＜Research＞Daiwa Expects Dong Yuhui's Departure to Have 5-7% Impact on NEW ORIENTAL-S (09901.HK) Earnings

　　EAST BUY (01797.HK) +0.260 (+2.737%) Short selling $39.00M; Ratio 16.766% , a subsidiary of NEW ORIENTAL-S (09901.HK) +1.600 (+2.912%) Short selling $4.50M; Ratio 3.022% , announced last week that it had sold 100% of its shares in Time with Yuhui (Beijing) Technology Limited, a live e-commerce business owning the “Time with Yuhui” brand, to Dong Yuhui for RMB76.59 million.

　　According to a research report by Daiwa, it is expected that Dong's departure will have a 2% to 4% drop in NEW ORIENTAL's FY25 revenues and a 5% to 7% negative impact on its earnings, which is manageable as its core business has operational leverage to offset the impact. In addition, with live e-commerce earnings declining further for NEW ORIENTAL, the market will view its earnings as coming from its core education business.

　　Related NewsCICC Axes EAST BUY (01797.HK) TP by 68% to $11.5, Keeps Outperform Rating

　　The broker reiterated its Buy rating on NEW ORIENTAL.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-29 12:25.)

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