Group 1: New Oriental (EDU) - New Oriental's FY25Q4 net revenue increased by 9.4% year-on-year to $1.24 billion, exceeding previous guidance of $1.009 to $1.037 billion[5] - The company expects FY26Q1 net revenue to be between $1.46 billion and $1.51 billion, representing a year-on-year growth of 2% to 5%[6] - Non-GAAP net profit for FY25Q4 was $98.08 million, a 59.4% increase year-on-year[5] Group 2: Apple Inc. (AAPL) - Apple's total revenue for the quarter was $94.04 billion, a 9.6% year-on-year increase, surpassing Bloomberg's consensus estimate of $89.3 billion[16] - iPhone revenue grew by 8.2% year-on-year, while services revenue increased by 13.3%[16] - The company expects overall revenue growth for FY25Q4 to be in the mid to high single digits[16] Group 3: Hong Kong Stock Exchange (388) - The average daily trading volume for the Hong Kong Stock Exchange reached HKD 2.402 trillion in H1 2025, a 118% year-on-year increase[22] - The total market capitalization of the Hong Kong market grew to HKD 42.7 trillion, a 33% increase year-on-year[25] - The target price for Hong Kong Stock Exchange is set at HKD 500, representing a potential upside of 15.8% from the previous closing price[26] Group 4: HIMS & HERS HEALTH (HIMS) - HIMS reported Q2 revenue of $545 million, a 73% year-on-year increase, but a 7% decrease quarter-on-quarter[32] - The company expects Q3 revenue to be between $570 million and $590 million, with adjusted EBITDA projected at $60 million to $70 million[32] - The target price for HIMS is set at $62.1, indicating a 22% upside potential from the current price[34]

Group 1 - New Oriental reported FY2025 Q4 net revenue of $1.24 billion, a 9.4% increase, with an operating loss of $8.67 million and a net profit of $7.1 million, down 73.7% [1] - Non-GAAP operating profit reached $81.68 million, up 116.3%, and Non-GAAP net profit was $98.08 million, up 59.4% [1] - For FY2026 Q1, net revenue is expected to be between $1.464 billion and $1.507 billion, representing a growth of 2% to 5% [1] Group 2 - The core education business showed a recovery in profitability, with a gross margin of 54.2%, up 2 percentage points, while the operating profit margin was -0.7%, down 2 percentage points due to a one-time goodwill impairment of approximately $60 million [2] - Non-GAAP operating profit margin was 6.6%, up 3 percentage points, and excluding Oriental Selection, the Non-GAAP operating profit margin was 6.5%, up 4.1 percentage points [2] - The company is expected to experience a stable growth phase in its education business, with a three-year shareholder return plan to distribute at least 50% of the previous fiscal year's net profit to shareholders [2] Group 3 - As a leading player in the industry, New Oriental's advantages are highlighted in the current supply-demand landscape, despite challenges in overseas-related and cultural tourism businesses [3] - The company forecasts net profits of $490 million, $540 million, and $600 million for FY2026, FY2027, and FY2028, respectively, with Non-GAAP net profits of $550 million, $600 million, and $660 million [3] - The investment rating is maintained at "Buy" due to the anticipated steady growth of the education business alongside network capacity expansion [3]

Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The core education business is showing a recovery in profitability, with a significant increase in Non-GAAP operating profit and net profit for FY2025Q4. The company is also implementing a three-year shareholder return plan, committing to distribute at least 50% of the previous fiscal year's net profit to shareholders through dividends and/or share buybacks [3][4]. - The company is expected to achieve steady growth in its core education business despite challenges in overseas-related services and tourism business. The forecasted net profit for FY2026 is projected to be between $492 million and $544 million, with Non-GAAP net profit expected to be between $550 million and $660 million for FY2026 [4][5]. Financial Summary - For FY2025Q4, the company reported a net revenue of $1.24 billion, a year-on-year increase of 9.4%. The operating loss was $8.67 million, while the net profit attributable to shareholders was $7.10 million, a decrease of 73.7%. Non-GAAP operating profit was $81.68 million, an increase of 116.3%, and Non-GAAP net profit was $98.08 million, an increase of 59.4% [1][2]. - The gross margin for FY2025Q4 was 54.2%, up by 2 percentage points, while the Non-GAAP operating margin was 6.6%, an increase of 3 percentage points [3]. - The company expects FY2026Q1 net revenue to be between $1.464 billion and $1.507 billion, representing a growth of 2% to 5% [1][4]. Business Segments - Excluding self-operated products and live e-commerce, the net revenue for FY2025Q4 grew by 18.7%. The overseas examination and consultation services grew by 14.6% and 8.2%, respectively, while domestic examination services for adults and college students increased by 17.0%. New educational businesses saw a growth of 32.5% [2][3]. - The number of registrations for non-subject tutoring reached 918,000, an increase of 4.9%, and the active paid users of the intelligent learning system and devices reached 255,000, a growth of 36% [2].

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's financial report for the fourth quarter and full year of fiscal year 2025 shows a revenue increase but a significant decline in net profit due to goodwill impairment, indicating challenges in certain business segments and a strategic shift towards AI investments and new educational solutions [1][3][6]. Financial Performance - For the fourth quarter of fiscal year 2025, revenue reached $1.243 billion, a year-on-year increase of 9.4%, while net profit was $7.1 million, down 73.7% due to a $60.3 million goodwill impairment [1][2]. - Excluding the Oriental Selection business, the fourth quarter revenue was $1.089 billion, reflecting an 18.7% year-on-year growth [1]. - For the entire fiscal year 2025, total revenue was $4.9 billion, up 13.6%, and net profit was $371.7 million, a 20.1% increase [2]. Business Segment Performance - The overseas study preparation and consulting businesses saw revenue growth of approximately 14.6% and 8.2%, respectively, although growth rates have slowed compared to previous quarters [3]. - The new education business experienced a 32.5% revenue increase, with significant engagement in non-subject tutoring across 60 cities [3][4]. - The cultural tourism business reported a 71% revenue growth, driven by domestic and international study tours [4][5]. Cost and Impairment Issues - The significant drop in net profit was primarily attributed to a $60.3 million goodwill impairment related to past acquisitions of kindergartens, reflecting changes in policy and market conditions [6]. - Operating costs and expenses for the fourth quarter were $1.252 billion, up 11.2%, with stock-based compensation expenses increasing by 11% to $28.6 million [6]. Future Guidance - The company anticipates a revenue growth rate of 2%-5% for the first quarter of fiscal year 2026 and 5%-10% for the entire fiscal year, indicating a more stable and sustainable growth phase [6][7]. - The guidance now includes the Oriental Selection business, reflecting its operational stabilization after restructuring [7].

Core Insights - New Oriental achieved net revenue of $1.243 billion in FY25Q4, a year-on-year increase of 9.4%, while net profit attributable to shareholders was $7.1 million, down 73.7% year-on-year [1] - The core education business remained stable, but revenue growth guidance for FY26Q1 has decreased [1][2] - The company expects FY26Q1 net revenue to be between $1.464 billion and $1.507 billion, representing a year-on-year growth of 2%-5% [2] Revenue Breakdown - Excluding revenue from self-operated products and live e-commerce, FY25Q4 net revenue was $1.0885 billion, up 18.7% year-on-year, surpassing previous guidance [1] - Revenue from overseas exam preparation increased by 14.6%, while overseas consulting revenue rose by 8.2% in FY25Q4 [1] - Domestic exam preparation for adults and college students saw a year-on-year revenue increase of 17.0% in FY25Q4 [1] New Business Developments - Revenue from new educational services grew by 32.5% year-on-year in FY25Q4, with approximately 918,000 registrations and 255,000 active paying users for smart learning systems [2] - The number of operational outlets exceeded 1,300 by the end of FY25Q4, with expansion plans on track [2] Profitability and Margin Analysis - FY25Q4 operating profit margin was -0.7%, down from 0.9% in the same period last year, primarily due to a one-time goodwill impairment of $60.3 million in the kindergarten business [3] - Non-GAAP operating profit margin for FY25Q4 was 6.6%, an increase of 3.3 percentage points year-on-year [3] - The company anticipates that despite challenges in FY26Q1, profitability may still see year-on-year growth due to the turnaround of the live e-commerce segment and ongoing cost reduction efforts [3] Future Outlook - The company has announced a three-year shareholder return plan, intending to return 50% of the previous fiscal year's net profit to shareholders through dividends or buybacks [2] - Profit forecasts for FY26 and FY27 have been adjusted downwards to $481 million and $559 million, respectively, reflecting a conservative outlook due to macroeconomic pressures [3]

