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Quantasing Group Ltd. ADR (QSG)
NASDAQ:QSG
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Quantasing Group Ltd. ADR
(NASDAQ:QSG)
Rating:80Outperform
Price Target:
$9.00
▲(12.50%Upside)
Positive Factors
Market Demand
Supply bottleneck resolution is expected to unleash demand, driving sequential revenue increases.
Revenue Growth
The designer toy segment is forecasted to become the company's primary growth driver, with revenue expected to skyrocket significantly.
Strategic Transformation
The strategic pivot to direct-to-consumer creates a dual financial uplift with significant margin expansion and revenue amplification.
Negative Factors
Execution Risk
Management's latest update reinforces the conviction that WAKUKU production remains less than 50% of demand even after significant expansion, validating explosive market reception.
Production Capacity
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
$409.69M
Dividend YieldN/A
Average Volume (3M)1.67M
Price to Earnings (P/E)7.1
Beta (1Y)0.51
Revenue Growth-14.74%
EPS Growth90.91%
CountryUS
Employees827
SectorIndustrials
Sector Strength87
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.03
Shares Outstanding34,493,320
10 Day Avg. Volume2,508,615
30 Day Avg. Volume1,669,663
Financial Highlights & Ratios
PEG Ratio2.23
Price to Book (P/B)28.44
Price to Sales (P/S)0.00
P/FCF Ratio27.68
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$14.00Price Target Upside75.00% 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 Moneynull
Quantasing Group Ltd. ADR Earnings Call Summary
Earnings Call Date:Jun 06, 2025
(Q3-2025)
| % Change Since: 43.11%|
Next Earnings Date:Sep 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements, including the integration and promising growth of the Letsvan Pop Toy business. However, there were notable declines in revenue from online learning and enterprise services, reflecting the strategic shift from traffic-driven to product-driven models.Q3-2025 Updates
Positive Updates
Revenue Achievement
QuantaSing achieved a revenue of RMB 570.7 million, marking a strategic shift from traffic-driven to product-driven business models.
Successful Integration of Letsvan
Completed the consolidation of Letsvan on March 31, positioning QuantaSing at the forefront of the high-growth Pop Toy market.
Calligraphy Program Success
The calligraphy program achieved a repeat purchase rate exceeding 55% and successfully delivered an innovative combination of online learning and offline graduation trips with a 100% satisfaction rate.
Pop Toy Market Expansion
The Pop Toy market is expected to grow at a CAGR of 5.1% to reach RMB 1,993.7 billion by 2028, with Letsvan playing a key role in this market.
Promising IP Development
Letsvan's IP 'WAKUKU' achieved significant market traction, with record-breaking sales and strong online engagement.
Negative Updates
Revenue Decline in Online Learning Services
Individual online learning services generated revenues of RMB 467.2 million, a 39.6% decrease year-over-year, reflecting a deliberate approach to strategic transformation.
Enterprise Services Revenue Decline
Revenues from enterprise services were RMB 48.1 million, a decline of 26.1% from a year ago, mainly due to fewer marketing services for enterprise customers.
Gross Billings Decline
Gross billings from individual online learning services were RMB 515.6 million, representing a decline of 47.5% year-over-year.
