New Street Research - New Oriental Education Technology Group Inc. Sponsored ADR (N1U) EDU 3QFY24 Results: Margins could be Under Pressure due to East Buy | ResearchPool

Almost there...

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

First Name*

Last Name*

Country*

Email*

Password* ( 6 or more alphabetic and numerical characters )

Get financial insights straight to your inbox

YES

I have read and accept ResearchPool Terms & Conditions, and Privacy Policy, including our Cookie Use Policy

Already on ResearchPool? Login Now

Report

New Street Research

Jin Yoon

EDU 3QFY24 Results: Margins could be Under Pressure due to East Buy

What’s new: New Oriental’s reported 3QFY24 top-line results beat consensus and our expectations. Margins were below expectations partly due to investments related to East Buy. We maintain our PT at USD80.

Analysts:
Jin Yoon

25/04/2024 1 EN

Underlying

New Oriental Education & Technology Group Inc. Sponsored ADR

New Oriental Education & Technology Group Inc. Sponsored ADR

See profile

US6475811070 Germany

Provider

New Street Research

New Street Research

Provided by our team of experienced analysts, our work is idea driven, based on independence of thought, sector expertise, and firmly focussed on fundamentals and valuation.

New Street Research is an independent, partner-owned, research firm specialising in equity and debt research. Our equity research embraces the following sectors:

Pan European Telecom Services and Cable
US Telecoms, Cable, Satellite and Towers
Global Emerging Market Telecoms
Japan Telecoms
Asian Internet
Pan European Healthcare
Global healthcare thematic research

We provide debt research on:

Pan European Telecom Services and Cable

See profile

Analysts

Jin Yoon

Other Reports on these Companies

UOB

New Oriental Education & Technology Group (EDU US): Diverse revenue streams; margin improvement in sight.

We note that demand for after-school education remains resilient despite a weaker macro outlook as peer competition in China remains intense. To defend against potential uncertainties, EDU is cultivating a competitive moat by diversifying its revenue streams and investing in East Buy. Management guided 4QFY24 revenue growth of 28-31% yoy to US$1,101.5m-1,127.3m while overall net margin should expand 2-3ppt yoy in FY24. Upgrade to BUY with a higher target price of US$105.00 (HK$82.00).

May 31, 2024 May 31, 2024 1 EN

UOB

Greater China Daily: Friday, May 31, 2024

KEY HIGHLIGHTS Sector Banking The impact of the recent property rescue package is mixed. Asset quality concern is expected to ease but the lower mortgage rate could continue to weigh on banks’ NIM. Thus, further policy supports from the PBOC, such as RRR and deposit rate cuts, are much needed. Meanwhile, the potential removal of dividend tax for Southbound investors could boost the sector’s valuation further given the attractive A/H spreads and high dividend yields. Upgrade to MARKET WEIGHT. Top pick: CMB. Update New Oriental Education & Technology Group (EDU US/BUY/US$81.38/Target: US$105...

May 31, 2024 May 31, 2024 1 EN

UOB

Regional Morning Notes - Friday, May 31, 2024

GREATER CHINA Sector Banking: Implications of property rescue package and dividend tax exemption. Update New Oriental Education & Technology Group (EDU US/BUY/US$81.38/Target: US$105.00): Diverse revenue streams; margin improvement in sight. INDONESIA Update Mitra Keluarga Karyasehat (MIKA IJ/HOLD/Rp3,100/Target: Rp3,300): Earnings upgrade, but downgrade to HOLD on expensive valuation, with a higher target price. MALAYSIA Results Genting Malaysia (GENM MK/BUY/RM2.80/Target: RM3.50): 1Q24: Solid beginning for 2024 with stellar set of results above expectations. Maintain BUY and target price o...

May 31, 2024 May 31, 2024 1 EN

Read more reports

Other Reports from New Street Research

Jonathan Chaplin

Jonathan Chaplin

US Cellular: is the market missing something?

T-Mobile and US Cellular ("USM") structured a clever deal that is good for both companies. The clever element is the tower lease extension, which costs T-Mobile nothing, but secures $1BN in value to USM shareholders and opens the door to a much more valuable transaction. When we add this to the value of the spectrum and other assets that USM keeps, USM looks undervalued. Moreover, we expect additional transactions to crystalize this value in relatively short order.

EUR 9211.00

May 31, 2024 May 31, 2024 1 EN

Chris Hoare

Chris Hoare

VEON (Buy, TP: $40, +57%) YTD update implies better trends in April

VEON disclosed its YTD trading update ahead of its AGM. Numbers imply a stronger April performance as Ukraine begins to recover and key markets like Pakistan and Kazakhstan maintained good momentum. Our brief thoughts below.

EUR 9211.00

May 31, 2024 May 31, 2024 1 EN

Soomit Datta

Soomit Datta

PYPL US (Buy, TP: $80, +28%) PayPal Initiation - BUY: Life in the Fast Lane

Almost nine months in, new CEO Alex Chriss is looking to pivot PayPal to value (from price) and better leverage its unique two-sided (consumer/merchant) advantages it has over competitors such as Adyen, Stripe and even Apple Pay. The first evidence of this is Braintree’s more rational approach to pricing contract renewals – good for all in the market. Next we Deep dive into Fastlane, a new guest checkout; we look at how this can lift unbranded volume (first) and pricing (to follow). Other areas of better monetisation can follow over the next 6-12 months: Venmo (deposit capture), broader debit ...

EUR 9211.00

May 31, 2024 May 31, 2024 1 EN

Read more reports

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?