Golden Horse Finance News | Bocom intl issued a research report stating that new oriental (09901) (excluding east buy) had a year-on-year increase of 33.5% in revenue in the first quarter of the 2025 fiscal year, which was basically in line with the bank's expectations; the adjusted operating profit margin was 24%, an optimization of 2.2 percentage points year-on-year, benefiting from the peak season in the education business and the economies of scale brought by last year's expansion of teaching points.
The bank pointed out that: 1) Traditional business: contributing approximately 50% of revenue, with a slight decrease in revenue growth rate for overseas exam preparation and high school income due to the impact of one-on-one business, while the growth of college student business accelerated. 2) New business: revenue increased by 50% year-on-year, contributing approximately 24% of revenue, an increase of 3 percentage points from the same period last year. 3) Management maintains the expectation of expanding teaching points by 20-25% for the 2025 fiscal year, consistent with the bank's expectations.
The bank expects a 28% year-on-year increase in revenue for the second quarter of the 2025 fiscal year (excluding east buy) (management guidance for a growth rate of 25-28%); the second quarter is the off-peak season of the year, with an estimated core business operating profit margin of approximately 1.7%, a year-on-year decrease of about 1 percentage point. The bank believes that although the company is currently affected by the uncertainty of subsidiary revenue/profit contributions in the short term, there is still an opportunity to timely adjust the education service product structure in line with market demand, with a stable growth in revenue and a continuous trend of profit margin optimization. Corresponding to the 12-month profit until the end of February 2026, giving an education business a 20 times pe ratio, maintaining a target price of HK$80/US$103, the current price of the company corresponds to a 15 times pe ratio for the calendar year 2025, attractive valuation, maintaining a buy rating.
