NEW ORIENTAL-新东方-S：2025财年二季报点评：2Q25FY核心业务超预期，2H25FY出国业务或增速放缓

Investment Rating - The report maintains a "Recommended" rating for the company [7]. Core Insights - The company's core business performance exceeded expectations in Q2 FY2025, with revenue of $1.039 billion, a year-over-year increase of 19.4%, and a net profit of$ 31.93 million, up 6.2% year-over-year [1]. - The core business revenue, which includes education and cultural tourism, grew by 31.3% year-over-year, reaching $894 million, surpassing previous guidance [2]. - The company anticipates a slowdown in growth for its overseas business in the second half of FY2025, projecting a revenue increase of approximately 15% for overseas study-related services due to rising costs and changing parental attitudes [3]. Summary by Sections Financial Performance - Q2 FY2025 revenue was$ 1.039 billion, with a year-over-year growth of 19.4%. Operating profit was $19.26 million, down 9.8% year-over-year, while net profit was$ 31.93 million, up 6.2% year-over-year [1]. - The core business (education + cultural tourism) revenue reached $894 million, a year-over-year increase of 31.3%, exceeding the upper limit of previous guidance [2]. Business Segments - The overseas examination and consultation revenue grew by 21.1% and 31.0% year-over-year, while domestic examination revenue increased by 34.9% [2]. - The K9-related new business saw a year-over-year growth of 42.6%, driven by strong demand and stable capacity expansion [2]. Future Guidance - For Q3 FY2025, the company expects core business revenue to be between$ 1.0073 billion and $1.0325 billion, representing a year-over-year growth of 18-21% [3]. - The anticipated slowdown in overseas business growth is attributed to high demand fatigue and rising overseas study costs [3]. Investment Projections - The report projects total revenue for FY2025 to be$ 4.873 billion, with a compound annual growth rate (CAGR) of approximately 14% over three years [5]. - Non-GAAP net profit is expected to be $475 million for FY2025, with a CAGR of about 20% over three years [5].