Core Insights - The company reported FY2025 Q4 total net revenue of $1.24 billion, a year-on-year increase of 9.4%. Excluding self-operated products and live e-commerce from Dongfang Zhenxuan, total revenue was $1.09 billion, up 18.7% year-on-year [1] - Operating cash inflow for FY2025 Q4 was $399 million, with capital expenditures of $65.9 million [1] - The company expects FY26 Q1 net revenue (including e-commerce) to grow by 2% to 5% year-on-year, and FY2026 full-year net revenue to increase by 5% to 10% [1] Financial Performance - FY2025 Q4 operating loss was $8.67 million, compared to an operating profit of $10.53 million in the same period last year. Non-GAAP operating profit was $81.68 million, a year-on-year increase of 116.3% [2] - The net profit attributable to shareholders was $7.1 million, a decline of 73.7% year-on-year, primarily due to a one-time goodwill impairment of $60 million related to kindergarten assets. Non-GAAP net profit attributable to shareholders was $98.08 million, up 59.4% year-on-year [2] Business Segments - Core business remained robust, with revenue from overseas exam preparation and consulting services growing by 14.6% and 8.2% year-on-year, respectively. Domestic exam preparation for adults and university students saw a revenue increase of approximately 17.0% [2] - New education business revenue grew by 32.5% year-on-year, continuing to be a major growth driver. Non-subject tutoring services have been launched in nearly 60 cities, with approximately 918,000 registrations this quarter [2] Profit Forecast and Investment Rating - Due to macroeconomic factors, the company has revised its Non-GAAP net profit forecasts for FY2026-2027 from $600 million and $720 million down to $580 million and $630 million, respectively, with an expectation of $690 million for FY2028. The current stock price corresponds to a PE ratio (Non-GAAP basis) of 12/11/10 times for FY2026-2028 [3] - The company maintains a "buy" rating, citing steady growth in core business, ongoing operational efficiency improvements, and a normalized shareholder return mechanism expected to create long-term value for shareholders [3]

Investment Rating - The report maintains a "Buy" rating for New Oriental-S (09901.HK) [1][3] Core Insights - The company's core business profitability is improving, and a new shareholder return plan demonstrates confidence in future performance [1][3] - The report adjusts the Non-GAAP net profit forecasts for FY2026 and FY2027 down to $580 million and $630 million respectively, with an expectation of $690 million for FY2028 [3] - The current stock price corresponds to a PE ratio (Non-GAAP) of 12, 11, and 10 times for FY2026 to FY2028 [3] Financial Performance Summary - FY2025Q4 total net revenue reached $1.24 billion, a year-on-year increase of 9.4%, while excluding self-operated products and live e-commerce, total revenue was $1.09 billion, up 18.7% year-on-year [8] - The operating cash inflow for FY2025Q4 was $399 million, with capital expenditures of $65.9 million [8] - The company expects a 2% to 5% year-on-year growth in net revenue for FY26Q1 and a 5% to 10% growth for FY2026 [8] - The core business showed robust performance, with revenue from overseas exam preparation and consulting growing by 14.6% and 8.2% respectively, and domestic exam preparation for adults and college students increasing by approximately 17.0% [8] - Non-GAAP net profit for FY2025Q4 was $98.08 million, a year-on-year increase of 59.4%, indicating significant improvement in core education business profitability [8] Financial Forecasts - Total revenue projections for FY2024A to FY2028E are $4.314 billion, $4.900 billion, $5.372 billion, $5.854 billion, and $6.277 billion respectively, with year-on-year growth rates of 43.89%, 13.60%, 9.63%, 8.96%, and 7.24% [1][9] - The forecasted Non-GAAP net profits for FY2024A to FY2028E are $464 million, $517 million, $577 million, $632 million, and $685 million, with growth rates of 79.15%, 11.44%, 11.57%, 9.60%, and 8.38% respectively [1][9] - The report highlights a significant increase in operating profit for Non-GAAP, which is projected to reach $688.83 million by FY2028 [9]

