Core Viewpoint - The report indicates that New Oriental's revenue for the first quarter of the 2026 fiscal year grew by 6% year-on-year to $1.523 billion, exceeding expectations by 1% [1] Financial Performance - Adjusted operating profit was approximately $336 million, with an operating margin of 22%, expanding by 1 percentage point year-on-year [1] - Adjusted net profit attributable to shareholders was $258 million, corresponding to a net profit margin of 17% [1] Future Guidance - Management maintains revenue guidance for the 2026 fiscal year, expecting a year-on-year growth of 5% to 10%, with the second fiscal quarter revenue growth projected between 9% and 12% [1] - The bank anticipates that New Oriental's overall revenue growth from 2026 to 2028 will exceed 10%, with a continued trend of profit margin expansion [1] Business Outlook - The bank remains optimistic about the demand and growth prospects for New Oriental's K12 education and training business, citing diversified age coverage and steady revenue growth [1] - Profit margins still have room for optimization, and shareholder returns reflect long-term growth certainty and ample cash flow [1] - Although the study abroad-related business has recently been impacted, it still leads the industry [1] Valuation and Target Price - The bank assigns a price-to-earnings ratio of 15 times for the K12 business and 8 times for the study abroad business, with corresponding profit growth rates of 25% and a decline of 7% respectively [1] - Considering the impact of the consolidation of Dongfang Zhenxuan, the target price for H-shares is raised from HKD 46 to HKD 55, and for U.S. shares from USD 59 to USD 71, maintaining a "Buy" rating [1]
大行评级丨交银国际：上调新东方H股目标价至55港元 看好K12教培业务增长前景