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Quantasing Group Ltd. ADR (QSG)
:QSG
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Quantasing Group Ltd. ADR
(NASDAQ:QSG)
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Rating:68Neutral
Price Target:
$8.50
▲(19.89% Upside)
Quantasing Group Ltd. ADR has shown strong financial performance and attractive valuation metrics, which are the primary strengths. However, bearish technical indicators and challenges highlighted in the earnings call, such as revenue declines in key segments, weigh on the overall score.
Positive Factors
Strong Profitability
The improvement in net profit margin from a negative position to 10.2% indicates enhanced operational efficiency and cost management, which supports long-term profitability.
Low Leverage
A low debt-to-equity ratio suggests that the company is not heavily reliant on debt financing, which reduces financial risk and enhances financial stability over the long term.
Successful Market Expansion
The strategic acquisition and integration of Letsvan into the Pop Toy market positions the company for growth in a high-potential sector, leveraging IP development and marketing strengths.
Negative Factors
Revenue Decline
A significant year-over-year revenue decline indicates challenges in adapting to a new business model, potentially impacting financial performance if not addressed.
Decline in Online Learning Services
The decline in online learning services revenue suggests difficulties in maintaining market share or adapting to consumer demands, which could affect future growth.
Enterprise Services Revenue Decline
The decline in enterprise services revenue highlights potential challenges in attracting and retaining business clients, which may impact long-term revenue streams.
Quantasing Group Ltd. ADR (QSG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$366.68M
Dividend YieldN/A
Average Volume (3M)387.69K
Price to Earnings (P/E)7.9
Beta (1Y)0.57
Revenue Growth-28.03%
EPS Growth-5.31%
CountryUS
Employees827
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.09
Shares Outstanding34,493,320
10 Day Avg. Volume197,636
30 Day Avg. Volume387,688
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.26
Price to Sales (P/S)0.17
P/FCF Ratio2.33
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue0.14
Enterprise Value/Gross Profit0.16
Enterprise Value/Ebitda-1.20
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Quantasing Group Ltd. ADR Business Overview & Revenue Model
Company DescriptionQuantasing Group Ltd. ADR (QSG) is a technology-driven company focused on providing advanced data analytics and artificial intelligence solutions across various sectors, including finance, healthcare, and logistics. The company specializes in developing innovative software platforms that enable businesses to harness data for improved decision-making, operational efficiency, and predictive insights. QSG's core offerings include machine learning models, data visualization tools, and integrated analytics systems tailored to meet the specific needs of its clients.
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:Sep 17, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Dec 10, 2025
Earnings Call Sentiment Positive
The call reflects a positive sentiment with strong revenue and profit growth driven by the Pop Toy business, successful launch of new IPs, and strategic restructuring efforts. Despite some declines in other segments and a reduced gross margin, the focus on the Pop Toy sector and international expansion presents significant growth opportunities.Q4-2025 Updates
Positive Updates
Strong Revenue and Profit Growth
Total revenue reached RMB 617.8 million with a net income of RMB 108 million, achieving a net profit margin of 17.5%. Pop Toy business contributed RMB 65.8 million to the revenue.
Successful Launch of New IPs
The new IP 'SIINONO' launched in July 2025 sold 10,000 units in 10 minutes and achieved approximately 300,000 units sales to date. The 'WAKUKU' series achieved over 1 million unit sales.
Strategic Business Restructuring
QuantaSing announced a strategic decision to divest its non-Pop Toy business to focus exclusively on the high-growth Pop Toy market.
Expansion in International Markets
Established e-commerce sites in North America and Southeast Asia, with pop-up stores and wholesale networks in over 20 countries.
Growth in Online and Offline Channels
Online GMV exceeded RMB 18 million in August, and a widespread wholesale network of over 10,000 retail stores has been established.
Negative Updates
Decline in Online Learning and Enterprise Services
Revenues from individual online learning services decreased to RMB 456.9 million from RMB 906.7 million, and enterprise services revenue was RMB 35.7 million compared to RMB 56.6 million a year ago.
Reduced Gross Margin
Gross margin decreased to 75.7% from 85.9% in the same period last year, reflecting the strategic shift towards product-focused offerings.
Company Guidance
During the QuantaSing earnings call for Q4 and fiscal year 2025, significant guidance was provided, highlighting a strategic shift towards their high-growth Pop Toy business. The company reported total revenue of RMB 617.8 million, with the Pop Toy segment contributing RMB 65.8 million. Notably, QuantaSing plans to divest its non-Pop Toy business, focusing exclusively on the Pop Toy market, which is driven by strong cultural trends among young consumers. As of June 30, 2025, QuantaSing held over RMB 1 billion in cash and short-term investments, providing a robust foundation for this transition. The company expects Pop Toy revenues to reach between RMB 100 million and RMB 110 million in Q1 fiscal 2026 and between RMB 750 million and RMB 800 million for the full fiscal year 2026. The strategic focus will be on expanding their IP portfolio, enhancing marketing and channel capabilities, and international expansion, particularly in markets like North America and Southeast Asia.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 2023 | Dec 2022 | Dec 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 | -320.10M |
| 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
7.09
Price Trends
8.34
Negative
8.78
Negative
6.54
Positive
Market Momentum
-0.33
Negative
43.57
Neutral
27.78
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 7.09 is below the 20-day moving average (MA) of 7.36, below the 50-day MA of 8.34, and above the 200-day MA of 6.54, indicating a neutral trend. The MACD of -0.33 indicates Negative momentum. The RSI at 43.57 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $397.80M | 5.17 | ― | ― | -7.36% | ― | |
| ― | $583.75M | 30.63 | 10.20% | ― | 5.50% | 338.59% | |
| ― | $366.68M | 7.94 | 54.10% | ― | -28.03% | -5.31% | |
| ― | $142.74M | 9.81 | 11.71% | 3.01% | -8.09% | -15.28% | |
| ― | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
| ― | $586.21M | 40.39 | 8.27% | ― | 14.53% | 75.66% | |
| ― | $101.99M | -0.36 | -103.91% | ― | -25.87% | 57.21% |
* Consumer Defensive Sector Average
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Quantasing Group Ltd. ADR
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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.