reports
- Jin Yoon
EDU 1QFY25 Results: Margin Pressure in 2QFY25
What’s new: New Oriental’s reported 1QFY25 top-line results that were largely in-line with consensus. Margin could see downward pressure in 2QFY25 partly due to lower seasonality in the education business coupled with continued investments in the tourism segment. We lower our PT from USD70 to USD65 due to lowered outlook. Our revised PT of USD65 implies a 20.0x FY25E P/E. We maintain our NEUTRAL rating. Analysts: Jin Yoon
- Julia Pan Mengyao
- Ming San Soong
New Oriental Education & Technology Group Page 8 (EDU US): 1QFY25: In ...
EDU’s 1QFY25 top-line slightly missed expectations. Revenue grew 30% yoy to US$1,435m, slightly missing consensus estimate and previous guidance of 31-34% yoy. Non-GAAP net profit rose 40% yoy to US$265m, above our and consensus estimates, while net margin inched up 1ppt yoy to 18% for 1QFY25. EDU expects 2QFY25 revenue (excluding East Buy) to rise 25-28% yoy to US$851.4m-871.8m, 1-2ppt below expectations. Maintain BUY with a lower target price of US$85.00 (HK$66.00).
- Colin Lee
- Greater China Research Team
- Johnny Yum Chung Man
- Julia Pan Mengyao
- Kenny Yong Hui Lim
- Ming San Soong
- Shirley Wang Xueyi
- Stella Guo Yuting
Greater China Daily: Thursday, October 24, 2024
KEY HIGHLIGHTS Results Hong Kong Exchanges and Clearing (388 HK/BUY/HK$314.80/Target: HK$364.00) HKEX reported a 6.5% yoy earnings growth in 3Q24 after a sharp increase in headline ADT following the rollout of stimulus packages by China in late-September. Although market velocity has normalised, ADT remains elevated, and NII could be more resilient going forward, suggesting more upside for earnings. The risk-to-reward ratio is more balanced now after the recent correction as HKEX is trading ...
- Arsit Pamaranont
- Chong Lee Len
- Colin Lee
- Jack Goh Tooan Orng
- Jack Lai Yuan Khai
- Johnny Yum Chung Man
- Jonathan Koh
- Julia Pan Mengyao
- Kenny Yong Hui Lim
- Ming San Soong
- Shirley Wang Xueyi
- Stella Guo Yuting
- Stevanus Juanda
- Tanaporn Visaruthaphong
- Thanawat Thangchadakorn
Regional Morning Meeting Notes: Thursday, October 24, 2024
GREATER CHINA Results Hong Kong Exchanges and Clearing (388 HK/BUY/HK$314.80/Target: HK$364.00) 3Q24: Risk-and-reward is more balanced. Upgrade to BUY. Han’s Laser (002008 CH/HOLD/Rmb24.42/Target: Rmb22.70) 3Q24: Net profit misses, but visibility of recovery improving. Downgrade to HOLD. New Oriental Education & Technology Group (EDU US/BUY/US$62.15/Target: US$85.00) 1QFY25: In line; moderated growth outlook in 2QFY25 on low seasonality. Update Xtep International Holdings (...
KKP KIATNAKIN BANK
A0M4P7 HAN'S LASER TECHNOLOGY INDUSTRY GROUP CO. LTD. CLASS A
BBL BANGKOK BANK PUBLIC COMPANY LIMITED
00388 HONG KONG EXCHANGES & CLEARING LTD.
KTB KRUNG THAI BANK PUBLIC CO. LTD.
TISCO TISCO FINANCIAL GROUP
IVL INDORAMA VENTURES PUBLIC CO. LTD.
UNVR PT UNILEVER INDONESIA TBK
KBANK KASIKORNBANK PUBLIC CO. LTD.
5347 TENAGA NASIONAL BHD
MLT MAPLETREE LOGISTICS TRUST
KPG KERJAYA PROSPEK GROUP BHD
TXG 10X GENOMICS INC CLASS A
1368 XTEP INTERNATIONAL HOLDINGS
WHA TB WHA CORP PCL
SCB SCB X PUBLIC COMPANY LIMITED
AL2SI 2CRSI SA
Z29 029 GROUP SE
- Jin Yoon
EDU 4QFY24 Results: Margin Expansion in Education Segment Partly Offse...
