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<Research>BOCOMI: NEW ORIENTAL-S Stock Price Affected by Rev. Expectations; Rising Uncertainty in Overseas Exam Preparation & Consulting Biz
Recommend 3 Positive 8 Negative 3 |
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NEW ORIENTAL-S (09901.HK) was in selloff this morning (22nd). It opened sinking nearly 15% and once collapsed almost 32% to an intraday low of $31.8. It last traded at $34.35, down over 26%, on a turnover of $616 million. NEW ORIENTAL-S' results for 2QFY25 ended November 2024 recorded a YoY increase of 19% in revenue to US$1.04 billion, slightly above the broker's and the market's expectations, according to a report from BOCOMI. Excluding EAST BUY (01797.HK), the company's education and cultural tourism revenue surged 31%, mainly driven by strong growth in K9-related education businesses. BOCOMI expected NEW ORIENTAL-S' 3QFY25 education services and cultural tourism (excluding EAST BUY) revenue to soar 24% YoY to US$1.08 billion, compared to 18-21% growth in the management guidance, down from the broker's previous forecast of 34%, primarily due to escalated uncertainty in its overseas exam preparation and consulting business adjusting revenue growth to 11%, while other university adult/ K12 businesses remaining relatively stable. NEW ORIENTAL-S' stock price cratered 22% after releasing its results. The broker lowered its target price for the company's H-shares to $60 and kept a Buy rating unchanged in light of the company's strong cash flow and attractive valuation. AAStocks Financial News |
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