Movement Alert|NEW ORIENTAL-S Declines 3.05% in Regular Trading, CEO Share Sale and Profitability Concerns Continue to Weigh on Stock

Market Focus
Aug 13

On August 13, NEW ORIENTAL-S fell 3.05% in regular trading, trading at 41.44 HKD/share, with turnover of 21.3174 million HKD, extending its decline from the previous session.

On the news front, NEW ORIENTAL-S CEO Zhou Chenggang sold 70,000 shares on August 7, cashing out approximately $3.98 million (around RMB 26.85 million). The executive share disposal has continued to weigh on short-term market sentiment. Additionally, market analysis has highlighted concerns over the company's earnings quality — while New Oriental's revenue scale is nearly double that of TAL Education, its operating profit margin stands at roughly one-third of its peer's, raising investor doubts about profit sustainability amid its aggressive expansion strategy and associated cost pressures.

Despite multiple institutions maintaining \"Buy\" ratings — with Goldman Sachs raising its target price to 55 HKD and CMBIS setting a target of 90 USD — the stock has seen consecutive declines since the insider sale disclosure, suggesting the market is repricing near-term risk around capital efficiency and margin trajectory.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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