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1. Company Snapshot

1.a. Company Description

QuantaSing 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.

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1.b. Last Insights on QSG

QuantaSing Group Ltd's recent performance has been negatively impacted by the changes in its board composition, which may have created uncertainty among investors. The lack of significant updates on its business operations or new products has also contributed to the stagnant performance. Additionally, there have been no recent earnings releases or major acquisitions to drive growth. The company's failure to provide a clear direction or strategy has led to a Neutral rating from Deutsche Bank, citing concerns over its ability to execute on its business plan.

1.c. Company Highlights

2. QuantaSing's Q4 Earnings: Strategic Shift and Financial Highlights

QuantaSing reported Q4 2025 revenue of RMB617.8 million, with Pop Toy revenue at RMB65.8 million, representing 10.6% of total revenue. The net income was RMB108 million, resulting in a net margin of 17.5%. Earnings per share (EPS) was 0.09, below estimates of 0.18. The company's cash reserves stood at RMB1.04 billion, supporting its strategic transition.

Publication Date: Sep -20

📋 Highlights
  • Strategic Restructuring:: QuantaSing is divesting non-Pop Toy operations to focus exclusively on Pop Toy, which generated 10.6% of Q4 revenue (RMB 65.8M) despite contributing 24% of cash reserves (RMB 1.04B total).
  • Financial Performance:: Q4 revenue totaled RMB 617.8M with a 17.5% net margin (RMB 108M net income), driven by Pop Toy’s 75.7% gross margin and 10.6% revenue share.
  • IP & Market Growth:: Pop Toy’s IP portfolio (e.g., WAKUKU, SIINONO) achieved 1M blind box sales in Q4, supported by partnerships with cultural events and 10,000+ retail stores globally.
  • Future Guidance:: FY2026 Pop Toy revenue targets RMB 750-800M, with international expansion plans in North America and Southeast Asia, plus 3–5 flagship stores by year-end.

Business Restructuring and Strategic Focus

The company announced plans to divest non-Pop Toy businesses, focusing exclusively on its high-growth Pop Toy segment. This strategic shift is aimed at consolidating resources, strengthening IP innovation, and delivering shareholder value. Pop Toy's success is driven by emotional storytelling and unique IPs like WAKUKU, ZIYULI, and SIINONO, with recent blind box sales exceeding 1 million units. As Peng Li mentioned, the company is confident in its ability to scale the Pop Toy business, with guidance for FY2026 revenue of RMB750–800 million.

Financial Performance and Valuation

The financials showed a gross margin of 75.7% and sales and marketing expenses reduced to 47.6% of revenue. The company's return on equity (ROE) is 71.41%, indicating strong profitability. With a current P/E Ratio of 8.66 and P/S Ratio of 1.24, the market is pricing in moderate growth expectations. The EV/EBITDA ratio of 5.58 suggests a reasonable valuation relative to its earnings before interest, taxes, depreciation, and amortization.

Future Plans and Projections

QuantaSing plans to expand its Pop Toy business through partnerships with cultural events and lifestyle brands, as well as offline growth via over 10,000 retail stores and pop-up activations. The company aims to open 3–5 flagship stores by year-end and has launched e-commerce platforms in North America and Southeast Asia. With a strong pipeline and confidence in its IP development, QuantaSing is poised for future growth.

3. NewsRoom

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QuantaSing Group Limited to Begin Trading Under New Name "Here Group Limited" and New Ticker Symbol "HERE" Effective November 11, 2025

Nov -10

Source: globenewswire.com

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QuantaSing Group Limited Filed Fiscal Year 2025 Annual Report on Form 20-F

Oct -31

Source: globenewswire.com

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QuantaSing Announces Business Restructuring, Name Change to Here Group Limited and Extraordinary General Meeting

Sep -30

Source: globenewswire.com

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QuantaSing: Goodbye Silver Economy, Hello Pop Toys

Sep -22

Source: seekingalpha.com

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QuantaSing Group Limited (QSG) Q4 2025 Earnings Call Transcript

Sep -17

Source: seekingalpha.com

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QuantaSing Announces Unaudited Financial Results for the Fourth Quarter of Fiscal Year 2025 and Full Fiscal Year 2025

Sep -17

Source: globenewswire.com

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QuantaSing: Is The Next Pop Mart?

