BOCOM INTL: Maintains a "buy" rating on NEW ORIENTAL-S (09901) with a target price lowered to HK$75.

BOCOM INTL released a research report stating that it has lowered the target price of NEW ORIENTAL-S (09901) to HK$75 and maintains a "buy" rating. This adjustment is based on the disclosure of business data for the first quarter of the 2025 fiscal year for New Oriental, resulting in revised profit forecasts and valuations. The firm believes that the company's short-term overall performance growth will still be affected by the uncertainty of the EAST BUY (01797) business. However, the education and cultural tourism businesses continue to perform steadily. Although there is uncertainty in the profit contribution from EAST BUY, it is relatively small in terms of the overall profit/loss contribution to New Oriental. The firm stated that it maintains a forecast of a 31% revenue growth for the 2025 fiscal year for New Oriental, with an adjusted operating profit margin improving by 1 percentage point to 13%, reaching $580 million. It is expected that the revenue for the second quarter will be $870 million, a 28% increase year-on-year, while management guidance is in the range of 25%-28%.