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Quantasing Group Ltd. ADR (QSG)
NASDAQ:QSG
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Quantasing Group Ltd. ADR
(NASDAQ:QSG)
Rating:68Neutral
Price Target:
$8.50
▲(10.39% Upside)
Positive Factors
Market Position
Analyst upgrades QSG to Buy from Neutral/High Risk, raising the target price significantly.
Revenue Growth
WAKUKU Gen-2 restocking is expected to lead to immediate revenue acceleration.
Strategic Pivot
The strategic pivot to direct-to-consumer creates a dual financial uplift with significant margin expansion and revenue amplification.
Negative Factors
Demand Uncertainty
The management's latest update reinforces the conviction that WAKUKU production remains less than 50% of demand even after significant expansion, validating explosive market reception.
Execution Risk
New intellectual property launches and strategic relaunches are being tested for scalability beyond WAKUKU’s viral success.
Production Shortfall
WAKUKU's production currently meets less than 50% of demand, with products reselling at five times retail price in secondary markets.
Quantasing Group Ltd. ADR (QSG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$402.52M
Dividend YieldN/A
Average Volume (3M)564.41K
Price to Earnings (P/E)6.9
Beta (1Y)0.82
Revenue Growth-14.74%
EPS Growth90.91%
CountryUS
Employees827
SectorIndustrials
Sector Strength74
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.03
Shares Outstanding34,493,320
10 Day Avg. Volume525,054
30 Day Avg. Volume564,413
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.22
Enterprise Value/Revenue0.03
Enterprise Value/Gross Profit0.04
Enterprise Value/Ebitda-0.26
Forecast
1Y Price Target
$14.00Price Target Upside81.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Quantasing Group Ltd. ADR Business Overview & Revenue Model
Company DescriptionQuantaSing Group Limited provides online learning services in the People's Republic of China. The company offers online courses, including financial literacy, short-video production, personal well-being, electronic keyboard, Chinese painting, Erhu, and data analytics courses to adult learners under various brands, including QiNiu, JiangZhen, and QianChi. It also provides marketing and enterprise talent management services to enterprise customers. QuantaSing Group Limited was founded in 2019 and is based in Beijing, the People's Republic of China.
How the Company Makes MoneyQuantasing Group Ltd. generates revenue primarily through the sale of its software solutions and analytics services. Key revenue streams include subscription fees from its cloud-based platforms, one-time licensing fees for on-premises software, and consulting services that help clients implement and optimize their data strategies. Additionally, QSG has established strategic partnerships with leading technology firms and industry players, which not only enhance its product offerings but also open up new revenue opportunities through joint ventures and collaborative projects. The company's ability to leverage data-driven insights for its clients further solidifies its market position and contributes to its overall earnings.
Quantasing Group Ltd. ADR Earnings Call Summary
Earnings Call Date:Jun 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Sep 12, 2025
Earnings Call Sentiment Neutral
QuantaSing's earnings call presented a mixed sentiment. The company displayed strong strategic direction and promising growth in the Pop Toy market, coupled with high satisfaction in their senior programs. However, there was a significant decline in overall revenue and specific service sectors as they transition their business model.Q3-2025 Updates
Positive Updates
Revenue Achievement
QuantaSing achieved revenue of RMB 570.7 million, marking a significant milestone in their strategic shift from traffic-driven to product-driven business models.
Successful Consolidation and Market Expansion
The consolidation of Letsvan positions QuantaSing at the forefront of the high-growth Pop Toy market, with promising initial results in IP development and market performance.
High Satisfaction and Retention in Senior Programs
Calligraphy program achieved a repeat purchase rate exceeding 55%, and an integrated approach to learning and trips resulted in a 100% satisfaction rate among participants.
Solid Gross Margin and Profitability
The company maintained a high gross margin of 83.1% and achieved a net income of RMB 41.1 million, despite a decrease in revenue.
Strategic Expansion in Pop Toy Market
The launch of new WAKUKU series achieved record-breaking sales, and international expansion into Southeast Asia is underway with positive reception.
Negative Updates
Revenue Decline
Total revenues decreased by 39.6% year-over-year, reflecting the transition from traffic-driven to product-driven models.
Decline in Individual Online Learning Services
Gross billings from individual online learning services fell by 47.5% year-over-year.
Decrease in Enterprise Services Revenue
Enterprise services revenue declined by 26.1% due to fewer marketing services for enterprise customers.
