Argus Research Initiates Equity Research Report Coverage on QuantaSing Group Ltd (NasdaqGM: QSG)

Rhea-AI Summary

QuantaSing Group Ltd (NasdaqGM: QSG) - Argus Research Launches Equity Research Report Coverage, Highlighting Strong Positioning in the Online Adult Education Market in China and Projecting a Fair Value Estimate of $9 per ADS

Positive

• QuantaSing is well positioned to capitalize on the growing interest in lifelong learning in China
• The company's focus on maintaining profitability while also launching new e-commerce businesses with strong growth potential is highlighted
• QuantaSing's acquisition of Kelly's Education is expected to provide entry to global markets, including Hong Kong
• The potential to boost adjusted net margins from 10% to approximately 20% over time is projected
• Based on EV/revenue analysis, a fair value estimate for QSG of $9 per ADS has been determined

Negative

• None.

NEW YORK, Nov. 15, 2023 /PRNewswire/ -- Argus Research, an independent investment research firm, has launched Equity Research Report coverage on QuantaSing Group Ltd (NasdaqGM: QSG)

Click Here to view full Argus Equity Research Report.

COMPANY HIGHLIGHTS: Excerpts (as conveyed by Argus Analyst Steve Silver) include:

QSG: A Leading Provider of Online Adult Education Services in China

• QuantaSing is well positioned to capitalize on the growing interest in lifelong learning in China, where the online adult education market is still relatively undeveloped.
• We like the company's focus on maintaining profitability while also launching new e-commerce businesses with strong growth potential.
• As of June 30, 2023, QuantaSing had more than 94 million registered users, up 60% from the prior year and up more than 400% in just two years.
• QuantaSing recently acquired Kelly's Education, which offers affordable online English classes for children, and which we expect to provide entry to global markets, including Hong Kong.
• We believe that QuantaSing has the ability to boost adjusted net margins from a current 10% to approximately 20% over time.
• Based on our EV/revenue analysis, we arrive at a fair value estimate for QSG of $9 per ADS.

INVESTMENT THESIS: Click Here to view full Argus Equity Research Report and Investment Thesis.

About QuantaSing Group Ltd (NasdaqGM: QSG)                   
https://ir.quantasing.com/

Founded in 2019, Beijing-based QuantaSing Group Ltd. provides online learning services in the People's Republic of China. The company recently entered global markets through the acquisition of Kelly's Education, based in Hong Kong. The company's offerings include online courses in financial literacy, short-video production, and personal well-being, among others. QuantaSing also provides marketing, enterprise talent management, and e-commerce services to business customers.

For more information please contact:

Leah Guo, Investor Relations
QuantaSing Group Limited
Email: ir@quantasing.com
Tel: +86 (10) 6493-7857

Robin Yang, Partner
ICR, LLC
Email: QuantaSing.IR@icrinc.com
Tel: +1 (212) 537-0429

Public Relations
Brad Burgess, Senior Vice President
ICR, LLC
Email: Brad.Burgess@icrinc.com

About Argus Research Corp. 

Headquartered in NYC, Argus Research (www.argusresearch.com) is a leading independent equity research firm (est. 1934)  ̶  providing fundamental and quantitative research coverage on more than 1,600 companies across all 11 sectors of the S&P 500, as well as macroeconomic and equity market forecasts, thematic research, model portfolios and IPO research.  In addition, Argus has recently committed to providing a sponsored research solution for small & mid-cap companies seeking coverage.  Argus's Equity Research & earnings estimates are available on major research / earnings estimate aggregator platforms, including Bloomberg, Thomson Reuters, Factset and S&P Global.

For more Information please contact:

Darrell Stone
646-747-5438
dstone@argusresearch.com   

Argus Research Co. has received a flat fee from the company discussed in this report as part of a Sponsored Research agreement between Argus and the company. No part of Argus Research's compensation is directly or indirectly related to the content of this assessment or to other opinions expressed in this report. Please refer to the full Argus report and the disclaimer for complete disclosures.

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SOURCE Argus Research

FAQ

What is the focus of QuantaSing Group Ltd (NasdaqGM: QSG) in China?

QuantaSing is a leading provider of online adult education services in China, capitalizing on the growing interest in lifelong learning in the relatively undeveloped online adult education market.

What was the growth in the number of registered users for QuantaSing Group Ltd (NasdaqGM: QSG) as of June 30, 2023?

As of June 30, 2023, QuantaSing had more than 94 million registered users, up 60% from the prior year and up more than 400% in just two years.

What acquisition did QuantaSing Group Ltd (NasdaqGM: QSG) recently make and what is the expected impact?

QuantaSing recently acquired Kelly's Education, offering affordable online English classes for children, which is expected to provide entry to global markets, including Hong Kong.

What is the projected fair value estimate for QuantaSing Group Ltd (NasdaqGM: QSG)?

Based on EV/revenue analysis, a fair value estimate for QSG of $9 per ADS has been determined.