The Zhitong Finance App learned that according to a research report released by BOC International, the estimated revenue of New Oriental-S (09901) in 2025-2026 is 5.4 billion and 6.5 billion US dollars, respectively, with operating profit margins of 14%/16%, respectively. Based on a price-earnings ratio of 25 times in fiscal year 2024 and without considering the value contributions brought by the Group's Oriental Select (01797) proprietary products and live e-commerce business, the target price of Hong Kong stocks was maintained at HK$89 and the “buy” rating.
The bank expects New Oriental's revenue for the fourth quarter ending the end of May 2024 to increase 31% year-on-year to US$1,128 million. Offline teaching sites may accelerate expansion in the fourth quarter, increasing 10% month-on-month, and the impact on the Group's overall gross margin fell 0.4 percentage points year on year. However, BOC International believes that this is mainly for the July-August summer enrollment plan, which will facilitate enrollment in the first fiscal quarter of fiscal year 2025 (ending at the end of May).