Investment Rating - The report maintains a "Buy" rating for New Oriental Education Technology (9901 HK) with a target price of HKD 80.00, indicating a potential upside of 59.8% from the current price of HKD 50.05 [1][4]. Core Insights - The core education business remains robust, with a revenue of USD 1.44 billion for Q1 FY2025, reflecting a year-on-year growth of 30.5%. Excluding Dongfang Zhenxuan, revenue grew by 33.5% [1]. - Adjusted operating profit reached USD 300 million, a 23% increase year-on-year, with an adjusted operating margin of 21% [1]. - The company is expected to maintain a revenue growth of 30% for the fiscal year 2025, with an operating profit margin of 13% [2]. Summary by Sections Financial Performance - For FY2025, revenue is projected to reach USD 5.235 billion, with a year-on-year growth of 21.4% [3]. - Net profit is expected to be USD 563 million, with an EPS of USD 3.40, reflecting a growth of 49% year-on-year [3]. - The company’s P/E ratio is projected to be 1.9 for FY2025, indicating attractive valuation [3]. Business Segments - Traditional business segments such as study abroad preparation and consulting showed year-on-year revenue growth of 18.8% and 20.7% respectively, contributing approximately 50% to total revenue [1]. - New business segments experienced a 50% year-on-year revenue increase, contributing about 24% to total revenue [1]. - The number of teaching points increased to 1,089 as of August 31, 2024, with a management target of 20-25% expansion for FY2025 [1]. Market Outlook - The report suggests that New Oriental remains a leading player in the education training industry, with opportunities to adjust its product structure in response to market demand [2]. - The company is expected to benefit from scale effects due to last year's expansion of teaching points, which will enhance profitability [1].
新东方-S：核心教育业务仍表现稳健，估值有修复空间