9901:HKEXNew Oriental Education & Technology Group, Inc. Analysis

New Oriental is trading at HK$36.22, just above its identified support of HK$36 and well below the 20‑day SMA of HK$40.68, suggesting short‑term pressure but a clear technical floor. The RSI of 26.6 places the stock in oversold territory, while the MACD remains bearish, indicating momentum is still negative. Volume has been declining, which could limit any sharp bounce, but the proximity to support offers a potential entry point for risk‑averse traders. Fundamentally, the company posted a 19.8% revenue surge and maintains a healthy gross margin of 55%. Earnings are expanding, with forward EPS projected at 3.31 versus trailing EPS of 2.12, compressing the forward P/E to roughly 11x. The balance sheet is robust, featuring HK$4.8 bn in cash against HK$0.8 bn of debt and a modest payout ratio of 22% supporting the 2.5% dividend yield. Analyst consensus remains bullish, with a median price target of HK$55.5 and recent upgrades from BofA raising its target to $73.20, reinforcing a substantial upside potential. Given the blend of oversold technicals, strong cash generation, and favorable analyst expectations, the stock appears undervalued relative to its growth prospects. However, regulatory scrutiny of China’s education sector introduces a medium‑level risk that could temper long‑term gains.