Golden Horse Financial News | Bocom Intl issued a research report, maintaining its previous revenue growth expectations for New Oriental (09901) in the first quarter of the 2025 fiscal year, with total revenue expected to increase by 33% to 1.46 billion US dollars. Among them, the total revenue of non-Eastern Buy business is expected to be 1.247 billion US dollars, a year-on-year increase of 33%, within the company's guided range of 31-34%, compared to Visible Alpha's 31%/Bloomberg's 30.9%. The bank estimated adjusted operation profit of 0.32 billion US dollars, net income of 0.26 billion US dollars, corresponding to an adjusted operation profit margin of 21.9%, net income margin of 17.7%, mainly driven by the optimization of the year-on-year operation profit margin of non-Eastern Buy business after adjustment by about 2 percentage points.
The bank believes that New Oriental still maintains its leading position in international education, with the education business steadily expanding. Although the expansion progress in the 2025 fiscal year may be slower than that of the 2024 fiscal year, it will continue to bring profit margin optimization. The bank expects a compound annual growth rate of 24% for the education business revenue for the 2024-27 fiscal years, still maintaining a stable growth trend. Corresponding to the 12-month profit as of the end of February 2026, a 20 times price-earnings ratio is applied to the education business, without considering the value contribution of Eastern Buy, maintaining a target price of 80 Hong Kong dollars/103 US dollars, and maintaining a buy rating.
