Ge Long Hui·2025-12-29 08:01Core Viewpoint - New Oriental is experiencing improved operational efficiency and accelerated profit margin expansion, with projected revenue for the second quarter of fiscal year 2026 reaching $1.165 billion, representing a year-on-year growth of 12.2% [1] Revenue Breakdown - The education business (including cultural tourism) is expected to generate revenue of $957 million, reflecting a year-on-year increase of 11% [1] - Other businesses, primarily Oriental Selection, are anticipated to achieve revenue of $208 million, marking a year-on-year growth of 18% [1] Profitability Forecast - The projected Non-GAAP net profit attributable to the parent company for the second quarter is $63 million, which indicates a year-on-year increase of 77.8% [1] - The Non-GAAP net profit margin is expected to be 5.4%, expanding by 2 percentage points year-on-year [1] Business Strategy - The company is slowing the growth rate of its teaching locations to 10% to enhance capacity utilization, which is expected to alleviate profit margin pressures [1] Long-term Projections - Revenue forecasts for fiscal years 2026 to 2028 are set at $5.38 billion, $5.98 billion, and $6.73 billion, respectively [1] - Non-GAAP net profit projections for the same period are $555 million, $610 million, and $679 million, respectively [1] Rating and Target Price - The target price is maintained at $69.9, corresponding to a target price of HKD 54.9 for H-shares, with the rating upgraded to "Buy" [1]