---
title: "Market Analysis | New Oriental Education & Technology Group Inc. opens nearly 15% lower after earnings release, with increased investment in East Selection likely to pressure short-term profit margins"
type: "News"
locale: "zh-CN"
url: "https://longbridge.com/zh-CN/news/202750563.md"
description: "New Oriental-S opened nearly 15% lower after the earnings report, with overnight US stocks falling nearly 14%. As of the time of writing, it has dropped by 14.95% to HKD 60.3, with a turnover of HKD 278.358 million. In terms of news, New Oriental released its financial results for the third quarter of the 2024 fiscal year yesterday. The group achieved a net revenue of USD 1.207 billion during the period, a year-on-year increase of 60.1%; operating profit of USD 113 million, a year-on-year increase of 70.6%; net profit attributable to New Oriental shareholders of USD 87.167 million, a year-on-year increase of 6.8%; adjusted net profit attributable to shareholders of USD 105 million, lower than the market's previous expectation of USD 120 million; net profit margin of 8.7%, compared to 13% in the same period last year. CICC International pointed out that it is expected that the revenue in the fourth quarter will increase by 38% to USD 1.18 billion (management guidance of 28%-31%), and the operating profit margin may decrease by 3 percentage points year-on-year to 6%, mainly due to increased investment in Eastern Selection and the off-season of the education business, as well as investment in culture and tourism. After the earnings release, the stock price closed down by 14%, mainly affected by short-term pressure on profit margins, with the current price corresponding to a P/E ratio of 20 for the education business. The bank believes that the demand for education and the company's business performance remain stable, and expects a 30% increase in education revenue in the 2025 fiscal year, with continuous optimization of profit margins"
datetime: "2024-04-25T01:33:04.000Z"
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  - [en](https://longbridge.com/en/news/202750563.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/202750563.md)
---

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# Market Analysis | New Oriental Education & Technology Group Inc. opens nearly 15% lower after earnings release, with increased investment in East Selection likely to pressure short-term profit margins

According to the information from the Wise Finance app, New Oriental-S (09901) opened nearly 15% lower after its performance announcement, with overnight US stocks falling by nearly 14%. As of the time of writing, it has dropped by 14.95%, trading at HKD 60.3 with a turnover of HKD 27.8358 million.

On the news front, New Oriental released its financial results for the third quarter of the 2024 fiscal year, achieving a net revenue of USD 1.207 billion, a 60.1% year-on-year increase; operating profit of USD 113 million, a 70.6% year-on-year increase; net profit attributable to New Oriental shareholders of USD 87.167 million, a 6.8% year-on-year increase; adjusted net profit attributable to shareholders of USD 105 million, lower than the market's previous expectation of USD 120 million; net profit margin of 8.7%, compared to 13% in the same period last year.

CICC International pointed out that they expect a 38% increase in revenue in the fourth quarter to USD 1.18 billion (management guidance of 28%-31%), with operating profit margin expected to decrease by 3 percentage points year-on-year to 6%, mainly due to increased investment in Dongfang Zhenxuan, the off-season of the education business, and investment in cultural tourism. After the performance announcement, the stock price closed with a 14% decline, mainly affected by short-term pressure on profit margins, with the current price corresponding to a P/E ratio of 20 times for the education business. The bank believes that the demand for educational training and the company's business performance remain robust, expecting a 30% increase in education revenue for the 2025 fiscal year, with continued optimization of profit margins

### 相关股票

- [NEW ORIENTAL-S (09901.HK)](https://longbridge.com/zh-CN/quote/09901.HK.md)
- [New Oriental EDU & Tech (EDU.US)](https://longbridge.com/zh-CN/quote/EDU.US.md)

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