New Oriental Online’s share price has risen nearly fivefold this year; inflation brings new winners

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New Oriental Online’s share price has risen nearly five times this year

The stock price of New Oriental Online has continued to hit new highs since December 8, 2020. Today (September 2), the closing market value reached 34 billion Hong Kong dollars, an increase of 471% during the year. The optimism stems from high expectations for the prospects of New Oriental’s live broadcast business.

This week, New Oriental Online disclosed its first fiscal year report after the “double reduction” (the fiscal year ended May 31, 2022), with an adjusted profit of 110 million yuan. Dongfang Selection became popular after June 9, so it has limited impact on the report data.

  • The fiscal year revenue of the live broadcast e-commerce business was 24.6 million yuan, the cost was 15.3 million yuan, and the gross profit margin was 37.8%.
  • With the impromptu performance of the anchor Dong Yuhui, the retail sales of Oriental Selection in the last three months were about 2 billion yuan.
  • Yin Qiang, vice president of New Oriental Education Technology Group, said that because it does not buy traffic and does not give anchors a share, “the profit margin of Oriental selection is much higher than that of pure live streaming or MCN companies.”
  • Yin Qiang also introduced that the sales revenue of Oriental Selection’s optional products accounted for about 15%.
  • An industry insider judged that the commission rate of the high-end agricultural products of Dongfang Zhenxuan is higher than the industry average, at least 20%.

According to a research report by Haitong Securities, since the launch in December 2021, the cumulative sales of Oriental Selection have been about 1.91 billion yuan, similar to the situation introduced by Yin Qiang. The third-party industry report shows that from August 12 to 26, the GMV of Dongfang Zhen’s self-operated products accounted for 34.5%, an increase of 7.7 percentage points from the previous 15-day statistical cycle. (Gong Fangyi and Chen Jing)


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Inflation brings new winners

When it comes to inflation — or rising prices — some companies shy away from it. Others see it as a sign of prosperity because their goods or services are also more expensive.

According to the monthly data from the National Bureau of Statistics, in the first half of this year, the “purchasing prices of major raw materials” in the Manufacturing Purchasing Managers’ Index (PMI) was above the boom line every month, reflecting the “expansion” of this part of the business. , that is, the price of raw materials. Meanwhile, PMI “factory prices” fell into contractionary territory in May and June after four months of expansion.


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We also inquired about the changes in the profits of industrial enterprises published monthly by the Bureau of Statistics. In the first half of the year, the profits of typical upstream resource enterprises such as oil and natural gas exploration, coal mining, mining, and non-ferrous metal mining and processing increased significantly compared with the same period last year. However, the profits of the middle and downstream manufacturing industries such as food manufacturing, paper making, rubber and plastic products declined to varying degrees.


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The recent interim reports disclosed by A-share companies also reflect the above trend, that is, the profits of companies that control raw materials have risen sharply, and mid- and downstream companies have “worked” for them . For example, the grain and oil giant Arowana wrote in its semi-annual report:

During the reporting period, affected by the repeated epidemics, the conflict between Russia and Ukraine, the energy crisis and other factors, the price of edible oil raw materials continued to run at a high level… The weak demand combined with the rising cost caused the profit space of edible oil processing enterprises to be double squeezed. unprecedented test.

  • In the second quarter of this year, the gross profit margin of arowana sales dropped to 7.53% (11.94% in the same period last year);
  • Net profit fell by 34% year-on-year;
  • Among the main raw materials purchased by Arowana, the domestic soybean spot price rose from 5,510 yuan per ton at the beginning of the year to 5,992.7 yuan per ton at the end of June;
  • Wheat (national standard third-class) rose from 2,832.4 yuan per ton to 3,127.8 yuan per ton in the same period;
  • Haitian Flavor Industry, which also uses soybeans as its main raw material, saw its gross profit margin drop from 39.31% in June last year to 36.63% in June this year.


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Tianqi Lithium, which holds the global core lithium mine assets, can be regarded as the most upstream of the electric vehicle industry chain. In the first half of this year, the profit attributable to the parent soared by 11,937%. The management of Tianqi Lithium discussed and analyzed the results of the first half of the year as follows:

The development of lithium resources is the first link in the value chain of the lithium industry, and high-quality raw materials are a prerequisite for the company’s sustainable development… Benefiting from the global boom in new energy vehicles, lithium-ion battery manufacturers are accelerating capacity expansion, and orders for downstream cathode materials are picking up, etc. Influenced by a number of positive factors, during the reporting period, the sales volume and average selling price of the main lithium products produced by the company increased significantly compared with the same period of the previous year. 

  • The market price of domestic battery-grade lithium carbonate (99.5% specification) rose from 278,000 yuan per ton at the beginning of the year to 469,000 yuan per ton at the end of June. The quotation at the end of June last year was only 41,000 yuan per ton.
  • Tianqi Lithium’s net profit in the first half of the year exceeded 10 billion yuan. At the same time, the net profit of BYD, the world’s top electric vehicle seller in the first half of the year, was “only” 3.5 billion yuan.


