Core Viewpoint - The company is experiencing a gradual stabilization in its core business, leading to a significant improvement in shareholder returns, with a target price adjustment to $74.5 or HKD 57.9, maintaining a buy rating [1] Performance Overview - For FY26Q1, the company reported a net revenue of $1.52 billion, a year-on-year increase of 6.1%, slightly exceeding previous guidance [1] - Operating profit reached $310 million, up 6% year-on-year, while Non-GAAP operating profit was $336 million, reflecting an 11.3% increase [1] - The net profit attributable to shareholders was $240 million, down 1.9% year-on-year, primarily due to dividend withholding tax and fluctuations in other income [1] - The Non-GAAP net profit attributable to shareholders was $258 million, a decrease of 1.6% year-on-year, with a Non-GAAP operating profit margin of 22.0%, up 1.0 percentage points year-on-year [1] Education Business Performance - In FY26Q1, the overseas exam preparation and study abroad consulting businesses grew by 1.0% and 2.0% year-on-year, respectively, with rapid growth in overseas youth exam training partially offsetting declines in adult exams [2] - The university and adult exam business saw a year-on-year growth of 14.4% [2] - New business revenue increased by 15.3% year-on-year, with non-academic tutoring registrations reaching 530,000, a 9.5% increase [2] - The number of active paying users for smart learning systems and devices reached 452,000 in Q4, a year-on-year increase of 39.9% [2] FY26Q2 and FY26 Outlook - The company expects FY26Q2 net revenue to be between $1.132 billion and $1.163 billion, representing a year-on-year growth of 9% to 12% [3] - The net revenue forecast for FY26 remains unchanged, with expected total revenue between $5.145 billion and $5.39 billion, indicating a year-on-year growth of 5% to 10% [3] Shareholder Return Plan - In July 2025, the company approved a three-year shareholder return plan, committing to return no less than 50% of the previous fiscal year's net profit to shareholders starting from FY26 [4] - The announced shareholder return plan for FY26 includes a cash dividend of $190 million (to be paid in two installments) and a $300 million share buyback within the next 12 months, resulting in a total return of approximately $490 million [4]

Core Viewpoint - First Shanghai has given New Oriental-S (09901, EDU.US) a target price of $74.5 / HKD 57.9 based on a 25x PE for FY26E net profit, maintaining a buy rating due to the stabilization of core business and significant shareholder returns [1] Group 1: Performance Overview - For FY26Q1, the company reported a net revenue of $1.52 billion, a year-on-year increase of 6.1%, slightly exceeding previous guidance [2] - Operating profit reached $310 million, up 6% year-on-year, while Non-GAAP operating profit was $336 million, reflecting an 11.3% increase [2] - The net profit attributable to shareholders was $240 million, down 1.9% year-on-year, primarily due to dividend withholding tax and fluctuations in other income [2] Group 2: Education Business Performance - In FY26Q1, the overseas exam preparation and study abroad consulting businesses grew by 1.0% and 2.0% year-on-year, respectively, with youth exam training showing faster growth [3] - The university and adult exam business saw a year-on-year growth of 14.4% [3] - New business revenue increased by 15.3% year-on-year, with non-academic tutoring registrations reaching 530,000, a 9.5% increase [3] - The active paying users for the smart learning system and devices reached 452,000, up 39.9% year-on-year [3] Group 3: FY26Q2 and FY26 Outlook - The company expects FY26Q2 net revenue to be between $1.132 billion and $1.163 billion, representing a year-on-year growth of 9% to 12% [4] - For FY26, the total net revenue is projected to be between $5.145 billion and $5.39 billion, with a year-on-year growth of 5% to 10% [4] Group 4: Shareholder Return Plan - In July 2025, the company approved a three-year shareholder return plan, committing to return no less than 50% of the previous fiscal year's net profit to shareholders starting from FY26 [5] - The shareholder return plan includes a cash dividend of $190 million (to be paid in two installments) and a $300 million buyback within the next 12 months, resulting in a total return rate of approximately 5% [5] - The total planned return through dividends and buybacks amounts to $490 million [5]

目前，海淀区"双减"工作专班已现场叫停相关违规培训活动，并责令涉事公司立即退费、拆除教学设 施、妥善处理后续事宜。下一步，海淀区市场监管局将根据区教委移交的案件线索，依法依规对上述公 司作进一步查处。 北京爱迪搭科技有限公司位于海淀区北洼西里颐安嘉园18号C座颐安商务楼二楼，北京阅悦坊国际文化 传媒有限公司位于海淀区中关村南大街2号B座三层商业F3Z07，两家公司均涉嫌违规开展面向中小学生 的学科类培训。 北京商报讯（记者 吴其芸）继高途后，机构违规组织线下学科培训再遭查处。11月5日，北京市教委官 方微信公众号"首都教育"发布的消息显示，北京市海淀区"双减"工作专班近日在执法检查中，发现两起 涉嫌违规组织线下学科培训的案例，涉及北京爱迪搭科技有限公司与北京阅悦坊国际文化传媒有限公 司，目前均已依法处置。 ...

