New Oriental’s Removal From Hang Seng China Enterprises Index Might Change The Case For Investing In EDU

• On 5 December 2025, New Oriental Education & Technology Group Inc. was removed from the Hang Seng China Enterprises Index, altering its presence in a major benchmark followed by many institutional investors.
• This index exclusion may influence how large funds and passive products hold the stock, potentially reshaping its investor base and trading profile.
• We will now examine how New Oriental’s removal from the Hang Seng China Enterprises Index could affect its investment narrative and outlook.

Find companies with promising cash flow potential yet trading below their fair value.

New Oriental Education & Technology Group Investment Narrative Recap

To own New Oriental, you need to believe its pivot toward non-academic tutoring, AI-powered learning, and diversified services can offset pressures in legacy segments and a slower macro backdrop. The removal from the Hang Seng China Enterprises Index appears more about index composition than fundamentals, so it may mainly affect near term trading flows rather than the key catalyst of scaling new offerings or the major risk of intensifying competition and policy sensitivities.

The most relevant recent update here is the board’s affirmation of a semi annual dividend and the approval of an ordinary cash dividend totaling about US$190 million in late 2025. Against the backdrop of potential selling by index trackers after the Hang Seng removal, this capital return and the ongoing buyback program may matter more for how the stock trades around near term catalysts such as progress in AI enabled learning products and broader revenue diversification.

Yet, while income and buybacks may appeal today, investors should also be aware of intensifying competition and policy risk that could...

Read the full narrative on New Oriental Education & Technology Group (it's free!)

New Oriental Education & Technology Group's narrative projects $6.5 billion revenue and $628.5 million earnings by 2028. This requires 9.7% yearly revenue growth and a roughly $256.8 million earnings increase from $371.7 million today.

Uncover how New Oriental Education & Technology Group's forecasts yield a $64.49 fair value, a 18% upside to its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community currently estimate New Oriental’s fair value between US$38.90 and US$127.02, underscoring how far opinions can spread. Set against concerns about rising competition and regulatory pressures, this breadth of views invites you to compare multiple scenarios for the company’s future performance.

Explore 4 other fair value estimates on New Oriental Education & Technology Group - why the stock might be worth over 2x more than the current price!

Build Your Own New Oriental Education & Technology Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your New Oriental Education & Technology Group research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free New Oriental Education & Technology Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate New Oriental Education & Technology Group's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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