Morgan Stanley has released a report, lowering the net profit forecast for new oriental-S (09901.HK) for the 2025 to 2027 fiscal years to be between 11.6% and 13.3%, based on the downward revision of the company's revenue forecast and non-GAAP operating profit forecast. The target price for the stock in Hong Kong has been reduced from 71 yuan to 63.1 yuan, with the target forecasted PE ratio for the 2025 fiscal year maintained at 25 times, and the investment rating is "outperform" the market.

The bank expects the non-academic K9 business to remain strong, with growth in overseas exam preparation business in the first quarter of the 2025 fiscal year either accelerating or slowing down. The bank believes that the main anchor, Dong Yuhui, has split from the company since the end of July and in the first quarter of the 2025 fiscal year recorded expenses related to the east buy (01787.HK) for the last quarter. The bank also believes that the company has the ability to increase shareholder returns through regular dividends and points out that the company has a net cash of 4.9 billion US dollars, equivalent to 42% of the market cap.