On August 1st, Guolonghui | BOCOM International issued a report stating that New Oriental's last quarter's revenue was 1.1 billion US dollars, basically in line with expectations, with a year-on-year increase of 32%, mainly driven by growth in new education business. Adjusted operating profit was 36 million US dollars, a year-on-year decrease of 54%, lower than the bank's expected 69 million US dollars, with a corresponding adjusted operating profit margin of 3.2%, a year-on-year decrease of 5.9 percentage points, mainly due to the short-term impact of accelerated teaching point expansion, cultural and tourism business investment, and employee salary and incentive improvement. Adjusted net profit was 37 million US dollars, lower than the bank and market expectations of 77 million and 72 million US dollars, respectively. BOCOM International expects New Oriental's first quarter revenue for FY2025 to increase by 33% year-on-year to 1.46 billion US dollars, and excluding the revenue from Dongfang Zhenxuan, the expected revenue is about 1.26 billion US dollars, a year-on-year increase of 34%. The spin-off from Xueda Education may still affect the overall operating profit margin in the first quarter, decreasing by 3 percentage points year-on-year. However, excluding Dongfang Zhenxuan, the expected operating profit margin is expected to increase by 2 percentage points year-on-year to 19%, mainly driven by the scale effect of the peak education season. The bank believes that the demand for education and training and the company's business performance are still solid. Considering the investment in cultural and tourism business, the sale of Xueda Education, and the subsequent reform of Dongfang Zhenxuan, the bank has lowered the group's operating profit margin for FY2025 to 11.3%. The stock's Hong Kong stock target price was lowered from HKD 89 to HKD 80, with a "buy" rating maintained.