BOC International released a research report stating that the target price of the New Oriental-S (09901) was lowered to HK$75, maintaining the “buy” rating. New Oriental's profit forecast and valuation were adjusted based on business data revealed for the first quarter of FY2025.
The bank believes that the company's short-term overall performance growth will still be affected by the uncertainty of Oriental Selection (01797) business, but the education and cultural tourism business is still showing steady performance. Although there is still uncertainty about Oriental Selection's profit contribution, the contribution to New Oriental's overall profit/loss is small.
The bank said it maintained its forecast of 31% revenue growth for New Oriental's 2025 fiscal year and optimized the adjusted operating margin by 1 percentage point to 13% year over year to 0.58 billion US dollars. Revenue for the second fiscal quarter is expected to be $0.87 billion, up 28% year over year, while management guidance is 25%-28%.
