expansion and employee compensation [1][2]. Business Expansion - The overseas exam preparation and study abroad consulting businesses grew by 17.7% and 17.3% year-over-year, respectively [1]. - Non-academic tutoring business registrations increased by 39.1% year-over-year, contributing to an overall revenue growth of 50.3% in new business segments for Q4 [1]. Future Projections - Revenue projections for the next fiscal years indicate continued growth, with expected revenues of $5.02 billion in 2025 and $5.84 billion in 2026, reflecting year-over-year growth rates of 16.3% and 16.5%, respectively [2][3]. - The company anticipates maintaining a strong cash position with total cash, short-term investments, and deposits amounting to $4.94 billion [1].

Core Viewpoint - New Oriental Education & Technology Group Inc. has announced an increase in its share repurchase program from US$400 million to US$700 million, extending the program through May 31, 2025 [1][2]. Group 1: Share Repurchase Program - The initial share repurchase program authorized the company to repurchase up to US$400 million of its ADSs and/or common shares from July 28, 2022, to May 31, 2023 [1]. - The program has been extended for an additional two years, now effective through May 31, 2025 [1]. - As of the announcement date, the company had repurchased approximately US$330.3 million worth of its ADSs under the original program [1]. - The new aggregate value for the share repurchase program is now set at US$700 million [2]. - Repurchases may occur through various means, including open market transactions and block trades, depending on market conditions [2]. Group 2: Company Overview - New Oriental is a provider of private educational services in China, offering a diverse range of educational programs, services, and products [3]. - The company's offerings include educational services, test preparation courses, overseas study consulting, and livestreaming e-commerce [3]. - New Oriental is listed on both NYSE (NYSE: EDU) and SEHK (9901.SEHK), with its ADSs representing ten common shares [3].