Gelonghui, January 25 | BOC International published a research report saying that in the second quarter of the 2024 fiscal year, New Oriental was driven by the growth of teaching services and all business lines of Oriental Selection. Revenue increased 36% year-on-year to US$870 million, exceeding the bank's and market expectations by 6% and 7% respectively. Adjusted operating profit was US$51 million, with an operating margin of 5.9% compared to 2.6% in the same period last year; adjusted net profit reached US$50 million. Benefiting from increased operating leverage brought about by revenue growth, the Group's corresponding net interest rate is 5.8%. The bank said that New Oriental's management revenue guidelines for the next quarter (42-45% increase) are better than previous market expectations by about 15%. In terms of operating profit, Dongfang Selection's profit margin may show a downward trend during the expansion process, but the operating profit margin for the third quarter is expected to increase by 1 percentage point to 12.7% year-on-year. The bank raised the Group's revenue forecast for FY2024 and FY25 by 8% and 10%, respectively, while the profit forecast increased by 6% and 8%. The target price was raised from HK$70 to HK$75, maintaining a “buy” rating.