NEW ORIENTAL-新东方-S：核心教育业务维持增长

Investment Rating - The report maintains a "Buy" rating for the company [1]. Core Views - The core education business continues to show growth, with a revenue increase of 33.5% year-on-year to $1.278 billion, aligning with the company's previous performance guidance [1]. - The company expects net revenue for FY25Q2 to be between$ 850 million and $870 million, representing a year-on-year growth of 25% to 28% [1]. - The company has a strong cash reserve totaling$ 4.9 billion, indicating sufficient liquidity for future operations [1]. Financial Performance Summary - For FY25Q1, net income reached $2.65 billion, a year-on-year increase of 39.8% [1]. - The number of schools and learning centers increased to 1,089, with a net addition of 64 centers [1]. - The paid user base grew by 78.5% year-on-year to 3.23 million [1]. Revenue and Profitability - The company's gross margin for FY25Q1 was 53.3%, a 6.9 percentage point increase year-on-year [1]. - Non-GAAP operating profit margin was reported at 24.4%, a decrease of 2.2 percentage points year-on-year [1]. - The company anticipates a revenue growth of approximately 30% for the full fiscal year [1]. Market Position and Future Outlook - The company is expected to maintain a robust growth trajectory in its core education business, with a projected expansion of teaching points by 20% year-on-year [1]. - The target price for the company's stock is set at$ 89.0, reflecting a positive outlook despite potential fluctuations in profit margins [1]. - The company is focusing on expanding its national teaching network and enhancing its educational services [1].