4 days of live room GMV more than 70 million!Behind the selection of Dongfang, the customer unit price and selection are waiting to be tested

Although the live broadcast room of the Oriental Selection of New Oriental Online quickly burst into fire, it takes time to ferment GMV into income, which is finally reflected in the profit end.

"Investment Times" Researcher Prince Xixi

Recently, New Oriental Online Technology Holdings Co., Ltd. (hereinafter referred to as New Oriental Online, 1797.HK) under the Douyin Live Live Selection of Oriental Selection with the "bilingual" live broadcast and bringing the goods quickly. On June 10th, 11th, 12th, and 13th, the GMV of the live room reached 14.57 million yuan, 2014 million yuan, 16.067 million yuan, and 22.777 million yuan. ; And fans rose to more than 6 million in just a few days.

With the popularity of the live broadcast room, the stock price of New Oriental Online in the secondary market has also risen, from the closing price of HK $ 4.47/share on June 9th, soaring to the 15th closing price of HK $ 16.56/share (no right, the same below) The increase is amazing. Many securities firms believe that the selection of Oriental selection is related to the lack of more than 618 top anchors this year, and there is a gap between the merchant and the user side; and the differentiated live broadcast atmosphere and the product endorsement of the new Oriental brand.

Public information shows that Oriental selection and operating main company was established in October 2021. The live broadcast room is positioned as a live broadcast and cargo platform. According to the financial report released in February 2022, the company proposed the five major business development directions of university education, overseas test preparation, institutional cooperation and live broadcast, and education intelligence hardware. Essence

According to the financial report, as of November 30, 2021, the total revenue of New Oriental Online achieved a total revenue of 574 million yuan, a year -on -year decrease of 15.3%; affected by the increase in gross margin and the gradual termination of the K9 business, the loss during the period was compared to the same period of the previous year. Narrow to 544 million yuan. Some analysts believe that the company's profitability has been dragged down by K12 off -campus training business before, and the profitability of the main education industry after the "double reduction" policy will improve significantly.

Considering that at that time, the company's K12 business has not yet been completely cleared, and the profit of the main education business is to be viewed. In addition, although Oriental selection quickly burst into fire, it takes time to ferment the transformation of GMV into revenue, which is finally reflected in the profit end. The next financial report is required.

It should also be noted that the hot -selling category of the live broadcast room is mainly based on food, drinks, fresh fruits and vegetables, books, and the unit price is not as good as some of the head price of high -customer unit prices such as cosmetics and 3C appliances. If the category will be widened in the future, whether it will lose the original intention of the live broadcast room as "agricultural products"; if the existing main sales category will be maintained, how to solve the problem of customer unit price; including supply chain management, etc., will become one of the issues for the company to be tested.

New Oriental Online this year's stock price trend (Hong Kong dollar)

Data source: wind

Oriental selection explosion fire

On June 10th, in the East Selection Live Room, Dong Yuhui, a former high school English teacher in New Oriental, hit his face "Terracotta Warriors" and wrote words and phrases on a small white board while he had hit his face. Since then, with the "bilingual" live broadcast and interesting, the East selection live broadcast platform has quickly become popular, and the number of viewers and single -day sales have skyrocketed.

Some netizens said that they were convinced by Dong Yuhui; some netizens joked and could not die. According to the WeChat Index data, on June 11th, the "Eastern Selection" keyword search index was as high as 137%on the month.

According to data from Cicada Mom, on June 10, the East selected viewers and GMVs reached 9.07 million and 14.57 million yuan, respectively. On June 11, the above two data continued to rise, 12.75 million and 2014 million yuan, respectively. On the same day, Oriental selected the sixth in the List of Douyin Live Broadcasting, second only to Jia Nailiang, Nicole Nicole, Crazy Little Brother Yang, Cao Ying, and Qingqing.

On June 12th and 13th, Oriental selection continued to take GMV for 16.067 million yuan and 22.77 million yuan, ranking eighth and second in the list of people with goods. And as of 10 am on June 15th, the fans of the live broadcast room had reached 6.126 million, while fans rose from 1 million to more than 6 million, but for a few days.

With the explosion selected by Oriental, the stock price of New Oriental's online online also climbed up. From the closing price of HK $ 4.47/share on June 9, the closing price of the 15th was HK $ 16.56/share. On the 10th, 13th, 14th, and 15th, the single -day increases were 39.37%, 39.97%, 23.17%, and 54.19%, respectively, and the cumulative increase of nearly 1.6 times the 4 trading days.

