Group 1 - The study abroad industry is facing challenges due to changes in the global economic environment and educational competition, leading to a cautious approach from families regarding overseas education, resulting in a slowdown in the growth of outbound students [2] - New Oriental's revenue from overseas exam preparation and consulting services grew by approximately 7.1% and 21.4% year-on-year for Q3 of FY2025, but both business segments experienced a decline in growth rate compared to previous periods [2][5] - The report indicates a shift in study abroad destinations, with the UK surpassing the US in popularity among Chinese students due to its shorter academic programs and stable political environment [3] Group 2 - The demand for study abroad is diversifying, with students increasingly focusing on employment outcomes rather than merely enhancing their resumes, particularly among master's and doctoral candidates [4] - Engineering, economics, and management are the top three preferred fields of study for prospective international students, with a slight increase in the proportion of students choosing engineering disciplines [4] - The study abroad market is entering a period of slow growth, with a noticeable decrease in the total number of international students being admitted to traditional destinations like the US, UK, Australia, and Canada [5] Group 3 - New Oriental is expanding its study abroad services to cater to different age groups, including the growing market for "silver-haired" students, who are retirees seeking short-term study opportunities abroad [6] - The company is also exploring the potential for inbound international students, as the quality of Chinese education continues to rise, attracting students from Southeast Asia [6] - The value of studying abroad remains significant, with returnees playing a crucial role in the Chinese job market, particularly in enterprises that require professionals with a global perspective [6]

Core Viewpoint - New Oriental's Q3 financial report shows a mixed performance with a revenue increase but underlying concerns about future growth and profitability [2][3][6] Financial Performance - For the first three fiscal quarters of 2025, New Oriental reported a cumulative revenue of $3.657 billion, a 15.1% increase from $3.177 billion in the same period last year [2] - The net profit for the same period reached $364 million, reflecting a 29.0% year-on-year growth, significantly outpacing revenue growth [2] - In Q3, net revenue decreased by 2% to $1.183 billion, which was below market expectations [3][8] - Excluding the impact of its e-commerce and live-streaming business, revenue actually increased by 21.2% to $1.038 billion [7] Business Segments - The core education business showed structural growth, with significant revenue increases in overseas exam preparation (7.1%) and domestic exam preparation for adults and college students (17%) [7] - New Oriental's new education business maintained strong growth, with a revenue increase of 34.5% in the quarter [7] Market Reactions - Following the earnings report, New Oriental's stock performance was mixed, with a decline of 0.68% in the US market and a rise of over 5.6% in Hong Kong, indicating divergent investor sentiment [3] - Several financial institutions, including Macquarie and JPMorgan, have lowered their target prices for New Oriental following the earnings report [4][13] Future Guidance - New Oriental's management has indicated that profit pressures are expected to ease in the coming quarters due to cost-cutting measures [10][11] - The company forecasts a revenue growth of 10%-13% for Q4 of fiscal 2025, which is lower than market expectations [11][13] Cash Position - As of the end of February, New Oriental had a total cash and short-term investments of $4.4 billion, with $2.68 billion available for discretionary use after accounting for deferred revenue [17]