New Oriental-S (09901) rose more than 4% at the end of the session. As of press release, it was up 4.52% to HK$48.6, with a turnover of HK$0.188 billion.
The Zhitong Finance App learned that New Oriental-S (09901) rose more than 4% at the end of the session. As of press release, it had risen 4.52% to HK$48.6, with a turnover of HK$0.188 billion.
Guoxin Securities pointed out that after the implementation of the “double reduction” policy in 2021, industry supply was drastically cleared. According to data from the Ministry of Education in October 2022, the number of offline K9 subject training institutions was nearly 96% lower than in July 2021. Starting in 2023, the regulatory authorities will re-examine the rationality of training requirements. Non-disciplinary training has ushered in development opportunities, but the industry is still showing a “shortage of superior supply - strong demand” trend. According to estimates, the size of the K12 education and training market will return to before the “double reduction” in 2025, and the share of leading institutions is expected to increase as leading companies expand production capacity and raise compliance standards in the industry.
The bank pointed out that New Oriental is a leader in the current transformation of the education and training industry. Stock prices have recently declined due to disruptions in e-commerce business operations and increased investment in education. Along with Oriental Selection's announcement to divest “walk with Hui” and operations gradually return to the right track, the education and training business represented by the new education business has maintained high growth and profit leverage continues to show. The company is at the starting point of a new round of growth.