Core Insights - The company reported better-than-expected performance for FY26Q1, with a revenue growth of 6.1% year-on-year, surpassing the previous guidance of 2%-5% [1] - The company anticipates a revenue growth of 9%-12% for FY26Q2 and maintains an annual growth target of 5%-10% [1] - The out-of-country business showed unexpected improvement, with a 1% growth in exam preparation and a 2% growth in study abroad consulting, indicating a recovery from previous pessimistic forecasts [1] Revenue and Growth Indicators - Deferred revenue increased by 10% year-on-year, and the renewal rate improved across all segments, suggesting robust growth [1] - The K12 business is expected to accelerate significantly in FY26Q2, with K9 growth around 20% and high school showing double-digit growth, validating the strategy of prioritizing product quality [2] - The active paid users in the OMO business reached 452,000, indicating potential for user retention and scalability [2] Shareholder Returns and Financial Health - The company announced a $190 million dividend and a $300 million buyback plan, totaling approximately $490 million, which represents over 130% of FY25 net profit [3] - Cash and cash equivalents stood at $5.03 billion as of FY26Q1, allowing for shareholder returns while maintaining strategic investments [3] - The combination of regular dividends and ongoing buybacks reflects a mature approach to shareholder returns, with a commitment to high payout ratios [3] Profitability and Cost Management - The Non-GAAP operating profit margin improved to 22.0%, driven by better resource utilization, operational leverage, and effective cost control [4] - The company expects further margin expansion in FY26Q2, with a focus on improving profitability in the core business [4] - The shift in the out-of-country business from being a drag on profits to reducing losses is a positive development [4] Earnings Forecast - The company maintains its Non-GAAP net profit forecasts for FY2026-2028 at $580 million, $630 million, and $690 million, respectively [4] - The current stock price corresponds to a PE ratio of 17, 15, and 14 for FY2026-2028, indicating a favorable valuation [4]
新东方-S(09901.HK)FY26Q1财报点评：收入超预期增长 股东回报可观