Core Viewpoint - The company maintains a "Buy" rating for New Oriental-S (09901) due to strong growth in education business and recovery in the Oriental Selection segment, with revenue forecasts for FY26-FY28 increased to $5.5 billion, $6.11 billion, and $6.89 billion respectively [1] Financial Performance - In Q2 FY26, the company reported revenue of $1.191 billion, a year-on-year increase of 14.7%. The education business (including cultural tourism) generated $974 million, up 13% year-on-year, while other businesses (mainly Oriental Selection) earned $217 million, growing 22.9% [2] - The Non-GAAP net profit attributable to the parent company was $73 million, reflecting a 68.6% year-on-year increase, with a Non-GAAP net profit margin of 6.1%, expanding by 2 percentage points [2] Study Abroad Business - The revenue from study abroad exam training and consulting in Q2 FY26 was $252 million, showing a year-on-year growth of 1%, a slowdown of 29.3 percentage points compared to the same period last year. However, it remained stable compared to Q1 FY26 [3] - The company is integrating study abroad training and consulting services and expanding its target audience by increasing youth training offerings to enhance growth resilience in this segment [3] New Business Growth - New business revenue (K9 competency training and learning machine) grew by 21.6% year-on-year to $366 million, with sustained high growth in non-subject competency businesses. The continuation rate for K9 competency training and learning machines is improving, indicating enhanced product reputation [4] - The number of teaching centers increased to 1,379, a year-on-year growth of 21%, although the growth rate slowed by 2.7 percentage points compared to Q1 FY26. The company aims to improve operational efficiency by maximizing existing teaching center capacity [4] Operating Profit Margin Improvement - Despite the slowdown in high-margin study abroad business, the increase in competency business margins offsets this decline. The Non-GAAP operating profit margin in Q2 FY26 expanded by 4.7 percentage points to 7.5% year-on-year, showing an accelerating expansion trend [5] - The Non-GAAP operating profit margin for the education business was 6.6%, up by 3.5 percentage points year-on-year, while the margin for other businesses (mainly Oriental Selection) was 13%, increasing by 12.4 percentage points [5]

Core Viewpoint - Company maintains a "Buy" rating for New Oriental-S (09901) due to strong growth in education business and recovery in the Dongfang Zhenxuan segment, with revenue forecasts for FY26-FY28 adjusted to $5.5 billion, $6.11 billion, and $6.89 billion respectively [1] Financial Performance - In Q2 FY26, New Oriental reported revenue of $1.191 billion, a year-on-year increase of 14.7%, with education business (including cultural tourism) generating $974 million, up 13% [1] - Other businesses, primarily Dongfang Zhenxuan, contributed $217 million, reflecting a 22.9% year-on-year growth [1] - Non-GAAP net profit attributable to the parent company reached $73 million, a 68.6% increase year-on-year, with a Non-GAAP net profit margin of 6.1%, expanding by 2 percentage points [1] Study Abroad Business - The revenue from study abroad exam training and consulting in Q2 FY26 was $252 million, showing a year-on-year growth of 1%, but a slowdown of 29.3 percentage points compared to the previous year [2] - The company is integrating study abroad training and consulting services and expanding its target audience to enhance growth resilience in this segment [2] New Business Growth - New business segments, including K9 competency training and learning machine sales, saw a revenue increase of 21.6% to $366 million [3] - The number of teaching centers grew to 1,379, a 21% year-on-year increase, although the growth rate slowed by 2.7 percentage points compared to Q1 FY26 [3] Operating Profit Margin Improvement - Despite the slowdown in high-margin study abroad business, the increase in profitability from competency training offset this decline [4] - Q2 FY26 Non-GAAP operating profit margin expanded by 4.7 percentage points to 7.5%, with education business margin at 6.6%, up 3.5 percentage points year-on-year [4] - Other businesses, mainly Dongfang Zhenxuan, achieved a Non-GAAP operating profit margin of 13%, an increase of 12.4 percentage points year-on-year [4]

Core Viewpoint - New Oriental's total revenue for the second quarter of fiscal year 2026 increased by 15% year-on-year to $1.191 billion, exceeding market consensus by 3% and surpassing the company's previous guidance of 9% to 12% [1] Financial Performance - Non-GAAP operating profit surged by 223% year-on-year to $89 million, exceeding consensus expectations by 62%, with a corresponding Non-GAAP operating profit margin of 7.5%, which is 2.8 percentage points higher than the consensus estimate of 4.7% [1] Future Outlook - Looking ahead, the overall industry situation has not yet recovered, and the merger of the company's test preparation and study abroad consulting businesses is expected to lead to a decline in study abroad revenue [1] - Based on the upward revision of performance expectations, the target price has been raised from HKD 49 to HKD 52, with a rating of "outperform the market" [1] Operational Efficiency - The company has observed ongoing effectiveness in cost reduction and efficiency enhancement measures, with progress noted in teacher allocation optimization and product diversification across various dimensions, including OMO, 1V1, small class courses, and subject expansion [1] Business Sustainability - The company's K12 business shows sustainable growth potential, while the study abroad segment faces revenue pressure; however, the company is determined to improve the profitability of this segment [1] - Despite maintaining low double-digit revenue growth, investors are encouraged to focus more on profit growth, as the management has demonstrated a strong commitment to delivering returns to investors [1]

