BEIJING, April 3, 2025 /PRNewswire/ -- TAL Education Group ("TAL" or the "Company") (NYSE: TAL), a smart learning solutions provider in China, today announced that it will release its unaudited financial results for the fourth quarter and fiscal year 2025 ended February 28, 2025, before the market opens on Thursday, April 24, 2025. The Company will host a corresponding conference call and live webcast at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing Time) on Thursday, April 24, 2025. Please note that you w ...

Investment Rating - The report maintains a "Buy" rating for the company with a target price expected to yield over 20% relative return within the next six months [5][11]. Core Insights - The introduction of the "随时问" APP, which integrates DeepSeek's R1 intelligent reasoning, aims to revolutionize the educational landscape by providing a Socratic-style learning experience for students [1][4]. - The combination of DeepSeek's advanced AI capabilities with the company's extensive educational resources is expected to enhance personalized learning and tutoring services significantly [2][3]. - The report highlights three key technological advancements of the "随时问" APP: over 250 million minutes of self-developed instructional videos, high-accuracy "九章识题" technology for problem recognition, and intelligent adaptive answering capabilities [2][3]. Industry Perspective - The integration of AI tools like DeepSeek is seen as a crucial step for educational companies to enhance customer acquisition, service, and engagement, potentially leading to rapid market penetration [5][10]. - The report suggests that the current educational landscape is conducive to restructuring, with reduced competition among leading firms and opportunities for significant market share growth [10]. - The free access to the "随时问" APP is viewed as a strategic move for low-cost customer acquisition and data accumulation, which is vital for long-term growth [10]. Financial Projections - The company is projected to achieve revenues of $2.4 billion, $3.8 billion, and $6.1 billion for FY25, FY26, and FY27 respectively, with corresponding Non-GAAP net profits of $210 million, $320 million, and $480 million [11]. - The expected earnings per share (EPS) are forecasted to be $0.30, $0.50, and $0.80 for the same fiscal years, with price-to-earnings (PE) ratios of 42x, 28x, and 18x [11].

海外公司报告 | 公司动态研究 好未来（TAL） 证券研究报告 拥抱 DeepSeek 突破成长边界，有望重构教育格局 及估值体系 学而思正式发布接入 DeepSeek 的全新"随时问"APP 该产品深度融合 DeepSeek R1 智能推理，依托学而思 22 年教研沉淀，现面 向全国中小学生免费开放，提供苏格拉底式启发学习模式，支持题目分步 解析、无限追问和智能错题管理，助力构建科学学习体系。 学而思专业内容×强大模型，点亮三大"黑科技" 随时问 APP 全方位拥抱 DeepSeek，一方面会直接接入 DeepSeek R1，为用 户提供深度思考模式下的问答功能；另一方面，DeepSeek 的 V3 版本已成 为学而思九章大模型的基座之一，学而思加入大量教育行业专有数据进行 二次训练，并在此基础上开发学习场景的产品功能。 DeepSeek 大模型的优势在于强大的个性输出和深度思考能力，而学而思的 优势在于多年的教育经验和丰富的教学资源，两者的结合能够让 AI 答疑和 辅导的个性化水平迈上新台阶。随时问 APP 针对中小学学习场景实现了深 度优化，目前具备三大"黑科技"： 首先，超过 2.5 亿分钟自研讲解视 ...

Investment Rating - The report assigns a "Buy" rating to the company with a target price of $17.50, indicating a potential upside of 24.80% from the current price [2][5]. Core Insights - The company has demonstrated better-than-expected performance, particularly in its smart learning machine business, which is experiencing rapid growth [5]. - The company reported a revenue of $606 million for the third quarter of FY25, representing a year-on-year increase of 62.4%, surpassing market expectations of 39% [5]. - The smart learning machine sales reached $1.6 billion in FY25Q3, marking an 88% year-on-year growth, with a sales volume of 356,000 units, up 65% [5]. - The company is expanding its offline educational training points, with an estimated 430-450 locations, maintaining strong retention and utilization rates [5]. Financial Summary - Total revenue for FY24 is projected at $1.49 billion, a 46.15% increase from the previous year, with a forecast of $2.19 billion for FY25 [3][5]. - Non-GAAP net profit is expected to turn positive in FY25, reaching $128.7 million, with further growth to $250.5 million in FY26 and $350.6 million in FY27 [3][5]. - The company maintains a strong cash position with $3.8 billion in cash and short-term investments, and no bank debt [5]. Business Growth - The company is focusing on enhancing its educational resources and management capabilities, particularly in the smart learning machine sector, which is expected to continue its rapid development [5]. - The introduction of the Xbook smart learning machine has received positive feedback from parents and is positioned to disrupt traditional learning machine manufacturers [5].

