New Oriental Education & Technology Group ADS

  • TickerN1U
  • ISINUS6475811070
  • SectorGeneral Retailers
  • CountryGermany

Analysts

ValuEngine Rating and Forecast Report for EDU

ValuEngine Rating and Forecast Report for EDU

UOB
Joyce Chan Pui Lai ...
  • Julia Pan Mengyao
  • K Ajith

Greater China Daily: Tuesday, January 21, 2020

KEY HIGHLIGHTS Results New Oriental Education & Technology Group (EDU US/BUY/US$135.75/Target: US$150.00) 2QFY20: Solid beat on margin improvement; continues to gain market share. Update Cathay Pacific Airways (293 HK/HOLD/HK$10.82/Target: HK$10.20) Dec 19 PLF improves but pneumonia outbreak casts a pall on recovery. TRADERS’ CORNER Baiyunshan (874 HK): Trading Buy Range Prada (1913 HK): Trading Buy Range

UOB
Julia Pan Mengyao

New Oriental Education & Technology Group - 2QFY20: Solid beat on margin improvement; continues to gain market share

2QFY20 revenue increased 31.5% yoy to US$785m, 2% higher than consensus estimates. Management attributes the accelerating revenue growth to the continued market share gain from smaller sector players. Non-GAAP operating margin expanded 7ppt yoy to 4.5%, beating our estimates by 2.5ppt, thanks to improving operating leverage. Management has guided for 3QFY20 revenue to come in at US$983.0m- 1,006.4m (up 23-26% yoy), in line with consensus estimates. Maintain BUY with target price of US$150.00.

UOB
Benyamin Mikael ...
  • Chong Lee Len
  • Jie Ying Chloe Tan
  • Julia Pan Mengyao
  • K Ajith
  • Keith Wee Teck Keong
  • Peerawat Dentananan

Regional Morning Notes - Tuesday, January 21, 2020

GREATER CHINA Results New Oriental Education & Technology Group (EDU US/BUY/US$135.75/Target: US$150.00): 2QFY20: Solid beat on margin improvement; continues to gain market share. Update Cathay Pacific Airways (293 HK/HOLD/HK$10.82/Target: HK$10.20): Dec 19 PLF improves but pneumonia outbreak casts a pall on recovery. INDONESIA Small/Mid Cap Highlights Surya Citra Media (SCMA IJ/NOT RATED/Rp1,600): Rate-card increase is the key to growth. MALAYSIA Update CIMB Group (CIMB MK/BUY/RM5.12/Target: RM6.50): We get the sense that management has turned more optimistic on the group’s loans growth outlo...

ValuEngine Rating and Forecast Report for EDU

ValuEngine Rating and Forecast Report for EDU

UOB
Joyce Chan Pui Lai ...
  • Julia Pan Mengyao
  • K Ajith

Greater China Daily: Tuesday, January 21, 2020

KEY HIGHLIGHTS Results New Oriental Education & Technology Group (EDU US/BUY/US$135.75/Target: US$150.00) 2QFY20: Solid beat on margin improvement; continues to gain market share. Update Cathay Pacific Airways (293 HK/HOLD/HK$10.82/Target: HK$10.20) Dec 19 PLF improves but pneumonia outbreak casts a pall on recovery. TRADERS’ CORNER Baiyunshan (874 HK): Trading Buy Range Prada (1913 HK): Trading Buy Range

UOB
Julia Pan Mengyao

New Oriental Education & Technology Group - 2QFY20: Solid beat on margin improvement; continues to gain market share

2QFY20 revenue increased 31.5% yoy to US$785m, 2% higher than consensus estimates. Management attributes the accelerating revenue growth to the continued market share gain from smaller sector players. Non-GAAP operating margin expanded 7ppt yoy to 4.5%, beating our estimates by 2.5ppt, thanks to improving operating leverage. Management has guided for 3QFY20 revenue to come in at US$983.0m- 1,006.4m (up 23-26% yoy), in line with consensus estimates. Maintain BUY with target price of US$150.00.