Core Viewpoint - New Oriental Education Technology (Group) Co., Ltd. reported a 9.4% year-over-year increase in revenue for the fourth quarter of fiscal year 2025, reaching $1.243 billion, while net revenue excluding certain business segments rose by 18.7% [1][3] Financial Performance - For the fourth quarter of fiscal year 2025, New Oriental's net revenue was $1.243 billion, up from $1.137 billion in the same quarter last year, marking a 9.4% increase [1][2] - The company reported an operating loss of $8.674 million for the quarter, compared to an operating profit of $1.050 million in the previous year [2] - Net profit attributable to New Oriental shareholders was $7.1 million, a decrease of 73.7% year-over-year [3] Business Segments - Revenue from overseas exam preparation and consulting services grew by approximately 14.6% and 8.2% respectively [3] - Domestic exam preparation services for adults and college students recorded a year-over-year growth of about 17.0% [3] - New educational businesses maintained strong growth, with a revenue increase of 32.5% [3] Shareholder Returns - The board approved an extension of the share repurchase program, increasing the total authorized repurchase value from $400 million to $700 million [3][4] - As of May 31, 2025, the company repurchased approximately 14.5 million American Depositary Shares (ADS) for a total value of about $700 million [4] Deferred Revenue and Cash Position - As of May 31, 2025, New Oriental's deferred revenue balance was $1.955 billion, an increase of 9.8% from $1.78 billion a year earlier [5] - The company reported cash and cash equivalents of $1.612 billion, with additional short-term investments totaling $1.874 billion [5] Future Guidance - For the first quarter of fiscal year 2026, the company expects net revenue to be between $1.464 billion and $1.507 billion, representing a year-over-year growth rate of 2% to 5% [6] - For the full fiscal year 2026, net revenue is projected to be between $5.145 billion and $5.39 billion, indicating a growth rate of 5% to 10% [7] Market Position - As of the latest closing, New Oriental's stock price was HKD 36.5, with a market capitalization of HKD 59.688 billion [8]

Core Insights - New Oriental's net revenue for the fiscal year 2025 reached $4.9 billion, representing a year-on-year increase of 13.6% [1][2] - The net profit attributable to shareholders was $372 million, up 20.1% compared to the previous year [1][2] Fiscal Year 2025 Summary - Total net revenue: $4,900,262,000, an increase of 13.6% from $4,313,586,000 in fiscal year 2024 [2] - Operating profit: $428,250,000, a rise of 22.2% from $350,425,000 [2] - Non-GAAP operating profit: $554,228,000, up 15.8% from $478,786,000 [2] - Net profit attributable to shareholders: $371,716,000, an increase of 20.1% from $309,591,000 [2] - Non-GAAP net profit attributable to shareholders: $517,071,000, up 11.4% from $463,956,000 [2] Q4 Fiscal Year 2025 Summary - Q4 net revenue: $1,243,155,000, a year-on-year increase of 9.4% from $1,136,679,000 [3][5] - Q4 net profit attributable to shareholders: $7,100,000, a decrease of 73.7% from $26,972,000 [3][5] - Q4 operating loss: $8,674,000, compared to an operating profit of $10,527,000 in the same quarter last year, a decline of 182.4% [3][5] - Non-GAAP net profit for Q4: $98,083,000, an increase of 59.4% from $61,539,000 [5] Business Segment Performance - Core education business revenue (excluding self-operated products and live e-commerce) grew by 18.7% year-on-year [5] - Revenue from overseas exam preparation and consulting services increased by approximately 14.6% and 8.2%, respectively [5] - Domestic exam preparation for adults and university students recorded a year-on-year growth of about 17.0% [5] - New business segments (non-subject tutoring, intelligent learning systems) saw a revenue increase of 32.5% year-on-year [5] Financial Position - As of May 31, 2025, New Oriental had cash and cash equivalents amounting to $1.612 billion [9] - The company's share buyback plan has increased to a total value of $700 million, up from the original $400 million [9] - On July 30, 2025, New Oriental's stock closed at HKD 36.5, with a total market capitalization of HKD 60.4 billion [9]