NEW ORIENTAL(EDU) 华源证券·2024-11-03 06:25Investment Rating - The report maintains an "Overweight" rating for New Oriental (EDU N) [2] Core Views - New Oriental's FY25Q1 revenue reached 265 million, up 39 8% year-over-year [1] - The company's core education business operating margin improved to 23 7%, a 370bps increase year-over-year, while the Non-GAAP operating margin stood at 24 4%, up 220bps [2] - New Oriental's education new business revenue grew by 49 8% year-over-year, with non-academic class enrollments reaching 484,000, a 10 5% increase [3] - The company's overseas test preparation and study abroad consulting businesses saw revenue growth of 18 8% and 20 7% respectively, while adult and college domestic test preparation business revenue increased by 30 4% [3] Business Performance - New Oriental's total number of schools and learning centers increased to 1,089, with 64 new learning centers added in the quarter [2] - The company's active paying users for its intelligent learning system reached 323,000, a 78 5% year-over-year increase [2] - New Oriental's cash and cash equivalents balance stood at 502 million, 740 million, representing year-over-year growth rates of 31 8%, 27 9%, and 15 3% respectively [3] - Revenue projections for 2025-2027 are 6 49 billion, and $7 40 billion, with year-over-year growth rates of 23 6%, 21 7%, and 14 1% [4] - The company's PE ratios for 2025-2027 are projected at 20x, 16x, and 14x respectively [3] Industry Analysis - The education industry continues to show strong demand, particularly in the non-academic and test preparation segments [3] - New Oriental's multi-line strategy post the "Double Reduction" policy has entered a new growth cycle, with stable market share and continuous growth in new store openings [3]