NEW ORIENTAL-S (09901) gained over 3% in afternoon trading, reaching HK$41.66 with a turnover of HK$125 million. The company reported its Q1 FY2026 results, showing a 6.1% year-on-year increase in net revenue to US$1.523 billion. Operating profit rose 6.0% to US$311 million, while attributable net profit declined 1.9% to US$241 million.

Analysts noted a 1 percentage point year-on-year improvement in adjusted operating margin, driven primarily by the performance of its subsidiary Oriental Selection. NEW ORIENTAL-S maintains a leading position across segments, including K12 and overseas businesses.

The company's generative AI applications—such as automated course material generation, digital avatars of star teachers, and AI-assisted grading—are expected to enhance operational efficiency and content quality. Additionally, NEW ORIENTAL-S announced a three-year shareholder return plan with a dividend payout ratio of at least 50%. Based on FY2025 net profit of US$372 million and current market capitalization, this translates to a yield of approximately 2.7%, reflecting management's confidence in sustained profitability.