External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

New Oriental Education & Techn / Equity Bottom-Up

<ul><li>New Oriental announced 3QFY24 financial results: total net revenue grew by 60.1% YoY to US$1,207mn, 10% ahead of consensus estimate (US$1,098mn); non-GAAP net income was up by 9.8% YoY to US$105mn but below consensus estimate of US$132mn, mainly due to the investment in East Buy and faster-thanexpected capacity expansion which dragged the pace of margin expansion.</li><li>9MFY24 total revenue/non-GAAP net income grew by 48.6/74.9% YoY.</li><li>The company guides 4QFY24 total revenue to grow by 28-31% YoY to US$1,102- 1,127mn, versus the consensus estimate of US$1,096mn. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

New Oriental announced 3QFY24 financial results: total net revenue grew by 60.1% YoY to US$1,207mn, 10% ahead of consensus estimate (US$1,098mn); non-GAAP net income was up by 9.8% YoY to US$105mn but below consensus estimate of US$132mn, mainly due to the investment in East Buy and faster-thanexpected capacity expansion which dragged the pace of margin expansion.9MFY24 total revenue/non-GAAP net income grew by 48.6/74.9% YoY.The company guides 4QFY24 total revenue to grow by 28-31% YoY to US$1,102- 1,127mn, versus the consensus estimate of US$1,096mn. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

New Oriental (EDU US) - Accelerating Capacity Expansion to Address Robust Demand

<ul><li>New Oriental, as a well-established educational &amp; test prep service provider in China with best-in-class teaching resources, is well positioned to benefit from rationalizing competition in China’s after-school tutoring market and robust demand, in our view.</li><li>After the business transformation in FY23, it is embracing a new growth stage, especially with the regulatory environment turning benign.</li><li>We forecast the company to deliver a 49% non-GAAP net income CAGR over FY24-26E. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

New Oriental, as a well-established educational &amp; test prep service provider in China with best-in-class teaching resources, is well positioned to benefit from rationalizing competition in China’s after-school tutoring market and robust demand, in our view.After the business transformation in FY23, it is embracing a new growth stage, especially with the regulatory environment turning benign.We forecast the company to deliver a 49% non-GAAP net income CAGR over FY24-26E. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

New Oriental (EDU US) - Bracing for a New Growth Stage

Analyst

Steve

<ul>
<li>Today, after Hong Kong market close, the Ministry of Education issued a new draft regulation on K12 tutoring. </li>
<li>I have written before on <a href="https://www.smartkarma.com/entities/new-oriental-education-techn-cc88998e-fe0d-4a03-b544-f3e9836b06a2" target="_blank" data-smartkarma-citation="entities:531:1" rel="noopener">New Oriental Education &amp; Techn (EDU US)</a> and China Beststudy that there is now a equilibrium reached between all parties on tutoring in China. </li>
<li>The new draft regulation basically puts it into concrete policy, which should alleviate investor concern on the sector. </li>
</ul>


Today, after Hong Kong market close, the Ministry of Education issued a new draft regulation on K12 tutoring. 
I have written before on New Oriental Education &amp; Techn (EDU US) and China Beststudy that there is now a equilibrium reached between all parties on tutoring in China. 
The new draft regulation basically puts it into concrete policy, which should alleviate investor concern on the sector. 


EDU/TAL:  China Tutoring - Here Comes The Policy Tailwind

<ul>
<li>
<a href="https://www.smartkarma.com/entities/new-oriental-education-techn" target="_blank" data-smartkarma-citation="entities:32210:1" rel="noopener">New Oriental Education &amp; Techn (9901 HK)</a> reported better than expected FY2Q24 results last night, with sales up 36% yoy and net profit up 183% yoy.</li>
<li>The company further guided a 42-45% sales growth in FY3Q24, well above market consensus. </li>
<li>The visibility for the next 2-3 years is actually quite high post-"double reduction" policy.</li>
</ul>



New Oriental Education &amp; Techn (9901 HK) reported better than expected FY2Q24 results last night, with sales up 36% yoy and net profit up 183% yoy.
The company further guided a 42-45% sales growth in FY3Q24, well above market consensus. 
The visibility for the next 2-3 years is actually quite high post-"double reduction" policy.


