Core Viewpoint - Guosen Securities maintains an "outperform" rating for New Oriental-S (09901) due to its clear quality enhancement strategy, positive performance outlook, and attractive shareholder returns [1] Group 1: Financial Performance - In Q1 FY2026, the company achieved revenue of $1.523 billion, a year-on-year increase of 6.1%, exceeding the previous forecast of 5% [1] - Non-GAAP operating profit reached $336 million, up 11.3%, with a Non-GAAP operating profit margin increasing by 1 percentage point to 22% [1] - Non-GAAP net profit attributable to shareholders was $258 million, down 1.6%, primarily due to the impact of dividend withholding tax [1] - Deferred revenue at the end of the period was $1.907 billion, reflecting a 10% increase [1] Group 2: Business Segment Performance - K9 education new business revenue grew by 15%, with non-academic training participants at 530,000, up 10%, and paid active users for learning machines at 452,000, up 40% [2] - High school training revenue increased by 7%, affected by scheduling and regional discounts, with expectations for improved K12 business revenue in FY26Q2 [2] - Study abroad training and consulting revenue grew by 1% and 2%, respectively, benefiting from a favorable external environment and the company's focus on non-U.S. countries and younger demographics [2] - University student business revenue increased by 14%, outperforming the previous expectation of 10% growth [2] Group 3: Future Outlook and Shareholder Returns - For FY2026Q2, the company expects net revenue growth of 9%-12%, maintaining a full-year guidance of 5%-10% growth [3] - A three-year shareholder return plan has been announced, with plans to distribute at least 50% of the previous fiscal year's net profit to shareholders [3] - The board has approved a total cash dividend of approximately $190 million and a share buyback plan of up to $300 million within the next 12 months, totaling 132% of the FY2025 net profit [3] - The current shareholder return plan corresponds to an estimated return rate of about 5.1% based on the latest market capitalization [3]