According to Zhitong Finance APP, Daiwa published a research report indicating that due to the slowing expansion of profit margins in the education business, it has reduced the earnings per share forecast for New Oriental-S (09901) for the fiscal year 2026 to 2027 by 6% to 7%. The firm maintains its long-term growth outlook and reiterates the "buy" rating, with the target price for H shares lowered from 70 HKD to 67 HKD.

The report states that the management reiterated its guidance target of 30% year-on-year revenue growth for the education business during the investor meeting. The management indicated that seasonal factors are the key reasons causing year-on-year fluctuations in revenue from the first to the second quarter of fiscal year 2025. Excluding cultural tourism activities, the firm estimates that year-on-year growth in its education revenue will remain stable.