Investment Rating - The report maintains a "Recommended" rating for New Oriental-S (09901.HK) with a target price of 79 HKD, while the current price is 48.5 HKD [1]. Core Insights - The company reported a total revenue of 1.435 billion USD for FY25Q1, representing a year-over-year increase of 31%. The Non-GAAP net profit attributable to shareholders was 265 million USD, up 40% year-over-year. The guidance for FY25Q2 revenue (excluding selection) is projected to be between 851 million and 872 million USD, indicating a year-over-year growth of 25%-28% [1]. - The core education business revenue (excluding selection) grew by 33.5% year-over-year, aligning with previous guidance. The company also saw significant growth in its cultural tourism business, with a revenue increase of 221% year-over-year in Q1 [1]. - The company is expanding its capacity with a total of 1,089 schools and learning centers as of FY25Q1, a 37% increase year-over-year. Deferred revenue reached 1.73 billion USD, up 24% year-over-year [1]. Summary by Sections Revenue Performance - FY25Q1 total revenue was 1.435 billion USD (YOY +31%), closely matching the expected 1.442 billion USD. The core education business revenue grew by 33.5% YOY, with notable increases in various segments: overseas exam preparation (YOY +19%), overseas consulting (YOY +21%), domestic exam preparation for adults and college students (YOY +30%), and new education businesses (YOY +50%) [1]. Profitability - The company achieved a Non-GAAP operating profit of 300 million USD (YOY +23%) with an operating profit margin (OPM) of 20.9%, slightly above the expected 20.6%. The core education business OPM was 24.4%, reflecting a year-over-year improvement of 2.2 percentage points [1]. Capacity Expansion - As of FY25Q1, the company operated 1,089 schools and learning centers, a 37% increase YOY. Non-academic enrollment reached 480,000 (YOY +11%), and active paying users for the intelligent learning system and devices grew by 79% to 320,000 [1]. Financial Forecast - The company expects revenues for 2025, 2026, and 2027 to be 5.208 billion, 6.232 billion, and 7.600 billion USD, respectively, with year-over-year growth rates of 20.7%, 19.7%, and 22.0%. Adjusted net profits are projected at 435 million, 610 million, and 811 million USD for the same years, with growth rates of 40.4%, 40.2%, and 33.1% [2][5].
新东方-S：FY25Q1季报点评：收入稳健增长，核心主业利润率如期改善