Investment Rating - The investment rating for the company is "Outperform the Market" [5] Core Views - The company's education business performed well, with non-e-commerce revenue growing by 31% year-on-year, slightly exceeding previous management guidance. However, the e-commerce business negatively impacted overall profit performance [1][8] - For FY2025Q2, the company achieved net revenue of 894 million, up 31.3%, surpassing prior guidance of 25%-28% [1][8] - The company anticipates non-e-commerce revenue growth of 18-21% for FY2025Q3, which is lower than the initial 30% growth forecast due to external consumption pressures [3][17] - The company is actively responding to industry trends by launching targeted programs, such as early study abroad training for youth, to mitigate impacts from high-end product demand pressures [18] Summary by Sections Financial Performance - In FY2025Q2, the company reported a net profit of 35.54 million, primarily due to the impact of the subsidiary's divestiture [1][8] - The operating profit for FY2025Q2 was 27.58 million, down 45.8% [1][8] Business Segments - The education new business segment grew by 42.6% year-on-year, while high school training increased by 20%, maintaining strong performance [2][11] - The e-commerce business saw a decline of 23% year-on-year due to the completion of the divestiture of "With Huixing" [2][11] - Deferred revenue as of the end of FY2025Q2 was $1.961 billion, up 19.2% year-on-year, although the growth rate has slowed compared to previous quarters [12][15] Capacity Expansion - The company expanded its capacity by 5% quarter-on-quarter, with the number of schools and learning centers reaching approximately 1,143, a 12% increase year-on-year [12][15] - The company remains on track to achieve its annual capacity expansion plan of 20-25% [12]
新东方-S：FY2025Q2点评：当期教育业务表现良好，电商业务及下期营收指引扰动情绪