Investment Rating - The report assigns a "Recommended" rating for the company New Oriental -S, with a target price of 52.25 HKD and an expected EPS of 0.23 for FY2025E [2]. Core Viewpoints - The report highlights that the company has transitioned from its original education business to a live e-commerce model, leveraging knowledge and cultural dissemination, which is expected to drive continuous growth [2][3]. - The company achieved a GMV of 143 billion CNY in FY2024, with a significant increase in the proportion of self-operated products, which now account for 40% of total sales [2]. - The report notes a year-on-year revenue decline of 68.8% in FY2024, primarily due to the divestment of the education business, but anticipates a recovery in sales through multi-platform strategies and offline collaborations [2][3]. Summary by Relevant Sections Financial Performance - The company reported a net profit of 14.70 million CNY for FY2024, a decrease of 22.6% year-on-year, with adjusted net profit margins expected to stabilize despite a decline in gross margins due to increased sales of lower-margin self-operated products [2]. - The total number of employees in the live e-commerce and self-operated product teams increased by 12.3% year-on-year, indicating a focus on expanding operational capacity [2]. Market Strategy - The company is expanding its reach through various platforms, including Douyin, Tmall, JD.com, and Pinduoduo, and is also exploring offline sales channels to enhance customer acquisition [2]. - The introduction of promotional events and collaborations with New Oriental's physical teaching locations is expected to further boost sales in the second half of FY2024 [2]. Product Development - The report mentions the successful launch of new products, such as lutein ester gummies and fresh prickly pear juice, which have quickly sold out, reflecting strong consumer demand [2]. - The company plans to diversify its product offerings beyond fresh food and snacks to include daily necessities and apparel, aiming to broaden its customer base [2].
东方甄选：发布FY2024年度业绩：经营趋于稳定，强产品、拓渠道，看好品牌发展