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Tianqi Lithium also mentioned the risk of price adjustment. Maybe this is just the “format clause” of semi-annual reports and annual reports, but at least it brings out the changing laws of commodity supply and price cycles:

The price increase caused by the shortage of upstream raw material supply will directly put pressure on the production cost of downstream end products, which will lead to the destruction of demand, which may force the downstream side to seek alternatives and reduce the demand for lithium. Reduced demand will directly lead to lower product prices, and just as rising prices spur rapid ramp-up of capacity across the supply chain, falling product prices will also put pressure on producers from lithium concentrate mining to lithium compounds.

There is no permanent champion. (Gong Fangyi)

Starbucks appoints an Indian-born CEO

On September 1, Starbucks announced that it will appoint Laxman Narasimhan as CEO-designate on October 1 this year, reporting to interim CEO Howard Schultz. It is expected to officially become CEO and join the board of directors in April next year. Narasimhan is the outgoing CEO of FMCG giant Reckitt Benckiser.

According to the disclosed announcement, Narasimhan earned a base salary of $1.3 million per year during his tenure at Starbucks and is eligible to receive annual equity awards with a target value of $13.6 million starting in fiscal 2023. In addition, he will receive a replacement stock with a target value of $9.25 million as compensation for leaving Reckitt Benckiser.

Narasimhan, 55, has worked in the consumer industry for many years.

  • Before joining Starbucks, he served as CEO of Dettol and Reckitt Benckiser, the parent company of Durex, for three years; served as chief commercial officer of PepsiCo and chief financial officer of PepsiCo America Foods; worked at McKinsey for 19 years, responsible for the United States, Asia and India Consumer, retail and technology businesses.
  • During his tenure at Reckitt Benckiser, he solved problems such as production failures, sluggish performance of core brands, and failed product launches, leading the company to tide over the predicament and winning praise from investors and analysts.
  • In the Chinese market, sell the Mead Johnson China business originally held by RB, and adjust RB’s product portfolio to seek higher growth.
  • He is yet another Fortune 500 CEO of Indian origin.
  • Indian CEOs in the retail sector include PepsiCo’s Indra K. Nooy and Gap’s Sonia Syngal;
  • There are more Indian-born CEOs in the technology field, such as Alphabet, Microsoft, Adobe, Micron, Twitter and other companies.

Schultz was to Starbucks what Jobs was to Apple.

  • From 1986 to 2000, he served as the company’s CEO for the first time and led Starbucks to the successful listing;
  • From 2008 to 2017, Schultz was in command for the second time, leading Starbucks through the financial crisis and accelerating its expansion;
  • In March 2022, after Kevin Johnson, who had worked at Starbucks for 13 years, announced his retirement, Schultz came out as interim CEO three times.

Analysts likened Starbucks to Schultz’s own son, pointing out that Schultz wanted to be sure to find someone who was both capable and tough. It is expected that Schultz will be deeply involved in the next period of time, and major issues such as operational decisions will still be his home field.

At the second-quarter results meeting this year, Schultz said he would announce a detailed plan to reshape Starbucks on September 13. Narasimhan will deal with the multiple challenges of Starbucks’ American union, rising employee turnover and declining performance in the Chinese market . (Intern Zeng Xing)

CHART OF THE DAY丨August ideal sales halved year-on-year, BYD’s growth rate and sales are far ahead


Note: Tesla’s August deliveries are expected to reach 77,000. Click to see larger picture


The parent companies of Momo and Tantan posted a net profit of 346 million yuan in the second quarter, down 25% year-on-year.

Zhiwen Group’s revenue and net profit both fell in the second quarter, and at the same time, paying users were lost. The poor performance is related to the decline in the revenue of the live broadcast business and the continuous loss of Tantan. In the second quarter, the revenue of live broadcast business was 1.52 billion yuan, a year-on-year decrease of 27.7%. Zhiwen’s two supporting businesses, Momo and Tantan, are facing the dilemma of declining revenue and difficulty in increasing paying users. In the second quarter, Momo had 8.6 million paid users and Tantan had 2.2 million paid users, both down year-on-year.

The advertising business was hit, and Weibo’s net profit fell by 65% ​​in the second quarter.

Weibo’s revenue in the second quarter was US$450 million, down 22% year-on-year; net profit was US$28.3 million, down 65.06% year-on-year. The decline in performance was mainly dragged down by the advertising business, which accounts for 85% of revenue. Advertising and marketing revenue in the second quarter was $386 million, down 23% year-on-year. The financial report stated that the repeated epidemics in major domestic cities and the upgrading of prevention and control measures have had a wide-ranging negative impact on the advertising industry. Blue cursor also fell 98.6% in net profit in the first half of the year due to the decline in advertising revenue.

McCafe replaces the latte with a “milk iron”.

Recently, McDonald’s Mccafe announced the launch of the “Milk Iron” series, which changed the extraction method and milk-to-coffee ratio of the original latte products, increasing the milk volume by about 30%. “Milk iron” will be used as the exclusive star product of McCafe, and latte will be completely removed from the shelves. McCafe expects to add about 1,000 stores next year, most of which are located in third-tier cities.

