BOCI noted in a report that New Oriental Education & Technology (EDU.US) logged a 60% YoY hike in sales and a 60.3% YoY rise in non-GAAP operating profit in 3FQ24, but non-GAAP net profit elevated only 9.8% YoY during the quarter. Both sales and operating profit beat market expectations, but net profit slightly missed.
According to the report, New Oriental only provided guidance on non-GAAP operating profit margin, but not net profit margin. The company's 3FQ earnings were ahead of its own guidance. Core business delivered strong growth and margin expansion, although fair value changes resulted in lower-than-expected net profit growth. In the broker's view, EAST BUY (01797.HK) +1.280 (+8.020%) Short selling $17.87M; Ratio 4.712% may continue to affect New Oriental's net profit.
BOCI maintained its earnings forecast on New Oriental for 4FQ24 and slightly lowered its target price from US$105.98 to US$104.55, with a Buy rating.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-04-26 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)
