How Investors May Respond To New Oriental Education & Technology Group (EDU) Major Stake Build By First Beijing

• In the third quarter of 2025, Hong Kong-based First Beijing Investment purchased 2.23 million shares of New Oriental Education & Technology Group, lifting the position’s value by US$112.15 million and making EDU its third-largest holding.
• This sizeable allocation by a dedicated regional investor highlights growing institutional interest in New Oriental’s business model and operational resilience despite earlier share price pressure.
• We’ll now examine how First Beijing Investment’s large commitment could influence New Oriental’s investment narrative and perceived institutional support.

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New Oriental Education & Technology Group Investment Narrative Recap

To own New Oriental, you need to believe it can balance mature education services with newer, less proven areas while managing regulation and competition. First Beijing Investment’s large purchase supports sentiment around resilience, but it does not materially change the key near term catalyst of execution in non academic and cultural tourism businesses, nor the biggest current risk that these initiatives may deliver weaker than hoped returns and weigh on margins.

The recently affirmed FY2026 revenue guidance of US$5,145.3 million to US$5,390.3 million, alongside a new US$300 million share repurchase authorization, is especially relevant here, as it frames how management is signaling confidence in cash generation while investors scrutinize whether growth in newer segments can offset headwinds in overseas study and K 12 related areas.

Yet beneath the apparent institutional support, investors should be aware of the ongoing risk that newer ventures 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 about a $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 12% upside to its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community span roughly US$38.90 to US$128.03 per share, showing how far apart individual views can be. When you set those side by side with concerns about slower overseas study demand and execution risk in newer segments, it underlines why many market participants are weighing several different paths for New Oriental’s future performance before making up their minds.

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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