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]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's core business revenue meets expectations, and there is optimism regarding long-term profit margin improvement [1][4] - The company has achieved revenue targets for nine consecutive quarters, with strong growth in new educational businesses and rapid growth in cultural tourism [2][16] - Profit margins are under temporary pressure, but there is confidence in gradual improvement as new outlets become more profitable [3][24] Revenue Performance - For FY2025Q1, total revenue increased by 30.5% year-on-year to $1.44 billion, with core business revenue excluding certain segments growing by 33.5% to $1.28 billion, aligning with performance guidance [12][13] - The company expects FY25Q2 revenue to be between $850 million and $870 million, representing a year-on-year growth of 25% to 28% [12][13] - Specific business segments showed notable growth: overseas exam preparation and consulting grew by 18.8% and 20.7% respectively, while new educational business revenue surged by 49.8% [16] Profitability Analysis - FY2025Q1 gross margin decreased by 1 percentage point to 59%, and Non-GAAP operating margin also fell by 1 percentage point to 21%, primarily due to investments in cultural tourism and the impact of new business segments [3][24] - The company anticipates that profit margins will improve as the utilization rate of new outlets increases [3][24] Financial Forecasts - The report adjusts the company's FY2025-2026 Non-GAAP net profit estimates from $500 million and $610 million to $490 million and $600 million respectively, while maintaining the FY2027 estimate at $720 million [4][27] - Current stock price corresponds to FY2025-2027 P/E ratios of 22, 17, and 15 based on Non-GAAP net profit [4][27] Shareholder Returns - The company emphasizes shareholder returns, having initiated a stock buyback program with an increased total value of up to $700 million, with approximately $457.9 million already spent on repurchasing shares [27]

Investment Rating - The report assigns an "Accumulate" rating to the company [2][10]. Core Views - The company shows resilience in new business growth despite concerns over revenue deceleration due to a low base. Profit margins are expected to gradually recover in Q3 and Q4 as the pace of capacity expansion slows [1][2]. Summary by Sections Financial Performance - For FY25Q1, the company reported revenue of $1.435 billion, a 30.5% increase year-over-year. The education segment generated $1.278 billion, up 33.5%, aligning with market expectations [2]. - Non-GAAP operating profit was $300 million, reflecting a 23% increase, with a profit margin of 20.9%, down 1.3 percentage points. The education segment's operating profit was $303 million, up 58.4%, with a profit margin of 24%, an increase of 2 percentage points [2]. - Non-GAAP net profit reached $265 million, a 40% increase, with a profit margin of 18.4%, up 1.2 percentage points [2]. Business Segments - The growth rates for various business segments in FY25Q1 were as follows: exam preparation +19%, consulting +21%, domestic university training +30%, and new businesses +50%. Concerns arose from a slight downward adjustment in the growth rates of high-end study abroad services and high school 1v1 tutoring [2]. - The company maintains its expectation of a 30% revenue growth rate and a 1 percentage point increase in profit margin for the education segment for the full year [2]. Future Outlook - The company plans to expand its network with a capacity growth target of 20-25% for the year. The pace of new store openings is expected to stabilize, which should lead to a gradual recovery in profit margins in Q3 and Q4 [2]. - The guidance for FY25Q2 indicates education segment revenue between $851 million and $872 million, representing a year-over-year growth of 25-28%, which is below the market's expectation of 30% [2].

Investment Rating - The investment rating for the company is "Buy" with a target price of 47.5 HKD, maintaining the rating for the next six months [1]. Core Insights - The company reported a revenue of 1.44 billion USD for FY25Q1, representing a 31% year-on-year increase. Excluding the revenue from Dongfang Zhenxuan's self-operated products and live e-commerce, the revenue growth was 34% [1]. - The company achieved a net profit of 250 million USD, up 48% year-on-year, with a Non-GAAP net profit of 260 million USD, reflecting a 40% increase [1][2]. - The company continues to focus on enhancing service quality and operational efficiency to improve profitability while balancing growth and sustainability [1]. Financial Performance - The operating profit for the quarter was 290 million USD, a 43% increase year-on-year, with a Non-GAAP operating profit of 300 million USD, up 23% [1]. - The company reported a GAAP operating profit margin of 23.7%, an increase of 370 basis points year-on-year, while the Non-GAAP operating profit margin was 24.4%, up 220 basis points [2]. - The company generated a net operating cash flow of 183.2 million USD for the quarter, with total cash and cash equivalents amounting to approximately 4.9 billion USD at the end of the quarter [2]. Growth Projections - The company maintains its revenue forecasts for FY25-27, expecting revenues of 5.2 billion, 6.4 billion, and 7.5 billion USD respectively, with adjusted net profits of 560 million, 770 million, and 1.06 billion USD for the same periods [2].

Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company's Q1 FY2025 financial results show a net revenue of $1.435 billion, representing a year-over-year increase of 30.5%, which aligns with market expectations [1] - The traditional education business continues to perform well, with significant growth in various segments, while the new business lines, including live commerce and cultural tourism, are also showing strong revenue growth [1][2] - The company expects a slight pressure on profit margins in Q2 due to seasonal factors, but anticipates continued growth in the education sector [2] Financial Performance Summary - For FY2025 Q1, the company achieved a Non-GAAP operating profit of $300 million, a year-over-year increase of 22.6%, and a Non-GAAP net profit of $265 million, up 39.8% [1] - The gross margin for FY2025 Q1 was 59.35%, with an operating profit margin of 20.4%, reflecting improvements in learning center utilization and cost reduction measures [2] - Deferred revenue reached $1.733 billion, indicating strong cash flow and future revenue assurance [2] Business Segment Performance - The total number of schools and learning centers increased to 1,089, a quarter-over-quarter growth of 6.24% and a year-over-year growth of 37.33% [1] - The traditional education business segments, including high school and study abroad training, saw growth rates of over 20%, while the new education business grew by 49.8% [1] - The cultural tourism business reported revenues of nearly $90 million for FY2025 Q1, a year-over-year increase of 221% [1] Financial Projections - The company projects FY2025 net revenue (excluding a specific segment) to grow by 25% to 28%, reaching between $851 million and $872 million [2] - Non-GAAP net profit forecasts for FY2025 to FY2027 are $515 million, $689 million, and $904 million, representing year-over-year growth rates of 35.2%, 33.6%, and 31.3% respectively [2][3]

Investment Rating - The report maintains a "Buy" rating for New Oriental-S (9901.HK) [1] Core Views - The company reported a total revenue of $1.435 billion for Q1 FY2025, representing a year-over-year increase of 30.5%, with a net profit of $245 million, up 48.4% year-over-year [1] - Non-GAAP operating profit for Q1 was $300 million, reflecting a year-over-year growth of 22.6% [1] - The non-selective business revenue grew by 33.5% year-over-year, indicating strong performance in new business segments [1] - The company expects Q2 non-selective business revenue to increase by 25-28% year-over-year, aligning with previous expectations [1] - The company has a robust expansion plan, with a target of increasing offline teaching points by 20-25% throughout the year [1] - The report forecasts non-selective business revenues for FY2025-2027 to be $4.416 billion, $5.536 billion, and $6.697 billion respectively, with Non-GAAP operating profits of $539 million, $731 million, and $938 million [1] Summary by Sections Financial Performance - Q1 FY2025 total revenue: $1.435 billion, up 30.5% YoY - Net profit: $245 million, up 48.4% YoY - Non-GAAP operating profit: $300 million, up 22.6% YoY [1] Business Segments - Non-selective business revenue: $1.278 billion, up 33.5% YoY - Growth in new business segments, particularly non-academic courses and intelligent learning systems [1] Future Outlook - Q2 revenue guidance for non-selective business: $851.4 million to $871.8 million, up 25-28% YoY - Continued growth expected in new business segments and stable performance in core education services [1] Expansion Strategy - Offline teaching points increased to 1,089, with a quarterly growth of 6% - National network advantages are strengthening with significant presence in major cities [1] Earnings Forecast - Projected adjusted EPS for FY2025-2027: $0.34, $0.44, and $0.55 respectively - Corresponding P/E ratios: 18x, 14x, and 11x [2][5]

