Greatfortune Daily, October 24th | Daiwa published a research report stating that the revenue growth and operating profit margin guidance for the fiscal quarter ending in late November of New Oriental were weaker than expected, and the revenue and gross profit expansion guidance for the fiscal year 2025 are maintained. The target price of its H shares was reduced from HK$78 to HK$70 by the bank, maintaining a 'buy' investment rating, slightly reducing the revenue forecast for each year from fiscal year 2025 to fiscal year 2027 by 0% to 1%, and reducing the earnings forecast per share by 2% to 9%. The bank pointed out that New Oriental maintains the annual revenue growth of 30% and the annual capacity expansion target of 20% to 25% for fiscal year 2025. The company is expected to accelerate its revenue in the second half of fiscal year 2025 by the end of May next year because new products will be ready to cope with the trend of consumer downgrading. The bank now expects that the revenue growth of the company's core education business for fiscal year 2025 (excluding East Buy) will be 30% annually, and the non-GAAP operating profit margin is expected to expand by 140 basis points to 12.9% annually.