Wednesday, June 05, 2024
QuantaSing is a leading online service provider in China dedicated to improving people’s quality of life and well-being by providing lifelong personal learning and development opportunities. The Company is the largest service provider in China’s online adult learning market and China’s adult personal interest learning market in terms of revenue, according to a report by Frost & Sullivan based on data from 2022. By leveraging its proprietary tools and technology, QuantaSing offers easy-to-understand, affordable, and accessible online courses to adult learners under a variety of brands, including QiNiu, JiangZhen and QianChi, empowering users to pursue personal development. Leveraging its extensive experience in individual online learning services, the Company has also expanded its services to corporate clients including, among others, marketing services and enterprise talent management services.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
A shift in business strategy. We believe the company plans to invest more heavily into its new growth verticals, such as e-commerce (private label Chinese liquor sales), overseas learning markets, and in-person teaching locations. This is a shift in its priority from its online adult learning services business, which appears to be maturing. As such, we are adjusting our revenue and cash flow outlook for the company.
Fiscal Q3 preview. We are lowering our fiscal Q3 revenue forecast from RMB930.0 million to RMB860.0 million because of anticipated slower revenue growth in its online learning business. Adj. EBITDA is expected to be slightly better than our previous estimate.
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