Sep -16

Source: seekingalpha.com

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QuantaSing to Report Fourth Fiscal Quarter and Full Fiscal Year 2025 Financial Results on September 17, 2025

Sep -11

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.09%)

6. Segments

Individual Online Learning Services - Financial Literacy Courses

Expected Growth: 12%

QuantaSing Group Ltd's Individual Online Learning Services - Financial Literacy Courses growth is driven by increasing demand for digital education, rising financial awareness, and growing need for upskilling in a rapidly changing job market. Additionally, the convenience and accessibility of online learning platforms, coupled with the company's expertise in financial literacy, contribute to its 12% growth.

Individual Online Learning Services - Other Personal Interest Courses

Expected Growth: 10%

QuantaSing Group Ltd's Individual Online Learning Services - Other Personal Interest Courses segment growth is driven by increasing demand for online learning, rising disposable income, and growing popularity of personal interest courses. Additionally, the company's strong brand recognition, user-friendly platform, and strategic partnerships contribute to its 10% growth.

Enterprise Services

Expected Growth: 18%

QuantaSing Group Ltd's Enterprise Services segment growth of 18% is driven by increasing demand for digital transformation, cloud adoption, and cybersecurity solutions. Strong partnerships with leading technology vendors, expansion into new markets, and a skilled workforce have also contributed to this growth. Additionally, the segment has benefited from the rising need for data analytics, artificial intelligence, and IoT integration, further fueling its rapid expansion.

Others

Expected Growth: 8%

QuantaSing Group Ltd's 8% growth is driven by increasing demand for its AI-powered data analytics solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, cost optimization, and operational efficiency have contributed to its growth momentum.

7. Detailed Products

Data Centre Solutions

QuantaSing Group Ltd provides data centre solutions that offer a comprehensive suite of services, including data centre design, build, and operation, to help businesses optimize their IT infrastructure and improve efficiency.

Cloud Services

QuantaSing Group Ltd offers a range of cloud services, including infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS), to help businesses reduce costs and improve agility.

Cybersecurity Solutions

QuantaSing Group Ltd provides cybersecurity solutions that offer advanced threat detection, incident response, and security consulting services to help businesses protect themselves from cyber threats.

Artificial Intelligence and Machine Learning

QuantaSing Group Ltd offers AI and ML solutions that help businesses automate processes, gain insights, and improve decision-making, using machine learning algorithms and natural language processing.

Internet of Things (IoT) Solutions

QuantaSing Group Ltd provides IoT solutions that enable businesses to connect, monitor, and analyze data from devices, sensors, and equipment, to improve operational efficiency and reduce costs.

5G and Edge Computing

QuantaSing Group Ltd offers 5G and edge computing solutions that enable low-latency, high-bandwidth connectivity, and real-time data processing, to support mission-critical applications.

8. QuantaSing Group Ltd's Porter Forces

Forces Ranking

Threat Of Substitutes

QuantaSing Group Ltd has a moderate threat of substitutes due to the availability of alternative products in the market.

Bargaining Power Of Customers

QuantaSing Group Ltd has a high bargaining power of customers due to the presence of large and established customers who can negotiate prices and terms.

Bargaining Power Of Suppliers

QuantaSing Group Ltd has a low bargaining power of suppliers due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

QuantaSing Group Ltd has a moderate threat of new entrants due to the presence of barriers to entry and the company's established market position.

Intensity Of Rivalry

QuantaSing Group Ltd operates in a highly competitive industry with many established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 29.57%
Debt Cost 3.95%
Equity Weight 70.43%
Equity Cost 7.25%
WACC 6.27%
Leverage 41.99%

11. Quality Control: QuantaSing Group Ltd passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.41$

Current Price

5.41$

Potential

-0.00%

Expected Cash-Flows