New Oriental-S (09901) fell more than 8% in early trading, and as of the time of writing, it has fallen 6.96%, reporting HKD 53.5, with a turnover of 28.2342 million HKD.
According to the smart finance and economics APP, New Oriental-S (09901) fell more than 8% in early trading, and as of the time of writing, it has fallen 6.96%, reporting HKD 53.5, with a turnover of 28.2342 million HKD.
On the news front, East Buy announced that it will sell its subsidiary to Deng Yuhui, priced at 76.585 million yuan. The statement stated that with Mr. Deng's departure from the group, the group will no longer be able to continue operating the target company. After completion, the group will continue to operate and expand its self-operated products and live broadcast e-commerce business under the "East Buy" brand.
Swhy pointed out that Dong Yuhui, the head anchor of its subsidiary, East Buy, has resigned. As New Oriental holds 57.04% of East Buy, East Buy's contribution to New Oriental's revenue in the 25th and 26th fiscal years will decrease by USD 250 million and USD 320 million, respectively, with limited impact from its e-commerce business. The bank believes that with the sustained high growth in the education business, and the acceleration of production capacity expansion, the market will focus on the company's growth potential. Therefore, the pressure on profit margin caused by the pre-placement of cost and expenses under production capacity expansion will no longer restrict the improvement of company valuation.