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]