Core Viewpoint - Citigroup's research report indicates that New Oriental-S (09901.HK) management has confirmed that second-quarter performance exceeded expectations, with a profit margin expansion of 300 basis points (excluding Dongfang Zhenxuan), and expressed high confidence in exceeding annual targets [1] Group 1: Financial Performance - K12 business is accelerating growth in the third quarter, with high school business guidance up 18% and K9 business guidance up 23% (in USD) [1] - This strong performance is sufficient to offset the weakness in the annual overseas business, which is projected to be between 0% to -5% [1] - Management has stated that revenue and profit will definitely exceed expectations, showing confidence in achieving targets for the year [1] Group 2: Strategic Developments - New Oriental is merging its overseas exam preparation business with its study abroad consulting business to reduce customer acquisition costs and break down departmental barriers, marking a key strategic shift [1] - The upward revision of high school business guidance to 18% reflects the expansion of the OMO model and efficiency improvements driven by AI workplace systems [1] - Improved retention rates in K9 support an annual growth of over 20% [1] Group 3: Analyst Rating - Citigroup maintains a "Buy" rating for New Oriental with a target price of HKD 59 [1]
大行评级丨花旗：新东方国内加速抵销海外阻力 维持“买入”评级