<Research>CMSI Increases Price Targets for New Oriental & TAL Education; Profit Margins Exceed Expectations
Profit Margins Exceed Expectations: NEW ORIENTAL-S and TAL Education reported better-than-expected profit margins for the November quarter, supported by revenue growth, operational efficiency, and cost control.
Industry Growth Drivers: The steady growth trend in the education sector is attributed to strong demand, a stable policy environment, and advancements in AI technology, as noted in a CMSI report.
Target Price Increases: BofAS has raised the target price for NEW ORIENTAL-S from $70 to $76 and for TAL Education from $16.7 to $17.3 following their positive quarterly results.
Investment Ratings: CMSI has maintained an Overweight rating on both NEW ORIENTAL-S and TAL Education, indicating confidence in their future performance.
Trade with 70% Backtested Accuracy
Analyst Views on 09901
About the author
Michael Yu Aims to Launch EAST BUY E-commerce Training School in Beijing This Year
EAST BUY's New Initiative: EAST BUY plans to establish an e-commerce training school in Beijing to train operation talents and hosts from various regions in China.
Market Performance: Michael Yu, founder of NEW ORIENTAL-S, and chairman of EAST BUY, reported significant short selling figures for both companies, indicating market interest and potential volatility.
<Research>CMSI Increases Price Targets for New Oriental & TAL Education; Profit Margins Exceed Expectations
Profit Margins Exceed Expectations: NEW ORIENTAL-S and TAL Education reported better-than-expected profit margins for the November quarter, supported by revenue growth, operational efficiency, and cost control.
Industry Growth Drivers: The steady growth trend in the education sector is attributed to strong demand, a stable policy environment, and advancements in AI technology, as noted in a CMSI report.
Target Price Increases: BofAS has raised the target price for NEW ORIENTAL-S from $70 to $76 and for TAL Education from $16.7 to $17.3 following their positive quarterly results.
Investment Ratings: CMSI has maintained an Overweight rating on both NEW ORIENTAL-S and TAL Education, indicating confidence in their future performance.
BofAS Raises Target Price for NEW ORIENTAL-S (09901.HK) to $55.6 Following Strong Quarterly Results
Revenue and Profit Performance: NEW ORIENTAL-S reported a 15% revenue growth for the second fiscal quarter, surpassing expectations and guidance, leading to an increase in full fiscal year revenue guidance to US$5.3-5.5 billion.
Future Projections: The company has set a revenue growth guidance of 11-14% for the third fiscal quarter, with analysts raising their non-GAAP EPS forecasts for FY2026/2027 by 6% and 7%, respectively.
Market Reaction: Following the positive results and guidance upgrades, BofA Securities raised the target price for NEW ORIENTAL-S' US stock and H-shares, while maintaining a 'Buy' rating, indicating improved investor confidence.
Key Business Drivers: The growth is primarily driven by the K12 business and a reduction in the decline of the overseas test preparation sector, contributing to the overall positive outlook for the company.
NEW ORIENTAL-S Rises Over 2% This Morning Following 42.3% Increase in 2Q Net Profit to US$45.5M
Stock Performance: NEW ORIENTAL-S (09901.HK) opened 1.03% higher, peaked at $45.68, and last traded at $45.62, reflecting a 2.06% increase with significant trading volume of 2.5017 million shares.
Financial Results: The company reported 2Q results for the period ending November 2025, with net revenues of US$1.191 billion, a 14.7% year-over-year increase, driven by new educational initiatives.
Profit Growth: Net profit reached US$45.5 million, up 42.3%, while non-GAAP income from operations surged 206.9% to US$89.1 million, and non-GAAP net income increased by 68.6% to US$72.9 million.
Analyst Upgrade: BofAS raised the target price for NEW ORIENTAL-S to $55.6 following the company's quarterly results, which exceeded expectations.
HSI Starts New Year Up 86 Points; BIREN TECH Launches at 82% Premium Over Listing Price
Hong Kong Stock Market Opening: Hong Kong stocks opened positively on the first trading day of the year, with the HSI up 0.3% at 25,717, the HSCEI up 0.4% at 8,949, and the HSTECH up 0.6% at 5,547.
BIREN TECH Debut: Domestic GPU maker BIREN TECH made a strong debut, opening at $35.7, which is 82% above its IPO price of $19.6, reflecting a significant increase of nearly 102%.
Other Tech Stocks Performance: Major tech companies like TENCENT and BABA-W saw slight increases of around 1.6% and 1.9%, respectively, while KUAISHOU-W experienced a minor decline of 0.2%.
Short Selling Activity: Notable short selling activity was reported, with HUA HONG SEMI and SMIC showing significant short selling ratios of 9.017% and 4.617%, respectively, indicating investor caution in the market.
New Oriental to Report Q2 FY2026 Financial Results on January 28, 2026
- Earnings Report Schedule: New Oriental Education and Technology Group will release its financial results for the second quarter ended November 30, 2025, before the U.S. market opens on January 28, 2026, providing investors with insights into its latest financial health and operational performance.
- Conference Call Details: Management will host an earnings conference call at 8 AM U.S. Eastern Time on January 28, 2026, where they will elaborate on the financial results and address investor questions, enhancing transparency and communication efficiency.
