大行评级丨海通国际：首予新东方H股目标价49港元及“优于大市”评级

Core Viewpoint - Haitong International initiates coverage on New Oriental with a target price of HKD 49 for its H-shares and an "outperform" rating, highlighting the company's leading position across various segments including K12 and overseas business [1] Group 1: Business Performance - The company’s generative AI applications in automatic courseware generation, digital avatars of teachers, and homework grading are expected to enhance conversion efficiency and content quality, aiding in operational efficiency and business focus [1] - For the first quarter of the fiscal year ending August 2026, the adjusted operating profit margin increased by 1 percentage point year-on-year, primarily driven by Dongfang Zhenxuan [1] Group 2: Future Projections - In the second quarter of fiscal year 2026, the company is expected to further improve its profit margin by an additional 2 percentage points due to a slowdown in the expansion of teaching centers and an increase in utilization rates, alongside a low base from the previous year [1] - For the fiscal year ending May 2026, the adjusted operating profit is projected to be USD 650 million, corresponding to a profit margin of 12.1% [1] - A conservative outlook is anticipated for the second half of the fiscal year due to uncertainties in studying abroad and competition in the K9 segment, with an expected year-on-year improvement of 0.3 to 0.5 percentage points [1]