Core Insights - The company reported a revenue of $1.523 billion for FY26Q1, a year-on-year increase of 6.1%, exceeding the previous guidance [1] - Non-GAAP operating profit reached $336 million, up 11.3% year-on-year, with an operating profit margin of 22%, an increase of 1 percentage point [1] - The company announced a three-year shareholder return plan, committing to return over 50% of the previous year's net profit through cash dividends and share buybacks starting FY26 [2] Financial Performance - The company’s revenue for FY26Q1 was $1.523 billion, surpassing the upper limit of the previous guidance [1] - Non-GAAP operating profit was $336 million, reflecting an 11.3% increase year-on-year, with a profit margin of 22% [1] - The net profit attributable to shareholders was $241 million, a slight decrease of 1.9% year-on-year, primarily due to dividend withholding tax [1] Business Segments - The K12 and university business segments showed significant recovery, with new education business revenue growing by 15.3% year-on-year [1] - Non-academic courses have been launched in approximately 60 cities, attracting around 530,000 students [1] - The adult and university exam preparation business grew by about 14.4% year-on-year, continuing the recovery trend in exam preparation and vocational training [1] Shareholder Returns - The company plans to distribute approximately $190 million in cash dividends this year, equating to $0.12 per share [2] - A maximum of $300 million in share buybacks is planned over the next 12 months, totaling a return of about 132% of FY25 net profit [2] - The projected dividend yield is approximately 2.0% [2] Future Outlook - Management guidance for FY26Q2 revenue is between $1.132 billion and $1.163 billion, representing a year-on-year growth of 9-12% [2] - For the full FY26, revenue is expected to be between $5.145 billion and $5.390 billion, indicating a growth of 5-10% [2] - The company aims to enhance AI teaching and digital efficiency, optimizing course experience and operational efficiency, which is expected to steadily improve profitability [2] Valuation - The projected net profits for FY26-28 are estimated at $450 million, $492 million, and $531 million respectively [3] - Using a sum-of-the-parts valuation method, the education segment is valued at approximately HKD 769 billion based on a 22x P/E ratio [3] - The total group valuation is approximately HKD 898 billion, translating to a target price of HKD 56.86 per share, maintaining a "buy" rating [3]

Investment Rating - The report maintains a "Buy" rating for the company with a target price not specified [5] Core Views - The company reported FY25Q3 revenue of $1.2 billion, a decrease of 2% year-over-year, with Non-GAAP operating profit at $140 million, down 0.2%, and Non-GAAP net profit attributable to shareholders at $110 million, down 14% [1] - Excluding self-operated products and live e-commerce, revenue grew by 21.2% this quarter, with overseas exam preparation and consulting revenues increasing by approximately 7.1% and 21.4%, respectively [2] - The company is focusing on sustainable long-term growth by enhancing product quality and operational efficiency, while also integrating innovative technologies into its educational offerings [2][3] Financial Performance Summary - The Non-GAAP operating profit margin for the quarter was 13.3%, down from 15.1% in the same period last year, impacted by slower growth in overseas business and investments in newly integrated cultural tourism operations [3] - The company has adjusted its revenue forecasts for FY25-27 to $4.9 billion, $5.8 billion, and $6.8 billion, respectively, with Non-GAAP net profits projected at $460 million, $570 million, and $690 million [4]