Core Insights - New Oriental achieved net revenue of $1.191 billion in FY26Q2, a year-on-year increase of 14.7%, and a net profit attributable to shareholders of $45.45 million, up 42.3% year-on-year [1] - The company has raised its full-year revenue guidance for FY26 to between $5.292 billion and $5.488 billion, reflecting a year-on-year growth of 8% to 12% [2] - The board has approved a cash dividend of $0.12 per share and initiated a $300 million share buyback program, indicating management's confidence in future growth [2] Business Performance - The overseas examination preparation business saw a revenue increase of 4.1% year-on-year, while domestic examination preparation for adults and university students grew by 12.8% year-on-year, contributing significantly to core revenue [1] - New educational businesses reported a revenue increase of 21.6% year-on-year, with non-subject tutoring services operating in approximately 60 cities and attracting around 1.058 million registrations [1] - The "Oriental Selection" segment generated revenue of 2.3 billion RMB in the six months ending November 30, 2025, a year-on-year increase of 5.7%, and turned a profit of 239 million RMB [1] Operational Efficiency - Non-GAAP operating profit for FY26Q2 was $89.13 million, a significant increase of 206.9% year-on-year, with an operating profit margin of 7.5%, up 4.7 percentage points year-on-year [2] - The improvement in profitability is attributed to a focus on core operations, cost reduction measures, and efficiency enhancements through organizational restructuring and AI technology [2] Future Outlook - The company expects overall net revenue for FY26Q3 to be between $1.31 billion and $1.349 billion, reflecting a year-on-year growth of 11% to 14% [2] - Continued revenue growth and ongoing cost optimization efforts are anticipated to further improve operating profits in the future [2] Profit Forecast and Valuation - The profit forecasts for the fiscal years 2026-2028 have been raised to $497 million, $585 million, and $680 million, respectively, with corresponding EPS estimates of $0.31, $0.37, and $0.43 [3] - The current stock price corresponds to a PE ratio of 18x for FY26, 15x for FY27, and 13x for FY28, reflecting the company's position as a leader in the education and training industry [3]

Group 1: Core Insights - New Oriental reported FY26Q2 net revenue of $119.1 million, a year-on-year increase of 14.7%, and net profit attributable to shareholders of $45.5 million, up 42.3% [1] - The revenue exceeded expectations mainly due to the recovery of new education business and Oriental Selection, with profit growth outpacing revenue growth due to a 1.2 percentage point increase in gross margin and a 2.6 percentage point decrease in sales expense ratio [1] - The company has successfully implemented its FY26 shareholder return plan, paying a cash dividend of $0.06 per ordinary share and initiating a $300 million share repurchase plan, having repurchased approximately 1.6 million ADS for about $86.3 million as of January 27, 2026 [1] Group 2: Business Performance - Non-academic business showed a recovery with a 6.4% increase in enrollment and a 10.2% rise in deferred revenue for the first half of the year [1] - The new education business, including quality education and intelligent learning systems, grew by 21.6% year-on-year in FY26Q2, significantly up from 15.3% in FY26Q1, driven by a focus on core education and improved teaching quality [1] - As of FY26Q2, deferred revenue stood at $2.162 billion, reflecting a 10.2% year-on-year increase, slightly up from 10.0% in FY26Q1 [1] Group 3: Segment Analysis - The overseas examination preparation and study abroad consulting businesses experienced mixed growth, with increases of 4.1% and a decline of 3.0% respectively in FY26Q2 [2] - The university and adult examination business grew by 12.8% year-on-year, compared to 14.4% in FY26Q1 [2] - FY26Q2 gross margin and net profit margin were 53.3% and 3.8%, respectively, reflecting increases of 1.2 and 0.7 percentage points year-on-year [2] Group 4: Future Outlook - The company projects FY26Q3 revenue growth of 11-14% and full-year revenue growth of 5-10% [2] - New business is expected to grow by 20-25%, with high school business growth at 13% and tourism-related business growth at 25% [2] - The company aims to enhance its OMO teaching system and integrate AI-driven solutions into its products, which is expected to strengthen product capabilities and improve profit margins [2]

