HK Stock Market Move | NEW ORIENTAL-S (09901) rose over 6% Management said overseas business has positive factors Core K12 sector development is good Normal

New Oriental-S (09901) is now up by more than 6%, as of the time of writing, it is up by 5.18% at 41.65 Hong Kong dollars, with a turnover of 1.46 billion Hong Kong dollars. UBS published a research report stating that overseas exam preparation and consulting business are the main reasons for New Oriental's recent weakness. The company management emphasized some positive factors in its overseas business from the bottom up: first, its strong growth in projects targeting young students, with an annual growth rate of 30 to 40%; second, transforming "1X1" courses into high-quality group courses. The overseas business is transforming to adapt to the new normal of the study abroad market. Looking beyond the fiscal year 2025, the overseas business still has a growth trend of 5 to 10%. UBS quoted New Oriental management as saying that the core K12 sector is developing well and normally, and the bank also expects the profit margin of the K12 business to stabilize or slightly increase, achieving healthy growth of 25% in the 2026 fiscal year. In addition, New Oriental's share buyback program will end on May 31, and the bank believes the company may launch a new shareholder reward program.