QuantaSing Group Limited (QSG) Soars 12.55% on Strategic Shift, Citigroup Upgrade

QuantaSing Group Limited (QSG) surged 12.55% in pre-market trading on June 11, 2025, hitting a 52-week high. This significant rise was driven by a strategic shift and a positive upgrade from Citigroup.

Citigroup's upgrade reflects a transformative shift in QuantaSing's business model. The company is transitioning from an online education model with low returns on invested capital to a model emphasizing repeat purchases and brand-focused intellectual property. This strategic pivot is expected to enhance QuantaSing's market position and revenue streams.

Citi analyst Alice Cai upgraded QuantaSing to a Buy rating from a previous Neutral stance, setting a new price target of $9.52, up from $6.10. This change comes after discussions with the company's management. The firm has also initiated a “90-day positive catalyst watch” on the stock, highlighting significant potential for growth.

Despite expanding production molds 5-6 times, Wakuku’s output is still unable to meet more than half of the demand, demonstrating strong market acceptance. Upcoming restocking for Wakuku Gen-2 slated for mid-June is anticipated to boost revenues immediately following a period of shortages. Additionally, new intellectual property set to launch in June and July showcases the depth of QuantaSing's product pipeline.

QuantaSing Group Ltd (QSG) achieved revenue of RMB570.7 million, marking a significant milestone in their strategic shift from traffic-driven to product-driven business models. The company completed the consolidation of a major acquisition, positioning itself at the forefront of a high-growth market. Their financial literacy program and senior-focused recreation classes, such as the calligraphy program, have shown strong user engagement and retention rates. QuantaSing Group Ltd (QSG) has successfully expanded its study tour business to 16 cities, demonstrating strong market demand for their integrated approach. The company maintains a robust cash position, enabling strategic opportunities and financial resilience.