Core Viewpoint - The report from CMB International raises the target price for New Oriental Education & Technology Group (09901) by 19.6% from HKD 46 to HKD 55, maintaining a "Buy" rating due to positive outlook on K12 education and training business demand and growth prospects [1] Group 1: Financial Performance - For Q1 of fiscal year 2026, New Oriental reported a revenue increase of 6% year-on-year to USD 1.523 billion, exceeding the bank's expectations by 1% [1] - Adjusted operating profit was approximately USD 336 million, with an operating profit margin of 22%, expanding by 1 percentage point compared to the same period last year [1] - Adjusted net profit attributable to shareholders was USD 258 million, corresponding to a net profit margin of 17% [1] Group 2: Business Segments - The study highlights that the study abroad-related business, although recently impacted, still leads the industry, with consulting and preparatory income growing by 1% and 2% year-on-year, respectively, contrary to previous expectations of a 5% decline [1] - The university and adult education segments maintained steady growth, with a revenue increase of 14% year-on-year, while K9 new business revenue grew by 15%, with learning devices outperforming non-academic subjects [1] Group 3: Future Guidance - Management maintains the revenue guidance for fiscal year 2026, expecting a year-on-year growth rate of 5-10%, with Q2 revenue growth projected between 9-12%, compared to previous expectations of 9% [2] - The K12 business's retention rates and product quality improvements are expected to drive revenue recovery within a stable growth range, while ongoing efficiency measures are likely to support stable or slightly increased operating profit margins [2] - The overall revenue growth rate for the company is expected to exceed 10% for fiscal years 2026, 2027, and 2028, with a consistent trend of profit margin expansion [2]

Core Viewpoint - The report from CMB International raises the target price for New Oriental-S (09901) by 19.6% from HKD 46 to HKD 55, maintaining a "Buy" rating, driven by positive outlook on K12 education and training business demand and growth prospects [1] Group 1: Financial Performance - For Q1 of FY2026, New Oriental reported a revenue increase of 6% year-on-year to USD 1.523 billion, exceeding the bank's expectations by 1% [1] - Adjusted operating profit was approximately USD 336 million, with an operating profit margin of 22%, expanding by 1 percentage point compared to the same period last year [1] - Adjusted net profit attributable to shareholders was USD 258 million, corresponding to a net profit margin of 17% [1] Group 2: Business Segments - The study indicates that the study abroad-related business, although recently impacted, remains a leader in the industry, with better-than-expected performance [1] - The K9 new business saw a revenue increase of 15% year-on-year, while the university and adult business maintained a steady growth rate with a 14% revenue increase [1] - The report highlights that the revenue from preparatory and consulting services grew by 1% and 2% year-on-year, respectively, contrary to previous expectations of a 5% decline [1] Group 3: Future Guidance - Management maintains a revenue growth guidance of 5-10% for FY2026, with Q2 revenue growth expected to be in the range of 9-12%, compared to previous expectations of 9% [2] - The K12 business's continuation rate and product quality improvements are anticipated to drive revenue recovery within a stable growth range [2] - The overall revenue growth rate for FY2026/2027/2028 is expected to exceed 10%, with a consistent trend of profit margin expansion [2]

Investment Rating - The report assigns a "Buy" rating to New Oriental Education Technology (9901 HK) with a target price of HKD 55.00, indicating a potential upside of 19.9% from the current price of HKD 45.88 [4][8][15]. Core Insights - The report highlights that K12 education may accelerate, boosting shareholder returns and enhancing confidence in the company's growth prospects [2]. - Financial forecasts indicate a revenue growth trajectory, with expected revenues of USD 4.9 billion in 2025, growing to USD 6.875 billion by 2028, reflecting a compound annual growth rate (CAGR) of approximately 12% [3][16]. - The net profit is projected to increase from USD 372 million in 2025 to USD 792 million by 2028, with a notable increase in earnings per share (EPS) from USD 0.32 in 2025 to USD 0.45 in 2028 [3][16]. Financial Overview - Revenue (in million USD) is forecasted as follows: - 2024: 4,314 - 2025: 4,900 - 2026E: 5,413 - 2027E: 6,136 - 2028E: 6,875 - Year-on-year growth rates are expected to be 43.9% in 2024, 13.6% in 2025, and gradually declining to 12.0% by 2028 [3][16]. - Net profit (in million USD) projections are: - 2024: 310 - 2025: 372 - 2026E: 428 - 2027E: 481 - 2028E: 792 [3][16]. Valuation - The report employs a Sum-of-the-Parts (SOTP) valuation method, assigning a price-to-earnings (P/E) ratio of 15x for K12 business and 8x for study abroad business, reflecting expected profit growth rates of +25% and -7% respectively [7][8]. - The target price was adjusted upwards to HKD 55.00 from a previous HKD 46.00, maintaining a "Buy" rating based on the strong demand and growth outlook for K12 education services [7][8].

