7 Most Profitable Chinese Stocks To Invest In

4. New Oriental Education & Technology (NYSE:EDU)  

TTM Net Income: $310 Million  

5-Year Net Income CAGR: 5.39%  

Number of Hedge Fund Holders: 37  

New Oriental Education & Technology (NYSE:EDU) is a leading provider of private educational services in China, offering tutoring, K-12 education, test preparation, vocational training and language training. The company has built itself as a trusted name in the Chinese education market.

New Oriental Education & Technology (NYSE:EDU) has demonstrated impressive financial growth, with a net income of $0.310 billion for the twelve months ending May 31, representing a significant 74.57% year-over-year increase, and a 5-year net income compound annual growth rate (CAGR) of 5.39%, while also attracting the attention of institutional investors, with 37 hedge funds holding stakes in the company who invested a total of $1.27 billion.

The company is also expected to achieve significant operating margin expansion in the near future, driven by strong revenue growth and the improved utilization rate for new learning centers. In Q4,  New Oriental Education & Technology’s (NYSE:EDU) revenue rose by 32.1% YoY to $1.13 billion, and the company has guided its top line for its core education services business to increase by between 31% YoY and 34% YoY for Q1 2025. This robust revenue growth is expected to drive an improvement in the company’s operating margin as the company’s new learning centers mature.

In August, New Oriental Education & Technology (NYSE:EDU) indicated its intention to consider additional dividend distributions in the future with the share repurchase program increased from $400 million to $700 million. The upsized share repurchase program is effective through May 31, 2025.