NEW ORIENTAL-新东方-S：教育业务保持较好增长、暑期利润率进一步提升

Investment Rating - The report maintains a "Buy" rating for New Oriental-S (9901.HK) [1] Core Views - The company reported a total revenue of $1.435 billion for Q1 FY2025, representing a year-over-year increase of 30.5%, with a net profit of$ 245 million, up 48.4% year-over-year [1] - Non-GAAP operating profit for Q1 was $300 million, reflecting a year-over-year growth of 22.6% [1] - The non-selective business revenue grew by 33.5% year-over-year, indicating strong performance in new business segments [1] - The company expects Q2 non-selective business revenue to increase by 25-28% year-over-year, aligning with previous expectations [1] - The company has a robust expansion plan, with a target of increasing offline teaching points by 20-25% throughout the year [1] - The report forecasts non-selective business revenues for FY2025-2027 to be$ 4.416 billion, $5.536 billion, and$ 6.697 billion respectively, with Non-GAAP operating profits of $539 million,$ 731 million, and $938 million [1] Summary by Sections Financial Performance - Q1 FY2025 total revenue:$ 1.435 billion, up 30.5% YoY - Net profit: $245 million, up 48.4% YoY - Non-GAAP operating profit:$ 300 million, up 22.6% YoY [1] Business Segments - Non-selective business revenue: $1.278 billion, up 33.5% YoY - Growth in new business segments, particularly non-academic courses and intelligent learning systems [1] Future Outlook - Q2 revenue guidance for non-selective business:$ 851.4 million to $871.8 million, up 25-28% YoY - Continued growth expected in new business segments and stable performance in core education services [1] Expansion Strategy - Offline teaching points increased to 1,089, with a quarterly growth of 6% - National network advantages are strengthening with significant presence in major cities [1] Earnings Forecast - Projected adjusted EPS for FY2025-2027:$ 0.34, $0.44, and$ 0.55 respectively - Corresponding P/E ratios: 18x, 14x, and 11x [2][5]