HK Stock Market Move | NEW ORIENTAL-S (09901) Opens Over 8% Lower After Results; First Fiscal Quarter Net Revenue Up 23.1% Year-on-Year; Full-Year Revenue Guidance Unchanged

NEW ORIENTAL-S (09901) opened more than 8% lower after its results. As of press time, it was down 8.33% at HK$39.2, with turnover of HK$33.2179 million. On the news front, New Oriental announced its fiscal 2027 first-quarter results on October 28. The financial report shows that, as of August 31, 2026, net revenue was US$1.874 billion, up 23.1% year-on-year; net profit attributable to shareholders of New Oriental was US$273 million, up 13.5% year-on-year; operating profit was US$375 million, up 20.5% year-on-year; Non-GAAP net profit was US$301 million, up 16.5% year-on-year. In addition, the company reiterated its fiscal 2027 net revenue guidance of US$6.454 billion to US$6.680 billion, representing year-on-year growth of 14% to 18%. Guosen believes that the company's share price has recently pulled back, and analyzes that market concerns mainly focus on: 1) the decline in the operating margin this quarter due to the structural impact of a higher proportion of East Buy; 2) the year-on-year decline in the number of enrollments for non-academic tutoring in the single quarter. The bank believes that the former is due to the peak season for the education business amplifying the impact of structural changes, and that, with margin improvement in both the main business and East Buy, the group's margin for the full year is still expected to rise; the latter was disturbed by cross-quarter consecutive enrollments, and the double-digit growth in single-quarter business revenue has initially demonstrated resilience.