Morgan Stanley released a report, lowering the forecast of new oriental's net income under non-generally accepted accounting principles for the fiscal years 2025 to 2027 to between 11.6% and 13.3%, based on the downward revision of the company's revenue forecast and non-generally accepted accounting principles operating profit forecast. The bank lowered its target price for its Hong Kong stocks from 71 Hong Kong dollars to 63.1 Hong Kong dollars, with the target forecast for fiscal year 2025 maintaining a pe ratio of 25 times and an investment rating of "outperform the market".
The bank expects the non-academic K9 business to remain strong, with overseas exam preparation business growing or slowing down in the first quarter of the fiscal year 2025. The bank believes that the main anchor Dong Yuhui was spun off from the company at the end of July, and the first quarter of fiscal year 2025 was the last quarter for east buy to record related expenditures. The bank also believes that the company has the ability to increase shareholder returns through regular dividends, and points out that the company has 4.9 billion US dollars in net cash, equivalent to 42% of its market cap.
