Analyst

Steve

Equity Bottom-Up

China Beststudy Education / Equity Bottom-Up

<ul>
<li>China after-school tutoring remains one of the most attractive and visible sectors in the next 2-3 years time frame. </li>
<li>Even though <a href="https://www.smartkarma.com/entities/new-oriental-education-techn-cc88998e-fe0d-4a03-b544-f3e9836b06a2" target="_blank" data-smartkarma-citation="entities:531:1" rel="noopener">New Oriental Education &amp; Techn (EDU US)</a> had some hiccups in FY3Q24 results, they were mainly due to factors not related to the core after-school tutoring business.</li>
<li>My sector top pick is <a href="https://www.smartkarma.com/entities/china-beststudy-education-group" target="_blank" data-smartkarma-citation="entities:40632:1" rel="noopener">China Beststudy Education Group (3978 HK)</a>, as valuation is lower and growth is higher, though it has a much smaller market cap..</li>
</ul>


China after-school tutoring remains one of the most attractive and visible sectors in the next 2-3 years time frame. 
Even though New Oriental Education &amp; Techn (EDU US) had some hiccups in FY3Q24 results, they were mainly due to factors not related to the core after-school tutoring business.
My sector top pick is China Beststudy Education Group (3978 HK), as valuation is lower and growth is higher, though it has a much smaller market cap..


China After-School Tutoring:  Still In The Early Innings; Prefer China Beststudy Over EDU

<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-beststudy-education-group" target="_blank" data-smartkarma-citation="entities:40632:1" rel="noopener">China Beststudy Education Group (3978 HK)</a> is a Chinese K12 tutoring company with the majority of the learning centers in the Greater Bay Area. </li>
<li>The company is trading at 5x forward PE (2024), and I expect earnings to grow &gt;100% in 2024 off of a low base, and &gt;30% in 2025.  </li>
<li>I believe a forward PE of 10x is reasonable and conservative, which is at a discount to the market leader EDU's current 20x.</li>
</ul>



China Beststudy Education Group (3978 HK) is a Chinese K12 tutoring company with the majority of the learning centers in the Greater Bay Area. 
The company is trading at 5x forward PE (2024), and I expect earnings to grow &gt;100% in 2024 off of a low base, and &gt;30% in 2025.  
I believe a forward PE of 10x is reasonable and conservative, which is at a discount to the market leader EDU's current 20x.


China Beststudy Education (3978 HK):  A Darkhorse Stock In The China Tutoring Sector

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

New Oriental Education & Techn / Equity Bottom-Up

<ul><li>New Oriental Education & Technology Group reported its fourth quarter and full fiscal year 2026 results demonstrating revenue growth across several core and new business segments amid a challenging economic and regulatory environment.</li><li>The company’s total net revenue increased by 23% year-over-year to $1.53 billion in Q4, driven by progress in its core education business, overseas test preparation, adult and university student programs, and new initiatives such as non-academic tutoring and intelligent learning systems.</li><li>Non-GAAP operating income rose 34.7% to $110 million, reflecting improved operational efficiency and margin expansion despite some one-off restructuring costs.</li></ul>

New Oriental Education & Technology Group reported its fourth quarter and full fiscal year 2026 results demonstrating revenue growth across several core and new business segments amid a challenging economic and regulatory environment.The company’s total net revenue increased by 23% year-over-year to $1.53 billion in Q4, driven by progress in its core education business, overseas test preparation, adult and university student programs, and new initiatives such as non-academic tutoring and intelligent learning systems.Non-GAAP operating income rose 34.7% to $110 million, reflecting improved operational efficiency and margin expansion despite some one-off restructuring costs.

New Oriental Education & Technology Group’s $500 Million Capital Return Signals A Bold Reset!

New Oriental Education & Technology Group / Equity Bottom-Up

New Oriental Education & Technology Group (9901 HK)

New Oriental Education & Technology Group

<ul>
<li>
<a href="https://www.smartkarma.com/entities/new-oriental-education-techn" target="_blank" data-smartkarma-citation="entities:32210:1" rel="noopener">New Oriental Education &amp; Techn (9901 HK)</a> reported better than expected FY2Q24 results last night, with sales up 36% yoy and net profit up 183% yoy.</li>
<li>The company further guided a 42-45% sales growth in FY3Q24, well above market consensus. </li>
<li>The visibility for the next 2-3 years is actually quite high post-"double reduction" policy.</li>
</ul>



New Oriental Education &amp; Techn (9901 HK) reported better than expected FY2Q24 results last night, with sales up 36% yoy and net profit up 183% yoy.
The company further guided a 42-45% sales growth in FY3Q24, well above market consensus. 
The visibility for the next 2-3 years is actually quite high post-"double reduction" policy.


New Oriental Education (EDU US/9901 HK):  A Better Business Model In The Post "Double Reduction" Era

<ul><li>New Oriental Education & Technology Group reported its third quarter fiscal year 2026 results demonstrating ongoing revenue growth and improved profitability amid a dynamic operating environment.</li><li>Total net revenue increased nearly 20% year-over-year to approximately $1.42 billion, driven by strength in both core educational offerings and new strategic initiatives.</li><li>Non-GAAP operating income expanded 42.8% to about $203 million, and non-GAAP net income attributable to the company rose 34.3% to $152.2 million.</li></ul>

New Oriental Education & Technology Group reported its third quarter fiscal year 2026 results demonstrating ongoing revenue growth and improved profitability amid a dynamic operating environment.Total net revenue increased nearly 20% year-over-year to approximately $1.42 billion, driven by strength in both core educational offerings and new strategic initiatives.Non-GAAP operating income expanded 42.8% to about $203 million, and non-GAAP net income attributable to the company rose 34.3% to $152.2 million.

New Oriental Education Revenue Surges 20% But Overseas Consulting Headwinds Persist!

China

New Oriental Education & Technology Group, Inc. offers educational services. The Company offers foreign language training, test preparation courses for admissions and assessment tests in the United States, the PRC and Commonwealth countries, primary and secondary school education, and other services. New Oriental Education & Technology Group also operates software development.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

New Oriental Education & Techn (EDU US)

China After-School Tutoring: Still In The Early Innings; Prefer China Beststudy Over EDU

China Beststudy Education (3978 HK) is up 15% today on good volume on the back of raised guidance for FY24 by management. The stock has more than...

Steve

China Beststudy Education (3978 HK): A Darkhorse Stock In The China Tutoring Sector

High conviction pick in a very attractive sector with policy tailwind now. Volume starting to pick up indicating more investor interest. Still...

Steve

New Oriental Education & Technology Group’s $500 Million Capital Return Signals A Bold Reset!

New Oriental Education & Technology Group reported its fourth quarter and full fiscal year 2026 results demonstrating revenue growth across...

Baptista Research

New Oriental Education (EDU US/9901 HK): A Better Business Model In The Post "Double Reduction" Era

Shares up 8% today in a brutal market - the industry competitive fundamentals have changed for the better. A great opportunity in all stock market...

Steve

New Oriental Education Revenue Surges 20% But Overseas Consulting Headwinds Persist!

New Oriental Education & Technology Group reported its third quarter fiscal year 2026 results demonstrating ongoing revenue growth and...

Baptista Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)