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

Equity Analyst

Steve Zhou, CFA

<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

China Beststudy Education Group / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-beststudy-education-group" target="_blank" data-smartkarma-citation="entities:40632:1" rel="noopener">China Beststudy Education Group (3978 HK)</a> is a Chinese K12 tutoring company with the majority of the learning centers in the Greater Bay Area. </li>
<li>The company is trading at 5x forward PE (2024), and I expect earnings to grow &gt;100% in 2024 off of a low base, and &gt;30% in 2025.  </li>
<li>I believe a forward PE of 10x is reasonable and conservative, which is at a discount to the market leader EDU's current 20x.</li>
</ul>



China Beststudy Education Group (3978 HK) is a Chinese K12 tutoring company with the majority of the learning centers in the Greater Bay Area. 
The company is trading at 5x forward PE (2024), and I expect earnings to grow &gt;100% in 2024 off of a low base, and &gt;30% in 2025.  
I believe a forward PE of 10x is reasonable and conservative, which is at a discount to the market leader EDU's current 20x.


China Beststudy Education (3978 HK):  A Darkhorse Stock In The China Tutoring Sector

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Event-Driven

<ul>
<li>PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US listed China companies.</li>
<li>The Hong Kong visit was on the back of the 26th Aug 2022 announcement by PCAOB and CSRC that they had entered into an agreement with US authorities for access.</li>
<li>In this note, we'll talk about the latest developments, possible outcomes and implications.</li>
</ul>


PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US listed China companies.
The Hong Kong visit was on the back of the 26th Aug 2022 announcement by PCAOB and CSRC that they had entered into an agreement with US authorities for access.
In this note, we'll talk about the latest developments, possible outcomes and implications.


China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

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.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

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 Zhou, CFA

China Beststudy Education (3978 HK): A Darkhorse Stock In The China Tutoring Sector

High conviction pick in a very attractive sector with policy tailwind now. Volume starting to pick up indicating more investor interest. Still...

Steve Zhou, CFA

China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US...

Sumeet Singh

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 Zhou, CFA

China Beststudy Education (3978 HK): A Darkhorse Stock In The China Tutoring Sector

High conviction pick in a very attractive sector with policy tailwind now. Volume starting to pick up indicating more investor interest. Still...

Steve Zhou, CFA

China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US...

Sumeet Singh

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