TAL(US:TAL) KAIYUAN SECURITIES·2024-10-28 06:58Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company reported Q2 FY2025 revenue of $619 million, a year-over-year increase of 50.4%, exceeding expectations of 45% growth [4] - Non-GAAP operating profit reached $64.52 million, up 22.5% year-over-year, with a Non-GAAP operating profit margin of 10.42%, significantly better than the expected 3.7% [4] - The deferred revenue as of August 30, 2024, was $518 million, reflecting a 59.1% year-over-year increase [4] - The company is positioned as a leader in AI education and technology education in China, with expectations for profit release under a more favorable policy environment [4] Financial Summary and Valuation Metrics - FY2025 projected revenue is $2,149 million, with a year-over-year growth of 44.2% [5] - FY2025 projected net profit is $68 million, representing a year-over-year increase of 61.3% [5] - The projected EPS for FY2025 is $0.2, with corresponding P/E ratios of 51, 33, and 24 for FY2025, FY2026, and FY2027 respectively [5] - The company had cash and short-term investments totaling $3.454 billion as of Q1 FY2025 [4]