Investment Rating - The investment rating for the company is "Outperform the Market" [4][12]. Core Views - The company's education business performance is in line with expectations, with operational efficiency continuously improving. In FY2025Q1, education revenue increased by 34%, and net revenue reached $1.435 billion, up 30.5% year-on-year. Excluding the impact of Dongfang Zhenxuan, net revenue was $1.278 billion, up 33.5% year-on-year, aligning with the revenue guidance for FY2024Q4 [1][5]. - The company maintains a full-year capacity expansion expectation of 20-25%, with the number of schools and learning centers reaching 1,089, a 37% year-on-year increase [1][5]. - The company anticipates FY2025Q2 education revenue to grow by 25-28%, driven by strong growth in new education businesses and domestic university student training [1][5]. Summary by Relevant Sections Financial Performance - In FY2025Q1, Non-GAAP operating profit was $300 million, up 22.6% year-on-year, with a Non-GAAP operating profit margin of 20.9%. Excluding the impact of Dongfang Zhenxuan, the operating profit margin was 24%, up 2.2 percentage points year-on-year [1][5]. - Non-GAAP net profit attributable to the parent company was $265 million, up 39.85% year-on-year, exceeding Bloomberg consensus expectations [1][5]. Business Segments - The new education business showed strong growth, with overseas examination preparation and consulting businesses growing by 18.8% and 20.7% year-on-year, respectively. Domestic university training business revenue increased by approximately 30% year-on-year, while high school training revenue grew by about 21% year-on-year [1][5]. - The new education business revenue increased by 49.8% year-on-year, driven by non-academic training and learning machine subscriptions, which reached 323,000 users, up 78.5% year-on-year [1][5]. Future Outlook - The company projects FY2025-2027 revenue forecasts of $5.113 billion, $6.414 billion, and $7.893 billion, respectively, with Non-GAAP net profits of $528 million, $796 million, and $1.096 billion, respectively [2][5]. - The overall education industry remains in a high-growth phase, with a persistent supply-demand imbalance for quality offerings, supporting the company's upward profit margin trajectory [2][5].

Investment Rating - The report maintains a "Buy" rating for New Oriental Education Technology (9901 HK) with a target price of HKD 80.00, indicating a potential upside of 59.8% from the current price of HKD 50.05 [1][4]. Core Insights - The core education business remains robust, with a revenue of USD 1.44 billion for Q1 FY2025, reflecting a year-on-year growth of 30.5%. Excluding Dongfang Zhenxuan, revenue grew by 33.5% [1]. - Adjusted operating profit reached USD 300 million, a 23% increase year-on-year, with an adjusted operating margin of 21% [1]. - The company is expected to maintain a revenue growth of 30% for the fiscal year 2025, with an operating profit margin of 13% [2]. Summary by Sections Financial Performance - For FY2025, revenue is projected to reach USD 5.235 billion, with a year-on-year growth of 21.4% [3]. - Net profit is expected to be USD 563 million, with an EPS of USD 3.40, reflecting a growth of 49% year-on-year [3]. - The company’s P/E ratio is projected to be 1.9 for FY2025, indicating attractive valuation [3]. Business Segments - Traditional business segments such as study abroad preparation and consulting showed year-on-year revenue growth of 18.8% and 20.7% respectively, contributing approximately 50% to total revenue [1]. - New business segments experienced a 50% year-on-year revenue increase, contributing about 24% to total revenue [1]. - The number of teaching points increased to 1,089 as of August 31, 2024, with a management target of 20-25% expansion for FY2025 [1]. Market Outlook - The report suggests that New Oriental remains a leading player in the education training industry, with opportunities to adjust its product structure in response to market demand [2]. - The company is expected to benefit from scale effects due to last year's expansion of teaching points, which will enhance profitability [1].

Investment Rating - The report maintains a "Buy" rating for New Oriental Education & Technology Group (09901) [1][3] Core Insights - The company reported a strong revenue growth of 30.5% year-on-year for Q1 FY25, reaching USD 1.435 billion, driven primarily by its non-academic training business [2][3] - Non-GAAP net profit for the same period was USD 265 million, reflecting a year-on-year increase of 39.8% [2][3] - The company’s new business segment, which includes non-academic training, saw a revenue increase of 50% year-on-year, contributing USD 350 million [2][3] - The number of users for learning machines grew by 78.5% year-on-year, reaching 323,000 [2][3] - The total number of teaching points increased by 37.3% year-on-year to 1,089, indicating a robust demand for training services [2][3] Financial Data and Profit Forecast - Revenue projections for FY25 are estimated at USD 5.438 billion, with a year-on-year growth rate of 43.89% [3][5] - Non-GAAP net profit is forecasted to be USD 493 million for FY25, with a growth rate of 47.20% [3][5] - The report anticipates continued growth in the non-academic training sector, with a projected training participant count of 3.82 million for FY25, compared to 12 million prior to the "double reduction" policy [2][3] - The target price is set at USD 109.5, indicating a potential upside of 63.1% from the current price [3][5] Key Performance Indicators - The report highlights a projected EPS of USD 2.98 for FY25, increasing to USD 5.38 by FY27 [3][8] - The net asset return rate is expected to rise from 6.17% in FY23 to 14.22% in FY27 [3][8] - The gross margin is projected to improve from 52.98% in FY25 to 57.29% in FY27 [3][8]