Regarding the explosive fire selected by the East, Soochow Securities believes that the selection of oriental selection is hot at the current point. In addition to the early platform is in the exploration running -in stage and the traffic is restrained, the trend of the demodity of the live e -commerce industry is also an important catalytic. High -quality small and medium anchors are welcoming important development opportunities.

Guohai Securities believes that the core advantage of the live broadcast room lies in differentiated live broadcast atmosphere, rich talent reserves, and products of the endorsement of the New Oriental brand, that is, the underlying logic of the company's transformation of the live broadcast business lies in the genetic teacher genes in New Oriental culture, and teach and cultivate The high -quality content development experience accumulated by the industry has been similar to the live broadcast industry. In the future, it will focus on the company's education hardware and live broadcast business.

Supply chain management, selection to be tested

The Douyin platform shows that Oriental selection is the official account of Oriental Optimum (Beijing) Technology Co., Ltd. (hereinafter referred to as Oriental Optimum), which is the only live broadcast and cargo platform for New Oriental Group and New Oriental Online. According to the data of Tianyancha, Oriental was preferably established in October 2021, and the legal representative Sun Dongxu was held by Beijing New Oriental Cyber ​​Network Technology Co., Ltd., which is the new business of New Oriental Online. In July 2021, the "dual reduction policy" was released; in late October that year, New Oriental issued an announcement online that the K9 business was terminated and expected to take effect by the end of November of that year. On December 28 of that year, Yu Minhong and New Oriental Online CEO Sun Dongxu respectively played agricultural products in Yu Minhong's personal Douyin live room and Oriental selection live room.

On February 25, 2022, the company stated in the financial report that actively adjusted existing business lines and service projects. On the one hand, it will continue to expand the existing university and institutional business departments and online education products and service projects; on the other hand, explore new measures to expand customer bases and products. The new measures include the live broadcast business of agricultural products and other products, and education intelligent hardware products business.

According to the financial report data, as of November 30, 2021, the total revenue of New Oriental Online achieved a total revenue of 574 million yuan, a decrease of 15.3%from the same period last year. Among them, the revenue of the university education division decreased by 8.5%year -on -year to 268 million yuan; the revenue of the K12 Education Division decreased by 19.7%year -on -year to 270 million yuan. The revenue from institutional customers fell 62.2%, 21.6%, respectively to 1.679 million yuan and 33.72 million yuan.

During the reporting period, the increase in gross profit margin, the gradual termination of the K9 business, and the decrease in K12 business marketing expenditure. As of the six months of the end of November 2021, the loss of 544 million yuan during the recording period of New Oriental Online was narrowed from the same period last year. 130 million yuan; the loss of 410 million yuan during the adjustment period, and the losses narrowed by 252 million yuan year -on -year.

It is worth noting that in May this year, Yu Minhong said at the Yabuli Forum that he chose "two feet walking", and the US stocks New Oriental (Edu.n) insisted on the main business of education, and Hong Kong stocks New Oriental online opened a new broadcast business. And recently, the company has been exposed to high salary recruitment anchors. However, Dongfang's selection of popularity can increase the company's performance, or it takes time to ferment.

According to CITIC Securities Research Report, if the normalized daily sales of GMV can reach 8 million to 10 million yuan, the corresponding GMV is about 2.9 billion yuan to 3.7 billion yuan. With reference to the income/GMV ratio of about 20%of the Yoshangwang Network (retired), the corresponding income is 580 million to 730 million yuan; if the company increases the proportion of independent brands, the conversion rate may be higher.

The Zhejiang Business Securities believes that the selection of sales categories in the East is mainly based on food, beverages, fresh fruits and vegetables, and books. Users are mainly women and are concentrated in the college entrance examination provinces. It is related to overlapping. However, the unit price of the live broadcast room is less than 100 yuan. Compared with the unit price of more than 130 yuan in the live room price of "making friends" (formerly Luo Yonghao), there are lower positions at a lower position because of the fewer high -customer unit price categories such as cosmetics and 3C appliances. If the category is widened in the future, the unit price may increase.

Cinda Securities Research Report also pointed out that due to the in -depth supply chain upstream of the live broadcast e -commerce, it is the industry trend in order to grasp the right of commodity prices, and agricultural products are non -standard products. As an educational technology company, supply chain management and selection are one of the main tests in the future.

As of November 30, 2021, the revenue of each branch of New Oriental Online (1,000 yuan)

Data source: company financial report

- END -