What’s new: New Oriental’s reported 4QFY24 top-line results that were largely in-line with consensus and our expectations. Margins were below expectations partly due to continued expansion of learning centers and one-time impact related to East Buy. We lower our PT from USD80 to USD70 due to lowered outlook. Our revised PT of USD70 implies a 20.0x FY25E P/E. We maintain our NEUTRAL rating. Analysts: Jin Yoon
- Julia Pan Mengyao
- Ming San Soong
New Oriental Education & Technology Group (EDU US): 4QFY24: Earnings m...
New Oriental’s 4QFY24 earnings missed expectations. Revenue grew 32% yoy to US$1,136.7m, in line with the street’s estimate. Non-GAAP net profit declined 41% yoy to US$37m, below our and consensus expectations, while net margin dipped 4ppt yoy to 3% for 4QFY24. EDU forecasts 1QFY25 revenue (excluding East Buy) rising 31-34% yoy to US$1,254.7m-1,283.5m, 2% below consensus estimate. Maintain BUY with a lower target price of US$90.00 (HK$70.00).
- Greater China Research Team
- Julia Pan Mengyao
- Kenny Yong Hui Lim
- Ming San Soong
- Tham Mun Hon
- Ziv Ang Sze Champ
Greater China Daily: Thursday, August 1, 2024
KEY HIGHLIGHTS Economics PMI July manufacturing PMI fell for the third consecutive month to 49.4% (-0.1ppt mom), weighed by weak output and new orders. Non-manufacturing PMI fell to 50.2% (-0.3ppt mom), marking the weakest reading in the past eight months. This was mainly driven by a 1.1ppt decline in construction PMI. Overall, the report points to further slowing of economic activities, and the improved number of activities for large-sized enterprises has yet to trickle down to the mid- and...
- Jack Goh Tooan Orng
- Jack Lai Yuan Khai
- Jonathan Koh
- Julia Pan Mengyao
- Kasemsun Koonnara
- Keith Wee Teck Keong
- Kenny Yong Hui Lim
- Ming San Soong
- Paula Ruth
- Posmarito Pakpahan
- Singapore Research Team
- Tanaporn Visaruthaphong
- Tham Mun Hon
- Ziv Ang Sze Champ
Regional Morning Meeting Notes: Thursday, August 01, 2024
GREATER CHINA Economics PMI Stuck in a soft patch. Results New Oriental Education & Technology Group (EDU US/BUY/US$69.25/Target: US$90.00) 4QFY24: Earnings miss; impact from East Buy to carve out after 1QFY25. Xinyi Solar Holdings (968 HK/HOLD/HK$3.71/Target: HK$4.00) 1H24: In line; murky demand outlook ahead. Downgrade to HOLD. Update Prudential (2378 HK/BUY/HK$69.90/Target: HK$12...
OU8 CENTURION
PRU PRUDENTIAL PLC
1023 CIMB GROUP HOLDINGS BHD
544 CSE GLOBAL LTD.
2488 ALLIANCE BANK MALAYSIA BHD.
V03 VENTURE CORPORATION LIMITED
1295 PUBLIC BANK BHD
U96 SEMBCORP INDUSTRIES LTD.
N2IU MAPLETREE COMMERCIAL TRUST
0968 XINYI SOLAR HOLDINGS LTD.
Z74 SINGAPORE TELECOMMUNICATIONS LIMITED
O39 OVERSEA-CHINESE BANKING CORPORATION LIMITED
ERAA ERAJAYA SWASEMBADA
CPN CENTRAL PATTANA PUBLIC CO. LTD.
Q5T FAR EAST HOSPITALITY TRUST
G13 GENTING SINGAPORE LIMITED
RHBBANK RHB BANK BHD
HLFG HONG LEONG FINANCIAL GROUP
SCGB SUNWAY CONSTRUCTION GROUP BH
SPOST SINGAPORE POST LTD
MINT MAPLETREE INDUSTRIAL TRUST
AMM AMMB HOLDINGS BHD
HLBK HONG LEONG BANK BERHAD
CPN-R CENTRAL PATTANA PCL NVDR
TXG 10X GENOMICS INC CLASS A
ABANK AFFIN BANK BHD
FRKN FRENCKEN GROUP LTD
MPM MARCO POLO MARINE LTD
LREIT SP LENDLEASE GLOBAL COMMERCIAL REIT
KORE KEPPEL PACIFIC OAK US REIT
ONEE THE ONE ENTERPRISE PCL
123F 123FAHRSCHULE SE
BCOW 1895 BANCORP OF WISCONSIN INC
BIMB BANK ISLAM MALAYSIA BHD
Z29 PERTAMINA GEOTHERMAL ENERGY
PGEO 029 GROUP SE
CVL PT. PERTAMINA GEOTHERMAL ENERGY
CIVMEC LIMITED
- Julia Pan Mengyao
- Ming San Soong
China Education: Out of the woods after three years.
