New Oriental Education hit one-year high in Hong Kong after announcing stock buyback

 

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New Oriental Education opens more than 11% higher in Hong Kong Kong to hit HK$22.8, the highest level in more than a year. Overnight, the stock surged 12.67% in the US to close at $29, equivalent to HK$22.57.

The company on Wednesday announced a plan to repurchase up to $400 million ordinary shares from July 28 till May 31 2023.

The company’s latest earning report shoed that its net revenue fro the quarter ended May 31, 2022, reached $524 million yuan, sliding 56.8% from a year earlier, and its operating loss expanded by 3.2% year over year to $105.6 million. Net losses attributable to shareholders reached $189.3 million, expanding by 316.4% on year.

Dawai Securities raised price target on New Oriental Education & Technology to $32 from $30, reiterating a Buy rating. The analysts says the company’s new business are seeing strong demand and improving profitability and it’s set to become profitable again in fiscal 2023.

Macquarie raised the company to Outperform from Neutral.