HK Stock Market Move | NEW ORIENTAL-S (09901) Rebounds Over 7%; Fiscal Q1 Revenue Growth Exceeds Full-Year Guidance; JP Morgan Says Margin Pressure Is Controllable

NEW ORIENTAL-S (09901) rebounded over 7%, rising 7.18% as of press time to HK$39.4, with turnover of HK$89.1824 million. On the news front, New Oriental recently announced its fiscal first-quarter results for the period ended August, with net revenue of US$1.874 billion, up 23.1% year-on-year, exceeding the company's full-year guidance growth rate of 14%-18%; net profit attributable to shareholders of US$273 million, up 13.5% year-on-year; operating profit of US$375 million, up 20.5% year-on-year; Non-GAAP net profit of US$301 million, up 16.5% year-on-year. JP Morgan believes that New Oriental's first-quarter margin was slightly below expectations and earnings were 3% worse than expected, but revenue grew 23% year-on-year, management reiterated its fiscal 2027 guidance and indicated that growth will accelerate in the next quarter. Margin pressure is also controllable, and management still expects full-year margin expansion despite drags from social security contributions, severance costs and the seasonal mix of EAST BUY. The bank believes New Oriental is one of the few stocks in China's consumer sector with a sustained compounding growth story.