Core Viewpoint - Guosen Securities maintains an "outperform" rating for New Oriental-S (09901) and raises the company's net profit forecast for the fiscal years 2026-2028 to $480 million, $560 million, and $620 million respectively, with the latest market capitalization corresponding to PE ratios of 19.5, 17.0, and 15.2 times [1] Group 1: Revenue and Profitability - In FY2026Q2, the company achieved net revenue of $1.191 billion, a year-on-year increase of 14.7%, exceeding market expectations of 12% [1] - The company reported a non-GAAP operating profit of $89.13 million, reflecting a significant increase of 206.9% [1] - Deferred revenue reached $2.162 billion, marking a year-on-year growth of 10.2% [1] Group 2: New Education and Overseas Study Business - The new education business remains a core growth driver, benefiting from an increase in renewal rates, which grew by 21.6% year-on-year, accelerating from 15.3% in FY26Q1 [2] - Non-subject tutoring services covered approximately 1.058 million students, a year-on-year increase of 6.4% [2] - The overseas study-related business showed resilience, with total revenue slightly increasing year-on-year, outperforming previous market expectations of a 5% decline [2] Group 3: Quality Development and Operational Efficiency - As of FY26Q2, the company had 1,379 teaching locations, a 2% increase, continuing its cautious expansion strategy focused on high-quality development [3] - The non-GAAP operating profit margin improved by 4.7 percentage points to 7.5% year-on-year [3] - Gross margin was reported at 53.3%, an increase of 1.3 percentage points, while the management expense ratio remained stable at 31.4% [3] Group 4: Future Outlook - For FY2026Q3, the company expects a year-on-year revenue growth of 11-14% and has raised its full-year revenue growth guidance to 8-12%, up from the previous estimate of 5-10% [4]

Core Viewpoint - Guosen Securities maintains an "outperform" rating for New Oriental-S (09901) and raises the company's net profit forecast for the fiscal years 2026-2028 to $480 million, $560 million, and $620 million, respectively, with the latest market capitalization corresponding to PE ratios of 19.5x, 17.0x, and 15.2x [1] Group 1: Revenue and Profitability - In FY2026Q2, the company achieved net revenue of $1.191 billion, a year-on-year increase of 14.7%, exceeding market expectations of 12% [1] - The company reported a significant increase in operating profit to $89.13 million, up 206.9% year-on-year, indicating continuous improvement in profitability [1] - Deferred revenue reached $2.162 billion, reflecting a year-on-year growth of 10.2% [1] Group 2: New Education and Study Abroad Business - The new education business remains a core growth driver, benefiting from an increase in retention rates, which grew by 21.6% year-on-year, accelerating from 15.3% in FY26Q1 [2] - Non-academic tutoring services reached approximately 1.058 million students, a 6.4% increase, as the company focuses on improving teaching quality and retention rates [2] - The study abroad-related business showed resilience, with total revenue slightly increasing year-on-year, outperforming previous market expectations of a 5% decline [2] Group 3: Quality Development and Operational Efficiency - As of FY26Q2, the company had 1,379 teaching locations, a 2% increase, continuing its cautious expansion strategy focused on high-quality development [3] - The Non-GAAP operating profit margin improved by 4.7 percentage points to 7.5%, with a gross margin of 53.3%, up 1.3 percentage points [3] - The company plans to enhance profitability through organizational optimization and technological advancements [3] Group 4: Future Outlook - For FY2026Q3, the company expects a year-on-year revenue growth of 11-14%, with an upward revision of the full-year revenue growth forecast to 8-12%, previously estimated at 5-10% [3]

