Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [5]. Core Insights - The company reported Q1 FY2026 revenue of $575 million, a year-over-year increase of 38.8%, slightly below Bloomberg consensus estimates of $579 million. Non-GAAP operating profit was $25 million, exceeding expectations of $12 million, while Non-GAAP net profit attributable to shareholders was $42 million, surpassing the forecast of $31 million [2]. - The tutoring and online school segments are driving stable growth in learning service revenue, with a healthy class renewal rate of approximately 80%. However, growth is expected to gradually slow due to market saturation and a balanced supply-demand dynamic in the tutoring sector [3]. - The learning machine business is still in the investment phase, with sales growth reported at 70% year-over-year, totaling approximately 190,000 units sold. Despite a decrease in average selling price due to new product launches, the company is expanding its market penetration [3]. - The company achieved a significant improvement in profitability, with an operating profit margin of 2.5%, up 6.7 percentage points year-over-year. Gross margin was reported at 54.9%, reflecting operational efficiency and changes in business structure [4]. - The company has been aggressive in share buybacks, repurchasing $477 million worth of shares, which is about 12% of total trading volume during the period. A new buyback plan was approved for up to $600 million over the next 12 months [4]. Summary by Sections Performance Review - Q1 FY2026 revenue was $575 million, up 38.8% year-over-year, slightly below expectations. Non-GAAP operating profit was $25 million, and Non-GAAP net profit was $42 million, both exceeding forecasts [2]. Operational Analysis - The tutoring business is experiencing stable growth, with a class renewal rate of around 80%. The online school segment saw over 100% year-over-year growth in monthly active users [3]. - The learning machine segment reported a 70% increase in sales, with total sales revenue of approximately $8 million, despite a decrease in average selling price [3]. Profitability and Buyback - The company reported an operating profit margin of 2.5%, with a gross margin of 54.9%. The company has been active in share buybacks, repurchasing $477 million worth of shares [4]. Earnings Forecast and Valuation - The forecast for Non-GAAP net profit for FY2026 to FY2028 is $214 million, $330 million, and $462 million, respectively, with adjusted PE ratios of 31, 20, and 15 times [5].

Investment Rating - The report assigns a "Buy" rating to TAL Education (TAL US) with a target price of $13.30, indicating a potential upside of 21.6% from the current closing price of $10.94 [1][13]. Core Insights - The K12 education training business is showing robust performance, driven by strong demand for quality education services and sales of learning devices [2][6]. - The financial outlook is positive, with projected revenue growth of 46.2% in 2024, 51.0% in 2025, and a steady decline to 13.2% by 2028 [3][14]. - The company is expected to maintain a strong growth trajectory in its learning services, with an estimated growth rate exceeding 30% [6][7]. Financial Overview - Revenue projections for TAL Education are as follows: $1,490 million in 2024, $2,250 million in 2025, $2,881 million in 2026, $3,422 million in 2027, and $3,873 million in 2028, reflecting a consistent upward trend [3][14]. - Net profit is expected to rise from $85 million in 2025 to $512 million by 2028, with significant growth rates in the initial years [3][14]. - The report highlights a Non-GAAP net profit of $150 million in 2025, increasing to $296 million in 2026, and $436 million in 2027 [3][14]. Performance Metrics - The report indicates a projected operating profit margin of over 7% for the fiscal year 2026, doubling from the previous year [6][7]. - The company’s earnings per share (EPS) are forecasted to grow from $0.14 in 2025 to $0.83 by 2028, demonstrating strong profitability potential [3][14]. - The price-to-earnings (P/E) ratio is expected to decrease from 78.2 in 2024 to 13.1 by 2028, indicating improving valuation as earnings grow [3][14]. Market Position - TAL Education is positioned favorably within the K12 education sector, with a strong market share in learning devices, achieving nearly 28% market share in sales [6][7]. - The company is expanding its product offerings, including AI learning devices aimed at enhancing educational experiences [6][7].

