09901 Overview

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.

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.

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.

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.

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.