Core Viewpoint - Haitong International maintains an "outperform" rating for New Oriental-S (09901) and raises the target price from HKD 49 to HKD 52 based on upgraded performance expectations [1] Group 1: Financial Performance - In Q2 FY26, the company's total revenue increased by 15% year-on-year to USD 1.191 billion, exceeding consensus expectations by 3% and surpassing the previous guidance of 9%-12% [1] - Non-GAAP operating profit surged by 223% year-on-year to USD 89 million, exceeding consensus expectations by 62%, with a Non-GAAP operating profit margin of 7.5%, up 2.8 percentage points from the consensus estimate of 4.7% [1] - Deferred revenue reached USD 2.1615 billion, a year-on-year increase of 10.2%, consistent with the 10% growth in Q1 FY26 [1] Group 2: K12 Business Outlook - K12 business revenue is expected to accelerate growth in Q3 FY26, driven by improved retention rates and increased course offerings during the winter break [2] - The K12 business revenue is projected to grow by 19% year-on-year to USD 815 million, with high school business expected to grow by 18% and K9 new business anticipated to increase by 23% [2] Group 3: Study Abroad Business Challenges - The study abroad sector remains under pressure, impacting the overall revenue of the core education segment [3] - Despite a 1% year-on-year growth in Q2 FY26, the company is expected to adopt a conservative outlook for Q4 FY26 due to the seasonal characteristics of the study abroad consulting business [3] - The company anticipates a decline in study abroad revenue next year due to the ongoing instability in the industry and the merger of exam preparation and study abroad consulting businesses [3] Group 4: Cost Reduction and Efficiency Improvement - The core education segment's operating profit margin improved by 3 percentage points in Q2 FY26, attributed to effective cost reduction and efficiency measures [4] - The company expects these measures to continue yielding results, with projected Non-GAAP operating profit margins increasing by 1.4 and 1.6 percentage points year-on-year to 13.4% and 12.9% for Q3 FY26 and FY26, respectively [4]

Core Viewpoint - Citigroup's research report indicates that New Oriental-S (09901.HK) management has confirmed that second-quarter performance exceeded expectations, with a profit margin expansion of 300 basis points (excluding Dongfang Zhenxuan), and expressed high confidence in exceeding annual targets [1] Group 1: Financial Performance - K12 business is accelerating growth in the third quarter, with high school business guidance up 18% and K9 business guidance up 23% (in USD) [1] - This strong performance is sufficient to offset the weakness in the annual overseas business, which is projected to be between 0% to -5% [1] - Management has stated that revenue and profit will definitely exceed expectations, showing confidence in achieving targets for the year [1] Group 2: Strategic Developments - New Oriental is merging its overseas exam preparation business with its study abroad consulting business to reduce customer acquisition costs and break down departmental barriers, marking a key strategic shift [1] - The upward revision of high school business guidance to 18% reflects the expansion of the OMO model and efficiency improvements driven by AI workplace systems [1] - Improved retention rates in K9 support an annual growth of over 20% [1] Group 3: Analyst Rating - Citigroup maintains a "Buy" rating for New Oriental with a target price of HKD 59 [1]

Core Viewpoint - The company is facing challenges due to a slowdown in overseas business but has managed to improve its Non-GAAP operating profit margin through cost optimization and operational efficiency efforts [2]. Financial Performance - The company reported a first-quarter revenue of $1.52 billion and estimates that total revenue for the fiscal year could reach up to $5.4 billion [4]. - For the second quarter, the company expects revenue to be between $1.132 billion and $1.163 billion, representing a year-over-year increase of 9% to 12% [2]. - The full-year revenue forecast is between $5.145 billion and $5.39 billion, indicating a year-over-year growth of 5% to 10% [2]. Business Segments - The growth in the company's new education business has slowed, dropping from 32% in the previous fiscal year's fourth quarter to 15.3% in the current fiscal year [3]. - The company anticipates a 5% to 10% growth in its overseas exam preparation business for the fiscal year, while revenue from study abroad consulting is expected to remain flat, a significant slowdown from previous double-digit growth [3]. Market Position and Outlook - The company has established an efficient structure and system, with a strong operational record and brand effect, led by a capable management team [3]. - Despite current challenges and a stock price around HKD 50 with a price-to-earnings ratio of 25, the company remains a significant player in the industry and is worth monitoring for long-term potential [3].

