According to the research report published by Haitong Int'l, New Oriental's total revenue in the fourth quarter of this year met market expectations, but the adjusted operating profit margin was 3 percentage points lower than market expectations. The bank estimates that New Oriental's core revenue in the first quarter and full year of 2025 will increase by 34% and 32% respectively. The bank mentioned that with the increase of the profit margin of the new learning centers opened by New Oriental, the operating profit margin of its core education business may expand in the fiscal year 2025. The bank also expects that the core operating profit of New Oriental in 2025 will be $0.561 billion, with a profit margin of 13%, an increase of 1.5 percentage points year-on-year.

The bank believes that New Oriental can still easily reach the target of 15% standard net profit margin. Considering that the operating performance of East Buy has not been normalized, the bank has lowered New Oriental's PE ratio from 20 times to 18 times. In addition, considering the solid foundation of New Oriental's education business and sufficient cash, Haitong International recommends that investors be patient with the company. The bank also points out that under the current stable regulatory environment and moderate competition, New Oriental will continue to gain market share. As for East Buy, after its operation stabilizes, it will reshape New Oriental's cultural brand image and become a powerful marketing channel. Haitong International has lowered New Oriental's target price to $90 and reiterated its "outperform" rating.