New Oriental's stock price reached a new high during the year, and fans in the live broadcast room slowed down but the conversion rate increased

Jimu Journalist Zeng Lingzheng

Video editing Zeng Lingyun

On September 1, New Oriental Online stocks once rose more than 11%, a new high since October 2020. Just one day ago, it just announced the cooperation with SF and Jingdong Logistics to build a self -operated product warehouse. Earlier, Oriental selection has also launched an independent app of the same name in major app stores. Jimu Journalists observed that although the East's selection action has been frequent in the near future, the number of viewers in the live broadcast room since July only half of the peak in June, and the growth rate of fans has also slowed down. However, many securities firms have pointed out that although the growth rate of fans has slowed down, the average daily product transaction volume of the live broadcast room has stabilized at more than 20 million yuan, and the conversion rate of goods has also achieved steadily improvement. Oriental selection is moving towards steady development.

Oriental selection action frequency

On September 1st, the Hong Kong stocks New Oriental rose more than 10%online, and the tenth consecutive trading day rose to HK $ 32.78. The stock price continued to reach a new high since June 17 this year. At 10 o'clock, its stock price rose to HK $ 33.3, breaking through the June high.

New Oriental Online Stock Prices reached the new high (picture source: third -party stock platform)

Earlier, it just launched the Oriental Selection APP in major app stores. At the New Oriental Online performance telephone meeting on August 30, New Oriental Online Executive Director and CFO Yin Qiang revealed that Oriental selection should be around 2 billion yuan in nearly three months. "There is no comparison model in the market, because it is not a pure live broadcast company or a MCN company." Yin Qiang said.

On August 31, Oriental selection once again declared that it reached a close partnership with SF Logistics and Jingdong Logistics. Products provide logistics services for the country. Sun Dongxu, the person in charge of Dongfang selection, said: "Self -operated products are facing the nation's layout. We will adhere to the original vision and provide customers with better products and services with more outstanding partners."

Outside the Douyin platform, the East selection is continuing to make efforts. However, Jimu Journalists observed that in the "where the dream starts" -the Douyin live room, the number of live viewers and the growth rate of fans are slowing down.

Oriental selection Douyin live room viewing trend (picture source: new list)

According to the new list data, from June 1st to June 29th, the Dongfang selected live broadcast rooms have risen from less than one million to 20 million, and the daily increases of millions. However, since July, the growth rate of fans in the live broadcast room has dropped to 30,000 to 40,000 per day. The number of viewers in the live broadcast room also exceeded 60 million during the peak, and developed to nearly 10 million to 20 million people recently.

Analysis states that it has moved from "explosive fire" to steady development

However, the industry is still optimistic about the development of the East. Most brokerage analysis believes that the selection of oriental selection is moving towards steadily.

On August 31, the Huatai Securities Section Union team released a research report analysis that at present, Oriental selection is moving from "explosive fire" to steady development, and user stickiness continues to increase. Its barriers and profitability are expected to gradually strengthen.

Oriental Selection Douyin Live Room Fan Change Trends (Picture Source: New List)

"With the slowdown of fan growth in July to August, the average daily product transaction (GMV) of the" East Selection 'Douyin Live Room still maintains more than 20 million yuan. The sales volume of the purchase of goods after the total browse) has been steadily improved. Other data shows that as of August 28, the "Oriental Selection 'Douyin Live Room in the last 90 days/30 days/7 days of the transformation rate of goods is respectively. For 1.5%/1.85%/2.28%, we believe that this indicates that high -stick retained users have gradually replaced new users and become the main contributors to GMV. "Huatai Securities analysts wrote.

Huatai Securities also believes that the characteristics of Yin Qiang's "neither MCN company nor a live broadcast company" are characterized by the characteristics of Eastern Selection. Unlike the "pit fee+commission" charging format in the live e -commerce industry, Dongfang has not charged the pit fee so far, and has a stronger commission premium ability in theory. In addition, Oriental selection has not made high division of incentives to the anchor in accordance with the common practices of the industry, so the cost of anchor will be lower than the MCN institutions that are mainly based on the stars. To this end, Huatai Securities directly predicts that the fiscal year in 2023, live broadcast e -commerce will become the main source of income and profit for listed companies New Oriental Online. The Zhang Liangwei team of Soochow Securities also believes that New Oriental Online's live e -commerce business is worth looking forward to. At present, the New Oriental Live Team has exceeded 200 people, and the number of anchors is still increasing, and live broadcasts such as the purchase rate, repurchase rate and return rate of fans are leading the industry. In addition to the high division of anchors to reduce the cost of bringing goods, Soochow Securities also pointed out that Oriental selection relies on content to obtain customers, which can save traffic purchase costs.

However, the two brokers also reminded that in the future, New Oriental live broadcast will also face the risk of anchor loss. In addition, e -commerce live broadcast is a emerging industry or facing industry policy risks.

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