Group 1 - TAL Education Group (TAL) has reached a significant support level and is considered a good pick for investors from a technical perspective due to a "golden cross" formation [1] - The golden cross is characterized by the 50-day simple moving average breaking above the 200-day moving average, indicating a potential bullish breakout [1] - TAL has experienced a rally of 34% over the past four weeks, suggesting a strong upward momentum [3] Group 2 - The golden cross consists of three key stages: a downtrend that bottoms out, a crossover of the shorter moving average above the longer moving average, and a subsequent upward price movement [2] - The current Zacks Rank for TAL is 3 (Hold), indicating a potential for breakout given the positive earnings outlook for the current quarter [3] - No earnings estimates for TAL have decreased in the past two months, with one revision higher, and the Zacks Consensus Estimate has also increased [3] Group 3 - Investors are encouraged to consider adding TAL to their watchlist due to the important technical indicator and the positive movement in earnings estimates [4]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company has shown strong revenue growth, with FY2025 Q3 net revenue reaching $606 million, a year-on-year increase of 62.4%. The focus on non-academic training has driven this growth, alongside the introduction of new smart hardware products that have received positive market feedback [5][6]. - The company is actively expanding its business, with sales expenses increasing by 85.6% to $226.4 million in FY2025 Q3, reflecting a sales expense ratio of 37.3%. Management expenses have seen a slight increase of 0.8% to $111.5 million, indicating improved operational leverage as revenue scales up [8][11]. - The company maintains a strong cash flow position, with operating cash flow of $378 million in FY2025 Q3 and cash reserves of approximately $3.836 billion, which supports future growth initiatives [11][12]. - The company is expected to continue its high growth trajectory, with projected revenues of $2.284 billion and $3.084 billion for FY2025 and FY2026, respectively, representing year-on-year growth rates of 53.3% and 35.0% [13]. Financial Summary - For FY2024, the company reported revenues of $1.49 billion, with a projected increase to $2.284 billion in FY2025 and $3.084 billion in FY2026, reflecting growth rates of 46.2%, 53.3%, and 35.0% respectively [4]. - Non-GAAP net profit is projected to grow from $85.3 million in FY2024 to $214.8 million in FY2025 and $312.9 million in FY2026, with respective growth rates of 151.7% and 45.7% [4]. - The gross margin is expected to remain stable around 54%, with Non-GAAP net profit margin improving from 5.7% in FY2024 to 10.1% in FY2026 [4].

Investment Rating - The report maintains a "Buy" rating for TAL Education Group, expecting a relative return of over 20% within the next six months [6]. Core Insights - The company reported a net income of $610 million for FY25Q3, representing a year-over-year increase of 62.4%. The operating profit (OP) was -$17 million, up 45.8%, while the Non-GAAP OP was -$2 million, reflecting an 81.1% increase. The net profit attributable to shareholders was $23 million, marking a turnaround from losses, and the Non-GAAP net profit was $39 million, also showing a recovery [1]. - TAL's AI learning devices continue to be a fast-growing segment, receiving positive user feedback and market recognition. The company aims to enhance its capabilities in learning services and content solutions [1]. - The introduction of high-quality online and offline learning programs, along with the new learning device Xbook, has been pivotal in driving business growth. The Xbook is designed to meet practical learning needs and has received awards for its technological innovation [2]. - The expansion of the learning device product line, including upgrades to XPAT and the launch of Xbook, aims to cater to personalized learning needs. The Xbook features AI-driven functionalities such as smart scoring and personalized recommendations [3]. - The company is deepening its investment in the K-12 education sector by enhancing teacher training systems and technology-driven solutions, which improves product quality and local service. The use of tablets in small class settings promotes personalized teaching and student engagement [4]. - Based on the performance from FY25Q1 to Q3, the revenue forecasts have been raised, with expected revenues of $2.4 billion, $3.8 billion, and $6.1 billion for FY25-27, respectively. Non-GAAP net profits are projected to be $210 million, $320 million, and $480 million for the same periods [5].