Financial Data and Key Metrics Changes - Total net revenue increased by 6.1% year-over-year, reaching $1,412.6 million [4] - Non-GAAP operating margin improved to 22%, a year-over-year increase of 100 basis points [4] - Operating income rose by 6% year-over-year to $310.8 million [11] - Net income attributable to New Oriental decreased by 1.9% year-over-year to $240.7 million [12] - Net cash flow from operations was approximately $192.3 million [13] Business Line Data and Key Metrics Changes - Overseas test prep business revenue increased by about 1% year-over-year [5] - Overseas study consulting business revenue increased by about 2% year-over-year [5] - Adults and university students business revenue increased by 14% year-over-year [5] - New educational business initiatives recorded a revenue increase of about 15% year-over-year [7] Market Data and Key Metrics Changes - Non-academic tutoring business expanded to around 60 cities, with top 10 cities contributing over 60% of revenue [6] - Intelligent learning system and device business tested in around 60 cities, with top 10 cities contributing over 50% of revenue [7] - Integrated tourism-related business connected across 55 cities, with top 10 cities contributing over 50% of revenue [7] Company Strategy and Development Direction - The company is focused on enhancing operational resilience and sustainable profitability [4] - Continued investments in new education business initiatives, particularly in AI and OMO systems [8] - Strategic approach to capacity expansion and hiring to ensure quality offerings [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving margins and operational efficiency [15] - Guidance for total net revenue in Q2 2026 is projected to be between $1,132.1 million and $1,263.3 million, representing a year-over-year increase of 9%-12% [16] - Full fiscal year 2026 revenue guidance remains between $5,145.3 million and $5,390.3 million, indicating a year-over-year increase of 5%-10% [16] Other Important Information - Shareholder return plan includes a cash dividend of $0.12 per common share and a share repurchase program of up to $300 million [17][18] - Deferred revenue increased by 10% year-over-year to $1,906.7 million [14] Q&A Session Summary Question: Competition landscape in K-12 business - Management noted increased competition during summer but highlighted improved student retention and enrollment in autumn classes [22][23] Question: Share-based compensation increase - The increase in share-based compensation was attributed to grants issued to management and staff, with expectations of similar levels in upcoming quarters [28][29] Question: Overseas business growth breakdown - Overseas test prep for younger age groups grew over 25% year-over-year, while consulting business saw strong growth in non-U.S. and U.K. markets [34][35] Question: Operating margin outlook - Margin expansion was driven by better utilization and cost control, with expectations for continued improvement throughout the year [48][49] Question: Tax rate expectations - The effective tax rate was higher due to special circumstances, with expectations for it to remain elevated in the near term [53] Question: Shareholder return policy - The company plans to maintain a high payout ratio and continue share buybacks as part of its capital allocation strategy [40][41]

Core Insights - The company reported total revenue of £43.84 million (approximately $55.20 million) for Q2 of FY2025, a decrease from £48.53 million in the same period last year [1] - Net profit from continuing operations increased significantly by 223.6% year-over-year, reaching £3.20 million (approximately $4.03 million) [1] - Adjusted net profit from continuing operations rose by 179.5% to £3.50 million compared to £1.30 million in the previous year [1] Revenue Breakdown - Revenue from the school business was £26.60 million, a slight decline from £27.30 million year-over-year [1] - Revenue from study abroad consulting services grew by 6.2% to £11.90 million [1] Profitability Metrics - Operating profit from continuing operations was £2.30 million, reflecting a year-over-year increase of 7.2% [1] - Adjusted operating profit rose by 8.1% to £2.70 million from £2.50 million in the previous year [1] - Gross profit was £13.20 million, down from £15.00 million year-over-year, with a gross margin of 30.0% compared to 30.8% in the prior year [1] Earnings Per Share - Adjusted basic and diluted earnings per share were £0.03, up from £0.01 in the same period last year [1] Strategic Developments - The CEO highlighted steady progress in global expansion and enrollment efforts, reinforcing the resilience of the school business amid external pressures [2] - The total number of enrolled students remained stable at 2,669, with a notable 14.2% year-over-year increase in revenue per student in the U.S. [2] - The CFO noted improved operational efficiency and profitability, with a 13.7% decrease in sales, general, and administrative expenses as a percentage of revenue [3]