Group 1: New Oriental Education Technology - The company reported a revenue increase of 6% year-on-year to $1.523 billion for Q1 FY2026, exceeding expectations by 1% [1] - Adjusted operating profit was approximately $336 million, with an operating margin of 22%, expanding by 1 percentage point year-on-year [1] - The management maintained the revenue guidance for FY2026, expecting a growth rate of 5-10%, with Q2 revenue growth projected between 9-12% [1][2] - The company announced a cash dividend of $190 million and a share buyback plan of $300 million, which is better than previous expectations [1] Group 2: Howie Group - Howie Group achieved a record high quarterly performance in Q3 2025, with revenue of 7.83 billion yuan, a year-on-year increase of 14.8%, and a net profit of 1.18 billion yuan, up 17.3% [3] - The gross margin for Q3 was 30.3%, reflecting a 0.3 percentage point increase quarter-on-quarter [3] - The growth in the automotive CIS segment is expected to drive revenue growth, with increasing demand in smart driving applications [4] Group 3: Valuation and Market Outlook - The valuation outlook for New Oriental's K12 education business remains positive due to steady revenue growth and potential for margin optimization [2] - The target price for New Oriental has been raised to HKD 55.00, reflecting a potential upside of 19.9% [1][2] - Howie Group's target price is maintained at 180 yuan, corresponding to a 35 times P/E ratio for 2026 [4]

Core Viewpoint - The Hong Kong stock market opened with slight declines in major indices, indicating a cautious market sentiment on November 4th [1] Group 1: Market Performance - The Hang Seng Index fell by 0.04% at the opening [1] - The Hang Seng Tech Index decreased by 0.19% [1] Group 2: Company Movements - Guotai Junan International experienced a significant drop of nearly 6% [1] - Yaojie Ankang-B saw a decline of nearly 5% [1] - Juxing Legend rose by over 5% [1] - Fenbi increased by 3.88% [1]

Company Summary - Xueda Education announced a share buyback plan, repurchasing approximately 3.02 million shares, which represents 2.48% of the total share capital, with a total expenditure of about 149 million yuan [1][1][1] - The highest transaction price during the buyback was 54.94 yuan per share, while the lowest was 41.03 yuan per share [1][1][1] - As of the report, Xueda Education's market capitalization stands at 5 billion yuan [1][1][1] Industry Summary - A significant increase in overseas orders has been reported, with a surge of 246%, covering over 50 countries and regions [1][1][1] - Industry entrepreneurs have raised concerns about potential malicious competition, as some entities are selling at a loss [1][1][1]

Core Insights - The forum emphasizes the need for a shift in family education from a "race" mentality to a "field" approach, advocating for systemic changes through collaboration among families, schools, and society [1][3] - The importance of maintaining the core value of moral education and the humanistic aspect of education amidst technological changes and diverse challenges is highlighted [1][3] Group 1: Family Education Perspectives - Family education is evolving from a personal matter to a national concern, indicating its significance in the broader context of society [1][3] - Parents are encouraged to move away from excessive anxiety and to embrace a more composed and wise approach to education [1][3] - The role of parents as role models in scientific parenting is emphasized, with a focus on moral education as the essence of family education [3] Group 2: Educational System and Social Responsibility - The need for a more diverse evaluation system in schools is stressed, along with the implementation of a holistic approach to education that includes moral, intellectual, physical, aesthetic, and labor education [1][3] - There is a call for society to create an environment that allows children to explore freely and discover themselves [1][3] - The impact of excessive competition and digital product proliferation on youth mental health is addressed, with suggestions for creating supportive environments for children [3] Group 3: Future-Oriented Education - The shift from "race thinking" to "field thinking" is seen as crucial for nurturing each child's uniqueness and autonomy, preparing them for future challenges [3] - In the age of AI, fostering an open exploratory spirit in parents and enhancing children's humanistic qualities and independent thinking skills are deemed increasingly important [3]