New Street: EDU 4QFY22 Results - Expect Profitability by FY23
What's new: New Oriental’s reported 4QFY22 results came in below consensus estimates. Guidance reflects continued turnaround of the overall business, including a return to profitability in FY23 post-Double Reduction Policy. We lower our PT to USD27 and downgrade shares of EDU from Buy to Neutral. While guidance could be conservative, revenue channels post Double Reduction Policy remains limited as we wait to get more clarity on the e-commerce live streaming segment. Our new PT of USD27 implies a 0.5x FY23E EV/Rev.Analysts:
Jin Yoon
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