Company Guidance
During QuantaSing's earnings call for the third quarter of fiscal year 2025, the company reported a revenue of RMB 570.7 million, marking a 39.6% decrease year-over-year. The company has been transitioning from traffic-driven to product-driven business models, which led to this revenue decline. Significant highlights include the consolidation of Letsvan, positioning QuantaSing in the high-growth Pop Toy market. The calligraphy program achieved a repeat purchase rate exceeding 55%, and the first online learning and offline graduation trip had a 100% satisfaction rate. QuantaSing's IP-driven strategy with Letsvan includes successful launches like the WAKUKU series, achieving record-breaking sales. The company maintained a gross margin of 83.1% and achieved a net income of RMB 41.1 million, representing a net margin of 7.2%. QuantaSing plans to continue expanding its Pop Toy business both domestically and internationally, leveraging synergies with Letsvan to drive growth, while maintaining a disciplined approach to revenue allocation and strategic investments.Quantasing Group Ltd. ADR Financial Statement Overview
Summary
Quantasing Group Ltd. ADR has shown strong financial performance with significant revenue growth and a return to profitability. The balance sheet is stable with low leverage, though past negative equity is a concern. Cash flow metrics are robust, indicating efficient cash generation.Income Statement
Quantasing Group Ltd. ADR has shown impressive revenue growth, with a 23.2% increase from the previous year. The gross profit margin stands at a strong 85.5%, indicating efficient cost management. The net profit margin has improved significantly to 10.2% from a negative position, reflecting a turnaround in profitability. EBIT and EBITDA margins have also turned positive, demonstrating improved operational efficiency.85
Very Positive
Balance Sheet
The company maintains a healthy equity ratio of 36.2%, suggesting a stable financial structure. The debt-to-equity ratio is low at 0.13, indicating low leverage and reduced financial risk. Return on equity has improved to 74.7%, driven by the significant increase in net income. However, the company has a history of negative equity, which poses a potential risk.70
Positive
Cash Flow
Operating cash flow has increased, supporting the company's liquidity position. The free cash flow to net income ratio is strong, reflecting efficient cash generation relative to net income. The company has demonstrated consistent free cash flow growth, enhancing its ability to fund operations and investments without relying heavily on external financing.78
Positive
| Breakdown | TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.96B | 3.80B | 3.08B | 2.87B | 1.76B |
| Gross Profit | 2.52B | 3.25B | 2.69B | 2.46B | 1.58B |
| EBITDA | -340.88M | 395.93M | -109.48M | -224.71M | -322.50M |
| Net Income | -171.43M | 385.53M | -108.54M | -233.43M | -316.04M |
Balance Sheet | |||||
| Total Assets | 1.22B | 1.43B | 1.22B | 603.47M | 330.23M |
| Cash, Cash Equivalents and Short-Term Investments | 930.58M | 1.03B | 930.58M | 399.06M | 54.73M |
| Total Debt | 93.93M | 66.09M | 93.93M | 22.90M | 9.07M |
| Total Liabilities | 997.60M | 909.53M | 997.60M | 1.39B | 609.73M |
| Stockholders Equity | 223.70M | 516.48M | 223.70M | -789.35M | -279.51M |
Cash Flow | |||||
| Free Cash Flow | 229.46M | 279.08M | 229.87M | 268.08M | 43.80M |
| Operating Cash Flow | 232.94M | 282.72M | 235.62M | 272.64M | 79.42M |
| Investing Cash Flow | 64.70M | -132.78M | 201.00K | -108.58M | -62.35M |
| Financing Cash Flow | -38.40M | -130.19M | 247.70M | 71.63M | -21.09M |
Quantasing Group Ltd. ADR Technical Analysis
Negative
7.70
Price Trends
8.62
Negative
7.94
Negative
5.32
Positive
Market Momentum
-0.15
Negative
45.28
Neutral
21.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QSG, the sentiment is Negative. The current price of 7.7 is below the 20-day moving average (MA) of 7.85, below the 50-day MA of 8.62, and above the 200-day MA of 5.32, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 45.28 is Neutral, neither overbought nor oversold. The STOCH value of 21.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QSG.
Quantasing Group Ltd. ADR Risk Analysis
Quantasing Group Ltd. ADR disclosed 103 risk factors in its most recent earnings report. Quantasing Group Ltd. ADR reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Quantasing Group Ltd. ADR Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $111.68M | 2.44 | 54.65% | ― | -3.74% | -26.52% | |
77 Outperform | $368.93M | 4.74 | 8.67% | ― | -7.36% | ― | |
75 Outperform | $140.65M | 10.39 | 11.29% | 3.24% | -9.70% | -30.98% | |
68 Neutral | $402.52M | 6.88 | 82.82% | ― | -14.74% | 90.91% | |
64 Neutral | $10.73B | 15.74 | 7.56% | 2.01% | 2.76% | -15.10% | |
48 Neutral | $260.60M | ― | 180.24% | ― | 91.86% | 52.66% | |
47 Neutral | $130.65M | ― | -108.11% | ― | -3.31% | 61.14% |
* Industrials Sector Average
Performance Comparison
QSG
Quantasing Group Ltd. ADR
7.70
6.12
387.34%
COE
China Online Education Group
47.99
32.99
219.93%
STG
Sunlands Online Education Group
8.72
3.22
58.55%
SKIL
Skillsoft
15.38
0.38
2.53%
VSTA
Vasta Platform
4.54
2.04
81.60%
IH
iHuman
2.74
1.24
82.67%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.