UOB
Benyamin Mikael ...
  • Chong Lee Len
  • Jie Ying Chloe Tan
  • Julia Pan Mengyao
  • K Ajith
  • Keith Wee Teck Keong
  • Peerawat Dentananan

Regional Morning Notes - Tuesday, January 21, 2020

GREATER CHINA Results New Oriental Education & Technology Group (EDU US/BUY/US$135.75/Target: US$150.00): 2QFY20: Solid beat on margin improvement; continues to gain market share. Update Cathay Pacific Airways (293 HK/HOLD/HK$10.82/Target: HK$10.20): Dec 19 PLF improves but pneumonia outbreak casts a pall on recovery. INDONESIA Small/Mid Cap Highlights Surya Citra Media (SCMA IJ/NOT RATED/Rp1,600): Rate-card increase is the key to growth. MALAYSIA Update CIMB Group (CIMB MK/BUY/RM5.12/Target: RM6.50): We get the sense that management has turned more optimistic on the group’s loans growth outlo...

Tian Hou

EDU: Better Operation And Previous Gov’t Policies Led To High Growth In K-12 Attendees And Better FY2Q20 Performance; Maintain BUY And Raise Price Target

EDU will report FY2Q20 results on January 20th before the markets open with an 8am EST conference call. We are positive on EDU into FY2Q20 earnings. During the quarter, the growth of K-12 course offerings was strong. Based on our data and calculation, we believe EDU’s revenue in FY2Q20 is likely to be higher than consensus at $771.8M (29.3% Y/Y growth), driven by the higher growth of K-12 attendees. In addition to better operations on the company front, market consolidation is also contributing to the better performance.

UOB
Tham Mun Hon

CHINA/HK MARKET STRATEGY FOR 2020: 143-page report – Price = US$500:-

UOB Kay Hian published on 11th December a 143-page China/HK strategy report, which highlights our preferred sectors and stocks for 1H 2020. The report includes sections on:- * Market Strategy for 2020: pages 4 – 15; * Stock Recommendations: page 16; * China 2020 Economic Outlook: pages 17 – 26; * Review of Sectors: pages 27 – 112; * Company Updates - Top Stock Picks: pages 114 – 143. For more information about the UOBKayHian dealing services in the Asia-Pacific region and the research on Asian companies (including bespoke packages and free trials), please contact David Osman or Simon Dickson i...

UOB
Charles Wong Kok Min ...
  • Joyce Chan Pui Lai
  • Julia Pan Mengyao

Greater China Daily: Wednesday, July 24, 2019

KEY HIGHLIGHTS CHINA Results New Oriental Education & Technology Group (EDU US/BUY/US$98.29/Target: US$115.00) 4QFY19: In-line results with stable margin expansion, 1QFY20 revenue guidance in line with consensus estimates. TRADERS’ CORNER Xtep International (1368 HK): Trading Buy Range SMIC (981 HK): Trading Buy Range

Soomit Datta

Global TMT: China, ASML, INTEL, LILA/MIC, SBAC, VOD/TEF UK, New Oriental

Global TMT: China, ASML, INTEL, LILA/MIC, SBAC, VOD/TEF UK, New Oriental For further details, please contact Soomit Datta on 8 or email , or Charlie Gaynor 1 or email {MSG CHARLIE GAYNOR }

UOB
Charles Wong Kok Min ...
  • Julia Pan Mengyao

Greater China Daily: Wednesday, January, 23, 2019

KEY HIGHLIGHTS CHINA Results New Oriental Education & Technology Group (EDU US/BUY/US$65.90/Target: US$80.00) 2QFY19: Results beat expectations, margins recovering much faster; upgrade to BUY. TRADERS’ CORNER Zhongsheng Group (881 HK): Trading Sell Range PetroChina (857 HK): Trading Sell Range

ValuEngine Rating and Forecast Report for EDU

ValuEngine Rating and Forecast Report for EDU

ValuEngine Rating and Forecast Report for EDU

ValuEngine Rating and Forecast Report for EDU

ValuEngine Rating and Forecast Report for EDU

ValuEngine Rating and Forecast Report for EDU

ValuEngine Rating and Forecast Report for EDU

ValuEngine Rating and Forecast Report for EDU

ValuEngine Rating and Forecast Report for EDU

ValuEngine Rating and Forecast Report for EDU

UOB
Julia Pan Mengyao

Education - AST companies: Promising top-line growth amid solid margin improvement

We expect EDU’s margin improvement to continue and are more confident about its expansion plans. TAL may deliver better-than-expected results in FY20-21 on capacity expansion. We prefer EDU for its higher margin improvement visibility. Valuations at +1SD do not represent a peak yet, based on historical trends. Maintain OVERWEIGHT.

