好未来：FY25Q2业绩超预期，素质教育+学习机业务快速发展。

Investment Rating - The report assigns a Buy rating to TAL Education Group (TAL) with a target price of $14.9, representing a 48.1% upside from the current price [4] Core Views - TAL's FY25Q2 results exceeded expectations, driven by strong growth in quality education and learning device businesses [2] - Revenue for FY25Q2 reached $619 million, up 50.4% YoY, beating market expectations by 6.3 percentage points [2] - Non-GAAP operating profit was $64.52 million, up 22.5% YoY, with a margin of 10.4% [2] - Non-GAAP net profit reached $74.33 million, up 25.4% YoY, with a margin of 12.0% [2] - The company ended the quarter with $3.45 billion in cash and short-term investments, with no bank debt [2] Business Performance Education Business - Education and training accounted for ~70% of total revenue, growing over 45% YoY [3] - Quality education contributed ~50% of education revenue, growing ~70% YoY [3] - High school education accounted for ~15%, showing stable growth [3] - The company added over 400 offline learning centers in FY25Q2, with full-year capacity expansion expected to grow 50% YoY [3] Content Solutions - Content solutions accounted for ~25% of revenue, growing over 50% YoY, driven by learning device sales [3] - The company launched the xPad Classic 2024 priced at $450-500 and a lower-priced practice device, expanding its product line [3] - Learning device sales reached ~150,000 units in the quarter, with a weekly active rate of 80% [3] Financial Outlook - For FY25Q3, revenue is expected to grow 39% YoY to $520 million, with continued strong growth in non-academic training and learning devices [3] - The company's profitability is expected to improve as upfront investments in various businesses gradually taper off [4] Valuation - The target price of $14.9 is based on a DCF valuation with a WACC of 11% and a long-term growth rate of 3% [4] - The company is well-positioned to benefit from a stabilizing regulatory environment and continued market demand for education services [4]