New Oriental Education (EDU US/9901 HK):  A Better Business Model In The Post "Double Reduction" Era

Research on Tech Companies

Evelyn Zhang

<ul>
<li>Oriental Selection achieves high-speed user growth through bilingual livestreaming, thanks to Douyin's  algorithmic recommendation mechanism before 6/18 ecommerce, after 6/18 the increase in the follower numbers &amp; GMV dropped sharply.</li>
<li>The unit price of the product is below average, due to the focus on produce and books, Agricultural livestreaming has always been a difficult to grow category</li>
<li>10%-15% Commission  is lower than industry average, and subsequent supply chain control and 1st party products have lower margins.</li>
</ul>


Oriental Selection achieves high-speed user growth through bilingual livestreaming, thanks to Douyin's  algorithmic recommendation mechanism before 6/18 ecommerce, after 6/18 the increase in the follower numbers &amp; GMV dropped sharply.
The unit price of the product is below average, due to the focus on produce and books, Agricultural livestreaming has always been a difficult to grow category
10%-15% Commission  is lower than industry average, and subsequent supply chain control and 1st party products have lower margins.


China

New Oriental Education & Technology Group, Inc. offers educational services. The Company offers foreign language training, test preparation courses for admissions and assessment tests in the United States, the PRC and Commonwealth countries, primary and secondary school education, and other services. New Oriental Education & Technology Group also operates software development.

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New Oriental Education & Techn (EDU US)

New Oriental (EDU US) - Accelerating Capacity Expansion to Address Robust Demand

The company guides 4QFY24 total revenue to grow by 28-31% YoY to US$1,102- 1,127mn, versus the consensus estimate of US$1,096mn.

CMB International

New Oriental (EDU US) - Bracing for a New Growth Stage

After the business transformation in FY23, it is embracing a new growth stage, especially with the regulatory environment turning benign.

CMB International

EDU/TAL: China Tutoring - Here Comes The Policy Tailwind

The Ministry of Education issues new draft regulation on K12 tutoring in China, bringing clarity and alleviating investor concerns.

Steve

New Oriental Education (EDU US/9901 HK): A Better Business Model In The Post "Double Reduction" Era

Shares up 8% today in a brutal market - the industry competitive fundamentals have changed for the better. A great opportunity in all stock market...

Steve

A New New Oriental?

After the recent doldrums, the education giant New Orient re-entered the spotlight recently with its new found streaming success. But can it last?

Evelyn Zhang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

New Oriental (EDU US) - Accelerating Capacity Expansion to Address Robust Demand

The company guides 4QFY24 total revenue to grow by 28-31% YoY to US$1,102- 1,127mn, versus the consensus estimate of US$1,096mn.

CMB International

New Oriental (EDU US) - Bracing for a New Growth Stage

After the business transformation in FY23, it is embracing a new growth stage, especially with the regulatory environment turning benign.

CMB International

EDU/TAL: China Tutoring - Here Comes The Policy Tailwind

​The Ministry of Education issues new draft regulation on K12 tutoring in China, bringing clarity and alleviating investor concerns.

Steve

New Oriental Education (EDU US/9901 HK): A Better Business Model In The Post "Double Reduction" Era

Shares up 8% today in a brutal market - the industry competitive fundamentals have changed for the better. A great opportunity in all stock market...

Steve

A New New Oriental?

After the recent doldrums, the education giant New Orient re-entered the spotlight recently with its new found streaming success. But can it last?

Evelyn Zhang

The Ministry of Education issues new draft regulation on K12 tutoring in China, bringing clarity and alleviating investor concerns.