Core Viewpoint - Guosen Securities maintains an "outperform" rating for New Oriental-S (09901) and raises the company's net profit forecast for the fiscal years 2026-2028 to $480 million, $560 million, and $620 million respectively, with the latest market capitalization corresponding to PE ratios of 19.5, 17.0, and 15.2 times [1] Group 1: Revenue and Profitability - In FY2026Q2, the company achieved net revenue of $1.191 billion, a year-on-year increase of 14.7%, exceeding market expectations of 12% [1] - The company reported a non-GAAP operating profit of $89.13 million, reflecting a significant increase of 206.9% [1] - Deferred revenue reached $2.162 billion, marking a year-on-year growth of 10.2% [1] Group 2: New Education and Overseas Study Business - The new education business remains a core growth driver, benefiting from an increase in renewal rates, which grew by 21.6% year-on-year, accelerating from 15.3% in FY26Q1 [2] - Non-subject tutoring services covered approximately 1.058 million students, a year-on-year increase of 6.4% [2] - The overseas study-related business showed resilience, with total revenue slightly increasing year-on-year, outperforming previous market expectations of a 5% decline [2] Group 3: Quality Development and Operational Efficiency - As of FY26Q2, the company had 1,379 teaching locations, a 2% increase, continuing its cautious expansion strategy focused on high-quality development [3] - The non-GAAP operating profit margin improved by 4.7 percentage points to 7.5% year-on-year [3] - Gross margin was reported at 53.3%, an increase of 1.3 percentage points, while the management expense ratio remained stable at 31.4% [3] Group 4: Future Outlook - For FY2026Q3, the company expects a year-on-year revenue growth of 11-14% and has raised its full-year revenue growth guidance to 8-12%, up from the previous estimate of 5-10% [4]