Core Viewpoint - New Oriental's FY25Q4 net revenue reached $1.243 billion, a year-on-year increase of 9.4%, while the net profit attributable to shareholders was $7.1 million, a decrease of 73.7% [4] Group 1: Financial Performance - FY25Q4 core education business maintained stability with net revenue (excluding self-operated products and live e-commerce) at $1.0885 billion, up 18.7% year-on-year, exceeding previous guidance [5] - The company expects FY26Q1 overall net revenue to be between $1.464 billion and $1.507 billion, representing a year-on-year growth of 2%-5% [6] - FY25Q4 operating profit margin was -0.7%, down from 0.9% in the same period last year, primarily due to a one-time goodwill impairment of $60.3 million in the kindergarten business [7] Group 2: Business Segments - In FY25Q4, the overseas examination preparation business revenue grew by 14.6%, and the overseas consulting business revenue increased by 8.2% [5] - The new education business saw a revenue increase of 32.5% year-on-year, with approximately 918,000 registrations and 255,000 active paying users for smart learning systems [5] - The company announced a three-year shareholder return plan, intending to return 50% of the previous fiscal year's net profit to shareholders through dividends or buybacks [6] Group 3: Future Outlook - Despite a significant slowdown in revenue growth for the overseas business and increased competition, the profitability from the Oriental Selection is expected to positively contribute to overall earnings [8] - The company aims to improve overall profit margins in FY26Q1 through cost reduction and efficiency enhancement measures [8]

Investment Rating - The report downgrades the investment rating of the company to "Accumulate" [1] Core Views - The company's FY25Q4 net revenue reached USD 1.243 billion, a year-on-year increase of 9.4%, while the net profit attributable to shareholders was USD 7.1 million, a decrease of 73.7% [3][4] - The core education business showed steady growth, but the overseas and cultural tourism businesses negatively impacted profits [4][6] - The company expects FY26Q1 net revenue to be between USD 1.464 billion and USD 1.507 billion, representing a year-on-year growth of 2%-5%, indicating a significant slowdown compared to previous guidance [5][7] Summary by Sections Revenue Performance - FY25Q4 net revenue (excluding self-operated products and live e-commerce) was USD 1.0885 billion, up 18.7% year-on-year, exceeding previous guidance [4] - The overseas examination preparation business revenue grew by 14.6%, and the overseas consulting business revenue increased by 8.2% [4] - Domestic examination preparation for adults and university students saw a revenue increase of 17.0% [4] Profitability - FY25Q4 operating profit margin was -0.7%, down from 0.9% in the same period last year, primarily due to a one-time goodwill impairment of USD 60.3 million in the kindergarten business [6] - Non-GAAP operating profit margin for FY25Q4 was 6.6%, an increase of 3.3 percentage points year-on-year [6] Financial Forecasts - The company has revised down its net profit forecasts for FY26 and FY27 to USD 481 million and USD 559 million, respectively, reflecting a 10% and 18% reduction [7][8] - The projected EPS for FY26, FY27, and FY28 are USD 0.29, USD 0.34, and USD 0.38, respectively, with corresponding P/E ratios of 15x, 13x, and 12x [7][8]

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]