Investment Rating - The investment rating for the company is "Buy" with a maintained rating for the next six months [6]. Core Insights - The company reported a net income of $610 million for FY25Q3, representing a year-over-year increase of 62.4%, while the operating profit was -$17 million, up 45.8% year-over-year. Non-GAAP operating profit was -$2 million, showing an increase of 81.1% year-over-year [1]. - The company has achieved healthy year-over-year revenue growth, with AI learning devices being one of the fastest-growing segments, receiving positive user feedback and market recognition [1]. - The company continues to enhance its product capabilities in learning services and content solutions [1]. Revenue and Profit Forecast - Based on the company's performance from FY25Q1 to Q3, revenue forecasts for FY25-27 have been raised to $2.4 billion, $3.8 billion, and $6.1 billion, respectively. Non-GAAP net income forecasts have also been increased to $210 million, $320 million, and $480 million for the same periods [5]. Product Innovation - The company is driving business growth through the launch of high-quality online and offline learning programs, as well as new learning devices like Xbook, which aims to provide valuable tools for practical learning needs [2]. - The XPAD received two awards at the 2025 Consumer Electronics Show, reflecting the company's efforts in technological innovation and user experience enhancement [2]. Product Line Expansion - The company is expanding its learning device product line, including upgrades to XPAT and the launch of Xbook, which features AI-driven functionalities such as smart scoring and personalized recommendations to enhance the learning experience [3]. Investment in K-12 Education - The company is committed to improving product quality and services for local users by strengthening teacher training systems and technology-driven solutions, while also managing its learning center network cautiously to meet customer needs [4].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company reported a significant revenue increase of 62.4% year-over-year for FY2025Q3, reaching $606.4 million, surpassing the expected growth of 44.5% [5] - Non-GAAP net profit for the same period was $38.58 million, with a net profit margin of 6.36%, reflecting a year-over-year increase of 6.88 percentage points [5] - The company has adjusted its profit forecasts for FY2025-2027, now expecting Non-GAAP net profits of $192 million, $301 million, and $394 million respectively, with corresponding EPS of $0.30, $0.47, and $0.62 [5] Summary by Sections Financial Performance - For FY2025Q3, the company achieved a revenue of $606.4 million, a 62.4% increase year-over-year, and a significant improvement in Non-GAAP operating profit, which was a loss of $1.92 million, narrowing from previous losses [5] - Deferred revenue as of November 30, 2024, was $826 million, up 62.6% year-over-year [5] - The company’s revenue projections for FY2025-2027 have been revised upwards due to better-than-expected performance [5] Learning Services - The company is expanding its offline learning centers, with a net increase of 52 centers in FY2025Q2, totaling 436 centers by the end of January 2025 [6] - The integration of high-tech interactive technologies into classrooms is enhancing product capabilities [6] Smart Hardware - The launch of the new learning device, Xbook, priced under 4000 yuan, has received positive feedback from parents, contributing to a 74% year-over-year increase in online sales [7] - The company showcased its innovative learning device at the CES 2025, winning the "TWICE Picks" award, highlighting its recognition in the AI+education sector [7]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a significant revenue increase driven by the Double 11 sales season, achieving $606.4 million in revenue for FY2025Q3, a year-on-year growth of 62.4%, surpassing the expected 44.5% [5] - Non-GAAP net profit for the same period was $38.58 million, with a net profit margin of 6.36%, reflecting a year-on-year increase of 6.88 percentage points [5] - The company has adjusted its profit forecasts upwards for FY2025-2027, now expecting Non-GAAP net profits of $192 million, $301 million, and $394 million respectively, with corresponding EPS of $0.30, $0.47, and $0.62 [5] Summary by Sections Financial Performance - For FY2025Q3, the company achieved a revenue of $606.4 million, a 62.4% increase year-on-year, and a significant improvement in profitability metrics [5] - Deferred revenue as of November 30, 2024, was $826 million, reflecting a 62.6% year-on-year growth [5] - The company’s financial projections for FY2025-2027 have been revised upwards, indicating strong growth expectations [5][10] Learning Services - The company is expanding its offline learning centers in existing cities, with a net increase of 52 centers in FY2025Q2, totaling 436 centers by the end of January 2025 [6] - The integration of high-tech interactive technologies into classrooms is enhancing product capabilities, with a focus on immersive activities [6] Smart Hardware - The launch of the Xbook learning machine in August 2024 has been well-received, with sales reaching approximately $2 billion in FY2025Q3, a 74% year-on-year increase [7] - The learning machine sales accounted for $1.6 billion, marking an 88% increase, with a total of 356,000 units sold, a 65% year-on-year growth [7] - The company received recognition at the global CES exhibition for its innovative AI+education solutions [7]