UOB
Greater China Research Team ...
  • Tham Mun Hon

China Market Strategy: 2020 – Keeping The Vision

As a comprehensive Sino-US trade deal remains elusive, China’s policy reflation will have to continue in 2020, not forgetting its goal of doubling its 2010 GDP. Key policies will focus on supporting FAI, the property market and domestic liquidity conditions. Key beneficiaries are building materials, heavy machinery, developers and consumer names. We are going OVERWEIGHT real estate, funded by an UNDERWEIGHT in financials.

UOB
Charles Wong Kok Min ...
  • Julia Pan Mengyao

Education - AST companies’ earnings beat on better cost control; online strategies vary.

Earnings of both the leading K12 AST players beat expectations. EDU’s revenue grew 24.6% yoy to US$1,072m and TAL’s revenue increased 33.8% yoy to US$936.6m on healthy single-digit growth in retention rates. We expect EDU’s margin recovery to continue and it is more confident of its expansion plans. Valuation at +1SD does not represent the peak yet, based on historical trend. We prefer EDU over TAL on better margin improvement. Maintain OVERWEIGHT.

UOB
Charles Wong Kok Min ...
  • Julia Pan Mengyao

Education - Online K12 AST regulation is just a small issue for leading K12 AST players.

Share prices of education stocks have been fluctuating lately due to the overhang from the final draft of the Private Education Promotion Law. Recently, a member of the Communist Party of China suggested the government should prevent private education companies from listing, using the VIE structure to strengthen government control and supervision of private education. However, we believe that this is a personal view and may not be the final version of the Private Education Promotion Law and the impact on existing listed education companies is limited. Maintain OVERWEIGHT.

UOB
Charles Wong Kok Min ...
  • Julia Pan Mengyao

Education - Online K12 AST regulations have minimal impact on leading K12 AST players.

The long anticipated online K12 regulations have finally been announced, and remove some of the regulatory overhang on the K12 AST segment. We view the regulations as mildly negative as rules on teaching hours and prepaid fee collection are slightly more stringent than offline K12 AST. Similar to management guidance, we think both leading K12 AST players will be able to meet regulatory requirements and expect strong results to be announced next week. Excluding the post-K12 segment in the education sector, we prefer EDU over TAL. Maintain OVERWEIGHT.

Dave Nicoski ...
  • Ross LaDuke

Vermilion Compass: Weekly Equity Strategy

Markets at key inflection point Global markets are at a key inflection point as investors await the first Fed rate cut since 2008 in an effort to keep the economy on track and stave off uncertainties relating to global growth and trade. Over the past couple of weeks the market has been in wait-and-see mode in anticipation of this Wednesday's Fed announcement. Earnings have been the focal point, but the S&P 500 has been virtually unchanged. That is all likely to change following the Fed rate cut announcement and Powell's press conference. Below we highlight several areas that are at key inflec...

Dave Nicoski ...
  • Ross LaDuke

Vermilion Compass: Weekly Equity Strategy

Upgrading cap-weighted Communications to overweight; 10 to 2's Treasury spread breaking out We continue to move increasingly toward the bullish camp and we believe equities are poised for higher prices moving forward. Below we highlight several developments which help lead us to this conclusion. • 10 to 2's Treasury yield spread widening & breaking out. The 10 to 2's spread is quietly breaking out to YTD highs and breaking above a ~2.5-year downtrend. This steepening yield curve is good for Financials/banks and also the economy as recession concerns are subsiding... see chart below. • Comm...

Dave Nicoski ...
  • Ross LaDuke

Vermilion Int'l Compass: Global Equity Strategy

Global indexes approaching major resistance Broad global indexes are bumping up against logical downtrend resistance. As a result, our outlook remains cautious and our baseline expectation for continued downward pressure on global equities remains intact. At the same time, we are seeing signs that the worst of the declines may be behind us as global cyclical Sectors show RS improvements while defensive Sectors display early signs of RS deterioration. • Regional/Country Overview. The U.S., Europe, and Japan all remain in downtrends from a price perspective, though major resistance levels are...

Dave Nicoski ...
  • Ross LaDuke

Vermilion Compass: Weekly Equity Strategy

A Successful Retest... Thus Far As expected, the S&P 500 has made a retest of the February low. As outlined in previous reports, we are watching the S&P's intraday low of 2,532.69 hit on 2/9/18 and the 200-day moving average as critical support levels. One concerning development we have noticed is, since the February correction and subsequent retest of support, the percentage of stocks breaking below their 200-day moving average has increased, and is suggestive of a deterioration in market breadth. • S&P 500 support holding thus far. As referenced above, we view the 200-day moving average as...

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