South Korean cosmetics giant Amorepacific will acquire US skincare brand Tata Harper.

Amorepacific announced that it will acquire Natural Alchemy, the parent company of Tata Harper, as part of its strategy to enter the North American market. According to people familiar with the matter, Tata Harper values ​​Amorepacific’s R&D capabilities and global influence, especially in Asia. The acquisition is expected to close in the fourth quarter of this year.

Buffett once again reduced his holdings of BYD.

According to Hong Kong Stock Exchange documents, Berkshire Hathaway, a subsidiary of Buffett, reduced its holdings of BYD H shares by 1.716 million shares on September 1, and its shareholding ratio fell from 19.02% to 18.87%. Since August 24, Berkshire has reduced its holdings of BYD shares by a total of 11.579 million shares. In 2008, Buffett invested in BYD at HK$8 per share, and the profit from the reduction of shares has exceeded 30 times.

Microsoft’s acquisition of Activision Blizzard faces UK antitrust probe.

British regulator CMA, concerned that the merger of Microsoft and Activision Blizzard could have adverse effects on the industry, said in a statement issued on September 1 that the two companies need to submit acceptable remedies by September 8 or face a The second stage of in-depth investigation. At the end of November last year, the CMA rejected Meta’s acquisition of Giphy.

The report says Beijing has entered a moderately aging society.

The “Beijing Aging Development Report (2021)” report shows that in 2021, the proportion of permanent residents aged 60 and above in Beijing will exceed 20% for the first time, and the proportion of permanent residents aged 65 and above will exceed 14% for the first time, marking Beijing’s official transition into a moderately aging society. 2021 is also the year with the largest increase and the largest growth rate in the resident elderly population in Beijing in the past five years.

The Medical Insurance Bureau asked for feedback, and 60% of the adults supported the price management of dental implants.

On September 2, the National Medical Insurance Bureau issued the “Notice on Carrying out Special Treatment of Oral Implantation Medical Service Fees and Consumables Prices (Draft for Comment)” for public comments. Among them, it is pointed out that about 60% of the feedback supports the implementation of special governance, and strongly reflects the problems of “astronomical charges” in the field of oral implantation, publicizing false subsidies, deceiving patients with low-priced advertisements, and buying and selling customers with “benefits”.

More than 900 cases have been reported in this round of epidemic in Chengdu.

  • On September 1, there were 318 newly confirmed cases in the local area, including 128 in Sichuan, 55 in Guangdong, and 46 in Tibet. There were 1,567 new local asymptomatic infections, including 575 in Tibet, 207 in Heilongjiang, 125 in Qinghai, and 125 in Liaoning. 114 cases.
  • Sichuan added “128+77”, a decrease from the previous day, among which Chengdu added “103+47”.
  • On September 1, the two major airports in Chengdu cancelled a total of 1,029 flights, accounting for 72% of the cancellations.
  • There have been more than 20 chains of transmission in this round of the epidemic in Chengdu, with a total of more than 900 reported cases.
  • Yaguang Technology announced on the evening of September 1 that all subsidiaries in Chengdu will temporarily suspend work and production since 18:00 on September 1.
  • Shenzhen added “50+37”, of which 79 cases were found among quarantine observers.
  • Beijing and Shanghai added 1 new local confirmed case, all of whom were quarantined observers.
  • On September 2, Shanghai added two high-risk areas, one of which is located in the ByteDance Office Building, Building 10, No. 1999, Yishan Road, Minhang District.
  • Xinle City, Hebei Province added “1+2”, which was announced by Xinle City. From 0:00 on September 3 to 24:00 on September 6, the city will continue to implement silent management.
  • Heilongjiang added “11+207” and Daqing added “3+201”. As of 24:00 on September 1, there were 113 high-risk areas in Daqing.

Half of Americans use an iPhone.

As of the end of June this year, the iPhone accounted for more than 50% of U.S. smartphones for the first time, setting the highest share since the iPhone was launched in 2007. The Android phone camp led by Samsung and Lenovo divided the remaining market share. The above statistics are based on the smartphone users are using, including users who bought iPhones in the second-hand market and users who use older iPhones.

An episode of 400 million “The Lord of the Rings” has mixed reviews.

The “Lord of the Rings” invested by Amazon was launched today (September 2). This 8-episode drama invested a total of 3.2 billion yuan, making it the “most expensive drama in history”. Amazon has shown the first two episodes in advance in more than 200 theaters around the world, and the current reputation is mixed. Some film critics have fully affirmed the narrative style and production level in the play, and some film critics think this show is not shocking enough. , Dialogue cliché.

U.S. gasoline futures fell to their lowest levels since the outbreak of the Russia-Ukraine conflict.


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Text | Gong Fangyi Intern Zeng Xing Intern Xue Yujie Chen Jing

Editor | Gong Fangyi

Title picture丨The movie “Super Life”

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