Core Insights - TAL Education Group (TAL.US) experienced a pre-market decline of over 2%, trading at $10.7 [1] - The company reported Q1 FY2026 earnings with a revenue increase of 38.8% year-over-year to $575 million, slightly below market expectations of $584.2 million [1] - Net profit for the quarter was $31.3 million, translating to earnings per share of $0.07, exceeding market expectations of $0.03 [1] - Deferred revenue grew approximately 50.8% year-over-year, showing a slowdown compared to the 56.7% growth rate in Q4 FY2025 [1] - Huatai Securities anticipates a slowdown in learning service revenue growth to around 25% year-over-year due to fewer spring class enrollments this year, attributed to an earlier Chinese New Year [1]

Core Insights - TAL Education Group reported a revenue of $580 million for Q1 of fiscal year 2026, marking a year-on-year growth of 38.8%, with a net profit of $31.28 million, up 174.4% from the previous year, leading to an 8.42% increase in stock price [1] Group 1: Business Performance - The revenue growth of 38.8% is the smallest increase in the last eight quarters, indicating a slowdown compared to previous periods [1] - Learning services account for over 60% of total revenue, with a significant recovery in offline learning centers, increasing by 58.9% to 526 centers across 40 domestic and 5 overseas cities [3] - The learning machine segment is a key growth driver, with active device usage reaching 1.1 million units by the end of the last fiscal year [4] Group 2: Learning Solutions - The learning content solutions segment saw a revenue increase of 63.1%, surpassing the 45.9% growth of learning services, indicating a shift in revenue composition [4] - The revenue from learning content solutions has grown from $170 million in FY2023 to $720 million in FY2025, reflecting its increasing importance [4] Group 3: Market Dynamics - The company has adopted a cautious expansion strategy for learning centers, focusing on enhancing existing locations rather than aggressive growth [5] - Marketing expenses have decreased due to a limited product launch window, which may impact the learning machine segment's growth [6] - Upcoming promotional events, such as the 618 sales peak, are expected to boost sales and revenue, with predictions of over 700,000 units sold in the online market during promotional periods [6]

Core Insights - The article presents the market capitalization rankings of the top 50 Chinese technology and internet companies as of August 1, 2025, highlighting significant shifts in rankings and valuations [1]. Group 1: Market Capitalization Rankings - TSMC leads the list with a market capitalization of $125.32 billion [3]. - Tencent Holdings ranks second with a market capitalization of $64.22 billion [3]. - Alibaba has moved up to the third position with a market capitalization of $28.77 billion, showing a notable increase from its previous rank of 12 [3]. Group 2: Notable Companies and Changes - Xiaomi Group is ranked fourth with a market capitalization of $17.57 billion [3]. - Pinduoduo follows closely in fifth place with a market capitalization of $16.11 billion [3]. - Meituan and NetEase are ranked sixth and seventh, with market capitalizations of $9.46 billion and $8.25 billion, respectively [3][4]. Group 3: Additional Rankings - Semiconductor Manufacturing International Corporation (SMIC) is in eighth place with a market capitalization of $5.23 billion [4]. - JD.com is ranked tenth with a market capitalization of $4.54 billion [4]. - Kuaishou and Tencent Music are ranked 11th and 12th, with market capitalizations of $4.17 billion and $3.25 billion, respectively [4]. Group 4: Lower Rankings - Companies ranked from 25 to 50 include Kingdee International at $0.83 billion and Yuyuan at $0.40 billion, indicating a diverse range of valuations among the lower-ranked firms [5][6].

Investment Rating - The report maintains a "Buy" rating for the company [5][4][12] Core Views - The company reported Q1FY26 revenue of $575 million, a year-over-year increase of 38.8%, slightly below Bloomberg's consensus estimate of 39.8% [1][5] - Non-GAAP operating profit for Q1 was $25.11 million, corresponding to an operating profit margin (OPM) of 4.4%, exceeding Bloomberg's consensus estimate by 2.3 percentage points [1][2] - The company announced a new stock repurchase plan, expecting to buy back up to $600 million of its common stock over the next 12 months [1][4] Summary by Sections Q1 Performance - Q1 learning service revenue is estimated at approximately $405 million, with a year-over-year growth of 40% in RMB terms [2] - The tutoring and online school business revenue is expected to grow by 46% and 50% year-over-year, respectively [2] - Overall gross margin for Q1 increased by 3.2 percentage points to 54.9%, surpassing Bloomberg's consensus estimate by about 3.5 percentage points [2] Future Outlook - Q1 deferred revenue grew by approximately 50.8% year-over-year but showed a sequential decline [3] - Q2 learning service revenue growth is expected to decline to around 25% year-over-year [3] - The company anticipates total revenue growth of 22% year-over-year for Q2, with a non-GAAP OPM of 8.57% [3] Financial Projections - Revenue estimates for FY26, FY27, and FY28 have been adjusted to $2.834 billion, $3.459 billion, and $4.075 billion, respectively [4][9] - Non-GAAP net profit estimates for FY26, FY27, and FY28 are projected at $220 million, $373 million, and $544 million, respectively [4][9] - The target price based on the sum-of-the-parts (SOTP) valuation method is set at $13.89, down from a previous estimate of $14.82 [4][12]