This year marks the third year after the “Double Reduction” policy was introduced. During these three years, EDU and TAL adopted a multi-faceted approach to foster healthy long-term growth. The key growth catalysts include: a) normalised regulatory tone, b) AIGC integration and smart devices, and c) diversified revenue stream with overseas exposure. We opine that the near-term drag on margins is mainly due to investment to foster sustainable growth. We maintain MARKET WEIGHT on the sector.
- Julia Pan Mengyao
- Ming San Soong
New Oriental Education & Technology Group (EDU US): Diverse revenue st...
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).
- Greater China Research Team
- Julia Pan Mengyao
- Kenny Yong Hui Lim
- Ming San Soong
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. To...
- Desmond Chong Chee Wai
- Jack Goh Tooan Orng
- Julia Pan Mengyao
- Kenny Yong Hui Lim
- Kong Ho Meng
- Ming San Soong
- Nurul Nazira Binti Abdullah
- Posmarito Pakpahan
- Roy Chen Chengzhi
- Wei Xiang Ku
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: Soli...
- Jin Yoon
- Jin Yoon
EDU 2QFY24 Results: Business Remains Resilient
What's new: New Oriental’s reported 2QFY24 results beat consensus and our expectations. Guidance could be conservative as overall business remains resilient. Margins could trend better amid better utilization rate, lower fixed cost, and continued cost control measures. We increase our PT from USD65 to USD80 (2.4x FY24E EV/Rev) due to better FY24 outlook. We maintain our Neutral rating. Analysts: Jin Yoon
- Jin Yoon
EDU 1QFY24 Results: Raising FY24 Outlook
What's new: New Oriental’s reported 1QFY24 results beat consensus and our expectations. Guidance reflects a deceleration in top-line growth partly due to tougher comps and low seasonality in some of the key segments such as high-school tutoring. Margins could trend better amid continued cost control measures. We increase our PT from USD50 to USD65 (2.0x FY24E EV/Rev) due to better FY24 outlook. We maintain our Neutral rating. Analysts: Jin Yoon
- Jin Yoon
EDU 4QFY23 Results: Demand Remains Resilient
What's new: New Oriental’s reported 4QFY23 top-line results beat consensus and our expectations. Guidance reflects a strong momentum heading into summer months, while margins could trend better amid continued cost control measures. We increase our PT from USD38 to USD50 (1.4x FY24E EV/Rev) due to better outlook. We maintain our Neutral rating. Analysts: Jin Yoon
- Jin Yoon
EDU 3QFY23 Results: Improving Business Outlook
What's new: New Oriental’s reported 3QFY23 results were above consensus and our expectations. Guidance reflects a strong recovery across business segments, while margins could continue to trend better amid continued cost control measures. We maintain our PT at USD38 and maintain our Neutral rating. Analysts: Jin Yoon
- Jin Yoon
New Street: EDU 1QFY23 Results - Guidance Above Expectations
What's new: New Oriental’s reported 1QFY23 results came in above consensus estimates and our expectations. Guidance reflects continued recovery in the business as restructuring post Double Reduction Policy has been largely completed. We maintain our PT at USD27 and maintain our Neutral rating. Analysts: Jin Yoon
- Jin Yoon
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...
NEW ORIENTAL EDUCAT sees a downgrade to Negative on account of less fu...
The independent financial analyst theScreener just lowered the general evaluation of NEW ORIENTAL EDUCAT (US), active in the Business Support Services industry. As regards its fundamental valuation, the title now shows 0 out of 4 stars while market behaviour can be considered risky. theScreener believes that the title remains under pressure due to the loss of a star(s) and downgrades its general evaluation to Negative. As of the analysis date December 3, 2021, the closing price was USD 1.87 and ...
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