HK Stock Market Move | New Oriental Education & Technology Group Inc. (09901) rebounds more than 7% as Morgan Stanley predicts a 33% increase in its core education revenue for the first quarter of the 2025 fiscal year.

New Oriental-S (09901) rebounded more than 7%, after falling more than 7% yesterday. As of the time of writing, it rose 7.13%, trading at 49.6 Hong Kong dollars, with a turnover of 3.46 billion Hong Kong dollars. On the news front, Morgan Stanley issued a research report stating that despite the drag from the higher average selling price (ASP) of its overseas exam preparation business, the bank expects New Oriental to achieve its revenue and profit targets for the first quarter of the 2025 fiscal year. Morgan Stanley stated that they are not too concerned about industry competition and believe that the current regulatory environment is relatively stable. The report pointed out that benefiting from the resilient growth of the K12 business, Morgan Stanley predicts that New Oriental's core education revenue will increase by 33% year-on-year in the first quarter of the 2025 fiscal year. In addition, New Oriental may incur a cost of 140 million RMB for the first time in the 2025 fiscal year, with 50% of the profits from "Yuhui Tongxing" being distributed to Dong Yuhui, and a cost of 76 million RMB related to the acquisition of "Yuhui Tongxing", which is still under consideration and may be booked after the first quarter of the 2025 fiscal year.