HSBC Global Research published a report stating that under the conditions of a stable regulatory environment in the mainland and resilient demand for education services, the bank maintains an optimistic outlook for the tutoring Business of New Oriental (09901.HK).

The bank believes that although competition faced by New Oriental has intensified compared to the same period last year, the risks are controllable because the company is a nationally leading Institution with a strong brand image; it possesses high-quality teaching standards in terms of teaching materials and teachers; this year, its market share is only about 2.4%, indicating ample room for improvement. However, the bank expects the company's short-term growth prospects may be affected by adjustments in the live streaming e-commerce Business.

In addition, HSBC Global Research has lowered the revenue forecast for New Oriental for 2025 to 2027 by 2% to reflect a more pessimistic outlook for the e-commerce Business, but broadly maintains its forecast for operating profit. The Target Price has been adjusted from 75 yuan to 72 yuan, reiterating a "Buy" rating.