The Zhitong Finance App learned that First Shanghai released a research report stating that it maintains the New Oriental-S (09901) “buy” rating. Currently, the total amount of cash/short-term investments/time deposits in hand is US$4.76 billion, and its financial strength is strong. According to DCF, WACC is 11%, a sustainable growth of 3%, and the target price was adjusted to HK$87.1.

The bank said that maintaining optimism about the long-term development prospects of the industry, after the “double reduction”, the supply of high-quality education services was drastically reduced, and the new business (non-subject training/intelligent learning machine business) quickly filled the market gap; the study abroad business/university and adult business, leading companies will gradually increase their market share and achieve rapid growth after the industry is cleared; the high school business will maintain good operating margins and contribute cash flow to support the company's development; New Oriental is the fastest and most successful company “after double reduction”, and the bank is optimistic about the company's development for a long time.