- Webcast Participation Option: Investors can join the meeting via a live webcast, ensuring broader participation, while a replay will be available until January 28, 2027, allowing those unable to attend live to access the information.
- Diverse Service Offerings: New Oriental offers a wide range of educational services, including test preparation courses and overseas study consulting, showcasing its extensive influence and market positioning in China's education sector.
Michael Yu Aims to Launch EAST BUY E-commerce Training School in Beijing This Year
EAST BUY's New Initiative: EAST BUY plans to establish an e-commerce training school in Beijing to train operation talents and hosts from various regions in China.
Market Performance: Michael Yu, founder of NEW ORIENTAL-S, and chairman of EAST BUY, reported significant short selling figures for both companies, indicating market interest and potential volatility.
<Research>CMSI Increases Price Targets for New Oriental & TAL Education; Profit Margins Exceed Expectations
Profit Margins Exceed Expectations: NEW ORIENTAL-S and TAL Education reported better-than-expected profit margins for the November quarter, supported by revenue growth, operational efficiency, and cost control.
Industry Growth Drivers: The steady growth trend in the education sector is attributed to strong demand, a stable policy environment, and advancements in AI technology, as noted in a CMSI report.
Target Price Increases: BofAS has raised the target price for NEW ORIENTAL-S from $70 to $76 and for TAL Education from $16.7 to $17.3 following their positive quarterly results.
Investment Ratings: CMSI has maintained an Overweight rating on both NEW ORIENTAL-S and TAL Education, indicating confidence in their future performance.
BofAS Raises Target Price for NEW ORIENTAL-S (09901.HK) to $55.6 Following Strong Quarterly Results
Revenue and Profit Performance: NEW ORIENTAL-S reported a 15% revenue growth for the second fiscal quarter, surpassing expectations and guidance, leading to an increase in full fiscal year revenue guidance to US$5.3-5.5 billion.
Future Projections: The company has set a revenue growth guidance of 11-14% for the third fiscal quarter, with analysts raising their non-GAAP EPS forecasts for FY2026/2027 by 6% and 7%, respectively.
Market Reaction: Following the positive results and guidance upgrades, BofA Securities raised the target price for NEW ORIENTAL-S' US stock and H-shares, while maintaining a 'Buy' rating, indicating improved investor confidence.
Key Business Drivers: The growth is primarily driven by the K12 business and a reduction in the decline of the overseas test preparation sector, contributing to the overall positive outlook for the company.
NEW ORIENTAL-S Rises Over 2% This Morning Following 42.3% Increase in 2Q Net Profit to US$45.5M
Stock Performance: NEW ORIENTAL-S (09901.HK) opened 1.03% higher, peaked at $45.68, and last traded at $45.62, reflecting a 2.06% increase with significant trading volume of 2.5017 million shares.
Financial Results: The company reported 2Q results for the period ending November 2025, with net revenues of US$1.191 billion, a 14.7% year-over-year increase, driven by new educational initiatives.
Profit Growth: Net profit reached US$45.5 million, up 42.3%, while non-GAAP income from operations surged 206.9% to US$89.1 million, and non-GAAP net income increased by 68.6% to US$72.9 million.
Analyst Upgrade: BofAS raised the target price for NEW ORIENTAL-S to $55.6 following the company's quarterly results, which exceeded expectations.
HSI Starts New Year Up 86 Points; BIREN TECH Launches at 82% Premium Over Listing Price
Hong Kong Stock Market Opening: Hong Kong stocks opened positively on the first trading day of the year, with the HSI up 0.3% at 25,717, the HSCEI up 0.4% at 8,949, and the HSTECH up 0.6% at 5,547.
BIREN TECH Debut: Domestic GPU maker BIREN TECH made a strong debut, opening at $35.7, which is 82% above its IPO price of $19.6, reflecting a significant increase of nearly 102%.
Other Tech Stocks Performance: Major tech companies like TENCENT and BABA-W saw slight increases of around 1.6% and 1.9%, respectively, while KUAISHOU-W experienced a minor decline of 0.2%.
Short Selling Activity: Notable short selling activity was reported, with HUA HONG SEMI and SMIC showing significant short selling ratios of 9.017% and 4.617%, respectively, indicating investor caution in the market.
New Oriental to Report Q2 FY2026 Financial Results on January 28, 2026
- Earnings Report Schedule: New Oriental Education and Technology Group will release its financial results for the second quarter ended November 30, 2025, before the U.S. market opens on January 28, 2026, providing investors with insights into its latest financial health and operational performance.
- Conference Call Details: Management will host an earnings conference call at 8 AM U.S. Eastern Time on January 28, 2026, where they will elaborate on the financial results and address investor questions, enhancing transparency and communication efficiency.
- Webcast Participation Option: Investors can join the meeting via a live webcast, ensuring broader participation, while a replay will be available until January 28, 2027, allowing those unable to attend live to access the information.
- Diverse Service Offerings: New Oriental offers a wide range of educational services, including test preparation courses and overseas study consulting, showcasing its extensive influence and market positioning in China's education sector.
