The Zhitong Finance App learned that New Oriental-S (09901) was more than 8% lower after the results. As of press release, it had a decrease of 8.33% to HK$39.2, with a turnover of HK$33.21,900.
According to the news, New Oriental announced the results for the first quarter of the 2027 fiscal year on October 28. Financial reports show that as of August 31, 2026, net revenue was US$1,874 million, up 23.1% year on year; net profit due to New Oriental shareholders was US$273 million, up 13.5% year on year; operating profit of US$375 million, up 20.5% year on year; and non-GAAP net profit was US$301 million, up 16.5% year on year. In addition, the company reiterated its net revenue guidance for the 2027 fiscal year of $6.454 billion to $6.68 billion, an increase of 14% to 18% over the previous year.
Guoxin Securities believes that there has been a recent correction in the company's stock price. Analytical market concerns mainly focus on: 1) the decline in operating profit margins in the current quarter due to the structural impact of an increase in the share of selection; 2) the number of applicants for non-disciplinary training in the single quarter declined year-on-year. The bank believes that the former is affected by the amplification of structural changes during the peak season in the education business. Along with the improvement in profit margins of the main business and selection, the profit margin of the Dimension Group is still expected to rise throughout the year; the latter is disturbed by continuous reports across quarters, and the double-digit growth rate of business revenue in a single quarter has initially shown resilience.