According to a research report released by J.P. Morgan Chase, the core business of New Oriental-S (09901) continues to grow strongly, and its revenue and operating profit for the 2025 fiscal year are expected to increase by about 30% and 40%, respectively. The bank rated New Oriental “increased its holdings” with a target price of HK$66.
According to the report, New Oriental has continuously exceeded its revenue guidance for the past 9 quarters, but the extent of exceeding guidance has shrunk in recent quarters, leaving investors disappointed. Furthermore, New Oriental's profit margin has been lower than market expectations for the past 3 quarters, and New Oriental's profit margin has been lower than market expectations for the past 3 quarters.
J.P. Morgan pointed out that New Oriental showed a record high profit in the new quarter. Despite being dragged down by Oriental selection, operating profit reached 0.3 billion US dollars, while the operating profit of the core education business increased 47% year over year, reaching the highest profit margin in 7 years. The bank expects New Oriental's upcoming November quarterly results to meet market expectations, whether in terms of revenue or operating margins.