Core Viewpoint - New Oriental reported Q2 FY26 revenue of $1.191 billion, a year-over-year increase of 14.7%, exceeding the upper limit of guidance (12%) [1] - Adjusted operating profit reached $89 million, with an operating profit margin (OPM) of 7.5%, a year-over-year increase of 4.7 percentage points, significantly surpassing Bloomberg consensus expectations [1] Revenue and Profitability - The company expects Q3 FY26 and FY26 full-year revenue growth of 11-14% and 8-12% respectively, reflecting improved teaching quality, returning demand, and favorable exchange rates [1] - K12 business growth is steady, with cost reduction and efficiency improvements expected to gradually enhance group profit margins, aiming to provide sustainable returns to shareholders [1] Business Segment Performance - K12 sector showed accelerated growth with a year-over-year increase of 21.6% in new business revenue, while university and adult education revenue grew by 12.8% [2] - Study abroad exam preparation revenue increased by 4.1%, while study abroad consulting revenue declined by approximately 3%, demonstrating resilience in challenging conditions [2] Operational Efficiency - The company plans to merge its study abroad consulting and exam preparation businesses by the end of FY26, aiming to streamline service chains, enhance operational efficiency, and reduce costs through combined management [2] Profit Forecast and Valuation - The non-GAAP net profit estimates for FY26/27/28 have been slightly raised to $578 million, $681 million, and $756 million respectively [2] - The target price is set at $65.43 per share, based on an 18x FY26 PE, reflecting the stability of core business profitability and leading shareholder returns in the industry [2]

Core Viewpoint - New Oriental's Q2 FY2026 performance exceeded market expectations, driven by improved profitability in its education business and contributions from Dongfang Zhenxuan [1] Group 1: Financial Performance - The company raised its FY2026 revenue growth guidance from 5%-10% to 8%-12% due to stronger-than-expected revenue growth in K12 and overseas study segments [1] - Earnings visibility has improved due to efficiency enhancements and contributions from Dongfang Zhenxuan [1] Group 2: Earnings Forecast - Based on the upward revision of Dongfang Zhenxuan's profit forecast, the company increased its earnings per share estimates for FY2027-2028 by 0.4% to 1.4% [1] - The target price for New Oriental was raised from HKD 53 to HKD 57, maintaining a "Buy" rating [1]

Core Viewpoint - New Oriental's stock price increased by 3.22% to HKD 47.52, with a trading volume of HKD 170 million, following the release of its Q2 financial results for FY2026, which showed significant growth in revenue and profit [1][5]. Financial Performance - Net revenue for Q2 FY2026 rose by 14.7% year-on-year to USD 1.191 billion [1][5]. - Operating profit surged by 244.4% year-on-year to USD 66.3 million [1][5]. - Net profit attributable to shareholders increased by 42.3% year-on-year to USD 45.5 million [1][5]. Revenue Guidance - The company raised its full-year revenue guidance for FY2026 to a range of USD 5.292 billion to USD 5.488 billion, reflecting a year-on-year growth of 8% to 12% [1][5]. Analyst Ratings - JPMorgan reiterated its "Overweight" rating on New Oriental and raised the target price from HKD 53 to HKD 55 [1][5]. - The positive Q2 performance and revised guidance mark the first time in two years that the company has exceeded expectations [1][5]. - Management's optimistic outlook led JPMorgan to increase its operating profit forecast for FY2026 to FY2027 by 7% [1][5].

摩根大通发布研报称，重申新东方"增持"评级及首选股份地位，目标价由53港元升至55港元。新东方 2026财年第二财季业绩好于预期，并上调指引，这是两年来的首次。管理层的乐观态度促使该行将2026 财年至2027财年的经营利润预测上调7%。 智通财经APP获悉，新东方-S(09901)再涨超3%，截至发稿，涨3.13%，报47.48港元，成交额1.67亿港 元。 消息面上，新东方日前发布截至2025年11月30日止的2026财年第二季度财务业绩公告，净营收同比上升 14.7%至11.91亿美元；经营利润同比上升244.4%至6630万美元；股东应占净利润同比上升42.3%至4550 万美元。公司上调2026财年全年净营收指引至52.92-54.88 亿美元，同比增长8%-12%。 ...

Core Viewpoint - New Oriental Education & Technology Group (09901) reported strong financial results for Q2 of fiscal year 2026, leading to a stock price increase of over 3% [1] Financial Performance - Net revenue for Q2 increased by 14.7% year-on-year to $1.191 billion [1] - Operating profit surged by 244.4% year-on-year to $66.3 million [1] - Net profit attributable to shareholders rose by 42.3% year-on-year to $45.5 million [1] Guidance and Analyst Ratings - The company raised its full-year revenue guidance for fiscal year 2026 to between $5.292 billion and $5.488 billion, reflecting a year-on-year growth of 8% to 12% [1] - JPMorgan reiterated its "Overweight" rating on New Oriental and raised the target price from HKD 53 to HKD 55 [1] - The positive Q2 performance and revised guidance led JPMorgan to increase its operating profit forecast for fiscal years 2026 to 2027 by 7% [1]