Core Insights - New Oriental's 1QFY26 revenue reached $1.523 billion, a year-on-year increase of 6.1%, with education business revenue (including cultural tourism) at $1.366 billion, up 8.5% year-on-year [1] - Non-GAAP operating profit was $336 million, reflecting an 11.3% year-on-year growth, with a Non-GAAP operating profit margin of 22%, expanding by 1.1 percentage points year-on-year [1] - The company announced a shareholder return plan, distributing $190 million in cash dividends and repurchasing up to $300 million in stock [1] Education Business Recovery - The revenue from overseas examination training and consulting reached $328 million, growing by 1% year-on-year, but the growth rate slowed by 19 percentage points compared to the same period last year [2] - The company is adjusting its 1-on-1 training model to a 1-to-many format to lower class prices and is expanding its youth overseas examination training services to enhance growth resilience [2] - New business segments, including K9 non-academic training and learning machines, maintained high growth, with revenue increasing by 15% to $403 million [2] Operating Profit Margin Improvement - Despite a slowdown in high-margin overseas study business growth, the increase in the profit margin of quality education business offset this decline [3] - The company implemented measures such as workforce reduction and cost control, with sales expenses at $200 million, up 3.6% year-on-year, and administrative expenses at $370 million, up 2.4% year-on-year, both growing slower than revenue [3] - The Non-GAAP operating profit margin expanded by 1 percentage point to 22%, continuing the trend from 4QFY25 [3] Rating and Future Guidance - The company projects a 2QFY26 revenue growth of 9-12% year-on-year, exceeding the full-year guidance of 5-10% growth [4] - The education business growth is expected to recover, driven by excellent teaching reputation, with a forecasted increase in renewal rates for regular classes [4] - Revenue forecasts for FY26-FY28 have been raised to $5.38 billion, $5.98 billion, and $6.73 billion, respectively, with Non-GAAP net profit estimates adjusted to $555 million, $610 million, and $679 million [4]
新东方-S(09901.HK)：教育业务增速触底 优质口碑带动营收增长提速