Company Guidance
During the third quarter of fiscal year 2025, QuantaSing achieved a revenue of RMB 570.7 million, marking a 39.6% decrease year-over-year, as the company transitions from traffic-driven to high-quality, product-driven growth. The revenue breakdown includes RMB 467.2 million from individual online learning services, RMB 48.1 million from enterprise services, RMB 48.7 million from consumer business, and RMB 6.7 million from others. The company completed the consolidation of Letsvan on March 31, reflecting only on the balance sheet, with profit consolidation starting April 1. QuantaSing's financial literacy program expanded with three major anti-fraud education initiatives, while its senior-focused recreation and leisure classes, particularly the calligraphy program, achieved a repeat purchase rate of over 55%. The company also launched its study tour business across 16 cities, delivering over 60 sessions. QuantaSing's entry into the high-growth Pop Toy market is marked by its acquisition of Letsvan, leveraging Letsvan's IP development capabilities and QuantaSing's marketing strengths, with significant success seen in the WAKUKU series. The company's net income for the quarter was RMB 41.1 million, with a gross margin of 83.1%.Quantasing Group Ltd. ADR Financial Statement Overview
Summary
Quantasing Group Ltd. ADR demonstrates a solid financial footing with strong profitability and efficient cash flow management. The company's improved revenue and profit margins, coupled with a low debt burden and robust cash flows, position it favorably in the education sector. Despite a substantial liabilities-to-assets ratio, the company's strong equity position mitigates potential risks.Income Statement
Quantasing Group Ltd. ADR has shown a strong financial performance in the latest year with notable improvements in profitability. The gross profit margin is high at 85.5%, indicating efficient cost management. The net profit margin improved significantly to 10.2% from a negative position the previous year, showing a turnaround in profitability. Revenue growth rate is robust at 23.2%, indicating strong demand for the company's offerings. The EBIT and EBITDA margins also improved to 9.9% and 10.4%, respectively, from negative margins, highlighting operational efficiency.85
Very Positive
Balance Sheet
The balance sheet of Quantasing Group Ltd. ADR highlights a solid financial position with a debt-to-equity ratio of 0.13, suggesting low leverage and reduced financial risk. Return on Equity (ROE) is strong at 74.7%, reflecting effective use of equity to generate profits. The equity ratio stands at 36.2%, indicating a stable capital structure with a good proportion of assets funded by equity. However, attention should be given to the significant liabilities relative to total assets.78
Positive
Cash Flow
Cash flow analysis shows a healthy position for Quantasing Group Ltd. ADR with a substantial increase in free cash flow, which grew by 21.4%. The operating cash flow to net income ratio stands at 0.73, indicating strong cash generation relative to earnings. The free cash flow to net income ratio is high at 0.72, reflecting effective conversion of profits into cash. This reflects the company's ability to fund operations and investments without relying heavily on external financing.82
Very Positive
| Breakdown | TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|
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
Positive
8.00
Price Trends
7.52
Positive
5.32
Positive
3.94
Positive
Market Momentum
0.69
Positive
52.27
Neutral
9.68
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QSG, the sentiment is Positive. The current price of 8 is below the 20-day moving average (MA) of 9.37, above the 50-day MA of 7.52, and above the 200-day MA of 3.94, indicating a bullish trend. The MACD of 0.69 indicates Positive momentum. The RSI at 52.27 is Neutral, neither overbought nor oversold. The STOCH value of 9.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (71)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $409.69M | 7.14 | 82.82% | ― | -14.74% | 90.91% | |
76 Outperform | $342.46M | 4.45 | 8.67% | ― | -7.36% | ― | |
75 Outperform | $124.94M | 9.20 | 11.29% | 3.50% | -9.70% | -30.98% | |
71 Outperform | ¥255.65B | 12.95 | 8.49% | 3.09% | 6.31% | 12.94% | |
70 Outperform | $75.56M | 1.85 | 57.64% | ― | -8.25% | -46.70% | |
48 Neutral | $193.36M | ― | 180.24% | ― | 85.68% | 50.06% | |
44 Neutral | $136.31M | ― | -108.11% | ― | -3.31% | 61.14% |
* Industrials Sector Average
Performance Comparison
QSG
Quantasing Group Ltd. ADR
9.45
7.91
513.64%
COE
China Online Education Group
33.00
22.12
203.31%
STG
Sunlands Online Education Group
5.72
-2.13
-27.13%
SKIL
Skillsoft
15.97
2.52
18.74%
VSTA
Vasta Platform
4.27
1.22
40.00%
IH
iHuman
2.50
0.79
46.20%
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.