TAL(US:TAL) Minsheng Securities·2024-04-28 06:32Investment Rating - The report assigns a "Recommended" rating for TAL.N, indicating a positive outlook for the company's stock performance in the next 12 months [1]. Core Insights - TAL.N reported better-than-expected revenue and profit for Q4 FY2024, with a revenue of $1.149 billion, representing a year-over-year increase of 60% [1]. - The company's net income showed a significant improvement, with a year-over-year growth of 44%, driven by an increase in offline teaching points and student enrollment [1]. - The report highlights the company's focus on enhancing both online and offline educational products and services, with continued investment in AI technology to optimize learning experiences [1]. Summary by Sections Financial Performance - TAL.N's Q4 FY2024 operating profit turned positive, with a significant reduction in net losses, achieving a Non-GAAP profit margin of 29.3% [1]. - The company's deferred revenue balance increased year-over-year, indicating strong future revenue potential [1]. Business Trends - The learning services segment remains the primary revenue driver, benefiting from the expansion of teaching points and a stable increase in student enrollment [1]. - The report notes that the average weekly usage time of learning devices among users has remained stable, contributing to the growth of content-related business [1]. Strategic Focus - The company aims to continue improving its online and offline learning offerings, with a mature offline product matrix and a commitment to providing high-quality educational resources [1]. - TAL.N plans to invest in AI to enhance response speed and accuracy, further integrating technology into its educational services [1].