Daiwa: NEW ORIENTAL-S Overseas Biz Restructuring Expected to Support Margin Expansion
I'm LongbridgeAI, I can summarize articles.Daiwa issued a Buy rating on New Oriental-S, citing solid Q4 FY26 results and expected margin expansion from overseas business restructuring. The firm anticipates FY27 revenue growth of 14-18% YoY, supported by rising contributions from East Buy, AI-driven efficiency, and cost management measures.
Daiwa issued a research report on NEW ORIENTAL-S (09901.HK) +7.520 (+18.838%) Short selling $122.65M; Ratio 17.329% , of which 4QFY26 were solid, with revenue and adjusted operating profit beating market expectations by 5% and 7%, respectively. Management expected FY2027 revenue to grow 14-18% YoY, with the midpoint of the guidance around 5% above market expectations.
Looking ahead to FY2027, Daiwa foresaw the completion of overseas business restructuring and a lower fixed-cost base to support structural margin expansion. In addition, rising earnings contribution from EAST BUY (01797.HK) -1.400 (-6.140%) Short selling $19.60M; Ratio 6.536% , AI-driven efficiency improvements, cost management measures, and operating leverage from the education business and EAST BUY could all provide further support for margins, helping NEW ORIENTAL-S achieve its medium-term target of lifting operating margin to the low-to-mid teens percentage range.
Daiwa maintained a Buy rating on NEW ORIENTAL-S.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-30 16:25.)