Posted on April 25,$NEW ORIENTAL-S (09901.HK)$After the results, it opened nearly 15% lower, and US stocks closed down nearly 14% overnight. As of press release, it decreased by 12.91% to HK$61.75, with a turnover of HK$865 million.

According to the news, New Oriental announced the results for the 3rd quarter of fiscal year 2024 yesterday. The group achieved net revenue of US$1,257 million, up 60.1% year on year; operating profit of US$113 million, up 70.6% year on year; net profit attributable to New Oriental shareholders of US$87.167 million, up 6.8% year on year; adjusted net profit to mother of US$105 million, lower than the agency's previous forecast of US$120 million; and net profit margin of 8.7%, compared with 13% for the same period last year.

According to BOC International, revenue for the fourth quarter is expected to increase 38% to US$1.18 billion (management guidelines: 28%-31%), and operating profit margin may drop 3 percentage points to 6% year over year, mainly affected by increased investment in Oriental selection and low season education business and cultural tourism investment. The stock price closed down 14% after the results were announced, mainly affected by short-term pressure on profit margins. The current price corresponds to 20 times the price-earnings ratio of the education business. The bank believes that education and training demand and the company's business performance are still steady. It is expected that education revenue will increase by 30% in fiscal year 2025, and profit margins will continue to be optimized.