Core Viewpoint - Morgan Stanley reaffirms "Overweight" rating for New Oriental-S (09901) and raises target price from HKD 53 to HKD 55 [1] Financial Performance - New Oriental's Q2 FY2026 results exceeded expectations and guidance was raised for the first time in two years [1] - Management's optimistic outlook led to a 7% increase in operating profit forecasts for FY2026 to FY2027 [1] Growth Potential - The company is back on a "high-quality compound growth" track, with expectations for continued performance exceeding forecasts and upward guidance adjustments [1] - The market has not fully recognized the company's profit potential and compounding effects [1] Earnings and Valuation - The annual compound growth rate for earnings per share exceeds 15%, supporting a revaluation of the company's stock [1] - Investors can expect over 5% annual capital returns, backed by USD 5.6 billion in net cash [1]

Core Insights - Deutsche Bank's private banking head for North Asia, Cedric Ko, has resigned after over 15 years in the role, having led the investment manager team for more than four years [1] - Deutsche Bank's private banking business is divided into wealth management and retail banking, with Morgan Stanley highlighting it as a currently undervalued growth area [1] - Morgan Stanley forecasts that the contribution of Deutsche Bank's private banking business to group profits will increase from 26% in 2024 to 30% by 2027, indicating significant growth potential [1]