(Original title: Hong Kong stock education stocks strengthened, New Oriental Online once exceeded 14%)
Financial Associated Press, August 28 (Editor Hu Jiarong)This Monday, the Hong Kong stock market was adjusted by the US stock market last Friday, while the trend of education stocks was not affected by the market. Among them, New Oriental Online (01797.HK) once rose by more than 14% in early trading, but then the gains narrowed.
As of press time, New Oriental Online rose 4.62%, Tianli International Holdings (01773.HK) rose more than 19%, and Siile Education (01769.HK) rose 5.13%.
Note: Performance of education stocks
Triggered some education stocks to strengthen, which can be attributed to the release of New Oriental Online’s annual results ended May 31, 2022.
From the above figure, New Oriental Online achieved revenue of 898.5 million yuan in fiscal year 2022 (the same unit below), a year-on-year decrease of 36.7%; the net loss was 533.9 million yuan, and the loss narrowed by 67.8% year-on-year.
At the same time, New Oriental Online announced that the total revenue of the live e-commerce segment was 24.6 million yuan, the gross profit of the segment was 9.3 million yuan, and the gross profit margin was 37.8%.
Note: New Oriental online live broadcast business revenue and expenditure
Since Dongfang Selection, a live broadcast room under New Oriental Online, became a hit, the market has paid more attention. For example, Dong Yuhui and other New Oriental lecturers have bilingual live broadcasts because of their novel and refreshing format. The agency once pointed out that the underlying logic of New Oriental’s transformation of the live broadcast business lies in the genes of famous teachers in New Oriental culture, and the company’s high-quality famous teacher resources will become an effective support for long-term development.
Regarding Oriental Selection, New Oriental Online pointed out that in the future, it will continue to improve the shopping experience of consumers, focus on creating innovative and high-quality content for broadcasting, and at the same time, it will continue to improve its supply chain capabilities and gain support from different strategic alliances. This business line is expected to be the main growth driver in the future.
Everbright Securities pointed out that the live broadcast content and product supply chain of New Dongfeng Online are of high quality, the teacher-transformed anchor team has a competitive advantage, and the e-commerce business leverages the fast-growing Douyin platform. There is a lot of room for improvement in indicators such as conversion rate and customer unit price. Faster growth in GMV in FY23-25. Businesses such as K12 with relatively high losses have ceased, and the company expects to turn losses into profits in fiscal 2023.