New Oriental Education: First Look at 4QF26: Third beat-and-raise; still only 11x

研报英文原文证据摘录

New Oriental Education: First Look at 4QF26: Third beat-and-raise; still only 11x

J P M O R G A N Asia Pacific Equity Research

29 July 2026

New Oriental Education Overweight

EDU, EDU US

First Look at 4QF26: Third beat-and-raise; still only 11x Price (28 Jul 26):$50.79

Price Target (Dec-26):$75.00

In a China consumer earnings season short on beats, EDU delivered the rarest Co-Head of Asia Pacific Consumer

combo: beat, raise, and shareholder return. This was EDU’s third straight beat-and- Research and Head of Asia Gaming/

raise quarter, with revenue up +23% y/y, beating JPMe/Street of +18%, and well Leisure Research

above its own +15-18% guide. Margins held up better than feared: up 60bps y/y to DS Kim AC

7.2% OPM (non-GAAP), despite the restructuring costs management had already (852) 2800-8597

flagged last quarter. The result: non-GAAP OP jumped +35% y/y to US$110m, its ds.kim@jpmorgan.com

J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

highest 4Q profit ever. The bigger point, in our view, is the confidence embedded Morgan Broking (Hong Kong) Limited

in the outlook: its FY27 revenue guidance came in surprisingly strong at up Selina Li

to $6.7B or +18%, well above consensus/JPMe of +12%/+14%, while the FY27 (852) 2800-8530

shareholder return program of $500m also met expectations comfortably. selina.c.li@jpmorgan.com

Morgan Broking (Hong Kong) Limited

Granted, EastBuy appears to have driven the majority of the upside. But we would

Lindsey Qian

not dismiss this as “just EastBuy”: core education was also moderately better than

(86 21) 6106 6269

expected (e.g., K9 revenue jumped +25%, overseas study grew +4% in US$), and lindsey.qian@jpmorgan.com

in this China macro, any company delivering this level of earnings deserves J.P. Morgan Securities (China) Company Limited