Yu Minhong confirmed that Sun Dongxu, the former CEO of Dongfang Zhenxuan, left for personal reasons, emphasizing that there are no barriers between the two parties

Yuan Minhong, Chairman of New Oriental Education Group, confirmed that Sun Dongxu, former CEO of Dongfang Zhenxuan, left for personal reasons, emphasizing that there are no barriers between the two parties. Sun Dongxu was dismissed from the CEO position in 2023 due to doubts about his management abilities and subsequently worked as a consultant. Yuan Minhong expressed hope that Sun Dongxu could return to a management position in the future and stated that the two maintain good communication. In February 2023, Sun Dongxu cashed out over HKD 200 million at a high price

The Nasdaq Golden Dragon China Index preliminarily closed up 0.1%. Among popular Chinese concept stocks, Jinkosolar rose 16%, Canadian Solar rose 13.7%, Pinduoduo, Tencent, Nio, and Li Auto rose over 1%; Baidu and XPeng fell over 1%, New Oriental EDU & Tech fell 3.3%, and XPeng fell 4.1%, while WeRide fell 5.1%. In terms of ETFs, CQQQ rose 1%, and KWEB rose 0.8%

The Half-Day Report: The Hang Seng Index closed at 25,878 points, down 73 points; the Hang Seng Tech Index closed at 5,771 points, down 46 points. New Oriental fell over 3%, while MTR CORPORATION and CEA hit new highs

The Hang Seng Index closed at 25,878 points, down 73 points or 0.3%; the Hang Seng Tech Index reported 5,771 points, down 46 points or 0.8%. The National Index fell 28 points, reporting 9,144 points. Meituan rose 1.8%, while Xiaomi, Ping An, Hong Kong Stock Exchange, Alibaba, and China Construction Bank all fell. New Oriental dropped 3.9%, MTR CORPORATION reached a new high, rising 0.9%; China Eastern Airlines reached a new high, rising 3.8%

Goldman Sachs raises New Oriental's target price to 47 yuan, maintains "Neutral" rating

Goldman Sachs raised the target price for New Oriental from HKD 42 to HKD 47, maintaining a "Neutral" rating. Management mentioned in the Q1 fiscal year 2026 earnings call that K12 business revenue will accelerate growth, operating profit margins will expand, and shareholder returns will not be lower than this year's level. The non-GAAP net profit forecast was raised by 4%. Meanwhile, the revenue forecast for EAST BUY was lowered by 12% to 13%, and the target price was raised from HKD 9 to HKD 10.2, maintaining a "Sell" rating

Revenue growth and profit decline, performance is mediocre, New Oriental currently lacks investment value

New Oriental Education & Technology Group announced its first-quarter results for the fiscal year 2026, with revenue increasing by 6.1% year-on-year to USD 1.52 billion, but profit slightly fell by 1.9% to USD 240 million, causing the stock price to drop over 9% at one point in the U.S. market. Although the company's stock price in Hong Kong has risen 22% over the past six months, recent business growth has been sluggish and faces bottlenecks, mainly influenced by U.S. policies