教育公司好未来近日发布2026财年第一季度未经审计业绩报告（截至2025年5月31日）。根据报告显 示， 公司净收入飙升至5.75亿美元，较上年同期的4.142亿美元增长38.8%。这份强劲增长背后，是学习 服务和人工智能学习设备双引擎的稳健发力。 财务数据全线飘红，盈利能力显著改善 业务驱动：线下稳健，AI设备破局 股东回馈：大手笔回购彰显信心 好未来总裁兼首席财务官彭壮壮将增长归功于"学习服务和人工智能设备的稳步发展"。具体来看： 战略纵深：AI赋能与技术降本 财报电话会议中该公司阐述了其的核心战略方向：将深厚的教学积淀与AI技术前沿结合，以及利用AI 提升运营效率和利润率方面的具体应用： 挑战与投入：销售费用高企，设备赛道竞争加剧 强劲增长背后亦有隐忧： 销售与营销费用激增：Non-GAAP销售和营销费用同比大涨50.5%至1.777亿美元，占收入比升至 30.9%。管理层解释，这主要源于在线营销活动投入加大及品牌建设支出，旨在提升学习设备和 收入强劲增长：净收入5.75亿美元，同比增幅38.8%，为增长定下基调。 盈利指标亮眼：按非美国通用会计准则（Non-GAAP）计算，营业利润达2510万美元，远 ...

Market Capitalization Overview - New Oriental has a market capitalization of 15.747 billion [2] - TAL Education (好未来) has a market capitalization of 11.040 billion [2] - Vipshop (唯品会) has a market capitalization of 9.610 billion [2] - Miniso (名创优品) has a market capitalization of 5.940 billion [2] - Zai Lab (再鼎医药) has a market capitalization of 4.200 billion [2] - Huya (虎牙) has a market capitalization of 7.500 billion [2] Stock Performance - New Oriental's stock increased by 0.36 (+8.09%) [2] - TAL Education's stock decreased by 0.27 (-0.60%) [2] - Vipshop's stock increased by 0.56 (+2.49%) [2] - Miniso's stock increased by 0.01 (+0.07%) [2] - Zai Lab's stock decreased by 0.81 (-4.06%) [2] - Huya's stock increased by 0.03 (+0.75%) [2] Additional Company Insights - Financial One Account (金融壹账通) has a market capitalization of 2.91 million [3] - Xunlei (迅雷) has a market capitalization of 4.48 million [3] - Huami Technology (华米科技) has a market capitalization of 1.64 million [3] - Tuniu (途牛) has a market capitalization of 1.21 million [3] - Aiqiyi (爱奇艺) has a market capitalization of 24.11 billion [2]

Exhibit 99.1 TAL Education Group Announces Unaudited Financial Results for the First Fiscal Quarter Ended May 31, 2025 (Beijing–July 31, 2025)—TAL Education Group (NYSE: TAL) ("TAL" or the "Company"), a smart learning solutions provider in China, today announced its unaudited financial results for the first quarter of fiscal year 2026 ended May 31, 2025. Highlights for the First Quarter of Fiscal Year 2026 - Net revenues were US$575.0 million, compared to net revenues of US$414.2 million in the same period ...

Core Insights - The company reported a significant increase in net revenue for the first quarter of fiscal year 2026, rising from $414 million to $575 million year-over-year [1] - Operating profit turned positive at $14.35 million, compared to an operating loss of $17.33 million in the same period last year [1] - Net profit attributable to the company was $31.28 million, up from $11.40 million year-over-year [1] Financial Performance - Non-GAAP operating profit (excluding stock-based compensation) was $25.11 million, a substantial increase from $876,000 in the previous year [1] - Non-GAAP net profit (excluding stock-based compensation) reached $42.05 million, compared to $29.61 million in the same quarter last year [1] - As of May 31, 2025, the company had cash, cash equivalents, and short-term investments totaling $3.473 billion, down from $3.618 billion as of February 28, 2025 [1] Business Strategy - The increase in revenue is attributed to steady growth in learning services and AI-driven smart hardware, reflecting the company's commitment to providing high-quality learning experiences [1] - The launch of new smart hardware products (P4, T4, and S4) has expanded the company's reach to a broader user base [1] - The company aims to continue innovating in the K-12 learning sector, responding to changing user demands, and leveraging advancements in artificial intelligence and technology [1]