Goldman Sachs has released a research report indicating an adjustment in the valuation period for NEW ORIENTAL-S (09901) from the fiscal year ending May 2026 to the calendar year 2027, aligning with the bank's coverage of other stocks. As a result, the target price has been raised from HK$50 to HK$55, with the "Buy" rating maintained.
Following the company's fourth-quarter results announcement, the bank has increased its revenue forecasts for NEW ORIENTAL-S for the 2027-2028 fiscal years by 3-4%, primarily driven by higher revenue contributions from Oriental Selection (01797). However, the adjusted earnings per share estimate has been reduced by 4% to account for higher withholding tax expenses related to the implementation of the company's shareholder return plan.
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