Summary of Action Education Conference Call Company Overview - **Company**: Action Education - **Industry**: Management Training and Consulting Key Points Financial Performance - For Q3 2025, Action Education reported a revenue of **¥566 million** and a net profit attributable to shareholders of **¥215 million** [4][6] - Total assets reached **¥2.177 billion**, with net assets at **¥960 million** and contract liabilities at **¥1.05 billion** [4][6] - Major revenue sources include: - Concentrated EMBA: **¥203 million** (35.92%) - Principal EMBA: **¥200 million** (35.45%) - Management Consulting: **¥88.34 million** (15.65%) [4][6] Core Business Segments - Concentrated EMBA and Principal EMBA account for over **70%** of total revenue, highlighting the concentration of core business [2][4] - Total revenue from the three main products constitutes **87%** of overall income [2][4] Training Participation - In Q3 2025, the number of participants for Concentrated EMBA exceeded **8,300** with an attendance rate of **107%** [2][5] - Principal EMBA had over **7,800** participants with a **100%** attendance rate [2][5] Market Response and Growth Strategies - Despite market uncertainties in Q2, the company demonstrated strong resilience, leading to a significant rebound in revenue and cash flow in Q3 [2][6] - The industrial manufacturing sector has become the largest client industry, accounting for **21%** of total payments, surpassing the food industry [2][7] - The healthcare sector has risen to the third position, indicating shifts in client structure due to macroeconomic changes [2][7] Cost Management - Operating costs decreased by approximately **10%** in Q3, attributed to economies of scale and increased participation lowering unit costs [2][9][10] - The overall gross margin for the first nine months of the year was **78%**, with a slight decrease in sales expense ratio [11] AI Product Development - Action Education launched AI Sales Master and AI Organizational Building tools, receiving positive feedback and orders from clients [3][13] - Future pricing strategy for AI products aims to enhance total revenue through volume rather than high pricing [13] Expansion Plans - The "Hundred Schools Plan" aims to increase sales channels and brand influence, with over **50%** of new locations in previously untapped areas [2][8][12] - Currently, **14** city general managers are in incubation, with **8** entering the second phase of site establishment [12] Dividend Policy - The company maintains a high dividend policy, aiming for full distribution to shareholders based on strong performance expectations by year-end [15] Future Outlook - The company anticipates sustained profit margins around **30%**, with stable management and financial expenses [11] - Continued recruitment of talent and expansion of the "Hundred Schools Plan" is expected to drive future growth [12] This summary encapsulates the key insights from the conference call, focusing on financial performance, market strategies, product development, and future outlook for Action Education.

Market Overview - The education sector experienced a decline of 0.25% on October 24, with ST Dongshi leading the drop [1] - The Shanghai Composite Index closed at 3950.31, up 0.71%, while the Shenzhen Component Index closed at 13289.18, up 2.02% [1] Individual Stock Performance - Notable gainers included: - Guomai Technology (002093) with a closing price of 11.52, up 1.77% and a trading volume of 193,600 shares [1] - ST Chuan Zhi (003032) closed at 6.74, up 0.60% with a trading volume of 41,800 shares [1] - Angli Education (600661) closed at 10.65, up 0.47% with a trading volume of 39,500 shares [1] - Notable decliners included: - ST Dongshi (603377) closed at 3.54, down 3.28% with a trading volume of 149,900 shares [2] - Dou Shen Education (300010) closed at 7.06, down 2.49% with a trading volume of 730,200 shares [2] - Quantu Education (300359) closed at 5.56, down 0.89% with a trading volume of 71,200 shares [2] Capital Flow Analysis - The education sector saw a net outflow of 243 million yuan from institutional investors, while retail investors contributed a net inflow of 174 million yuan [2] - The net inflow from speculative funds was 69.54 million yuan [2] Detailed Capital Flow for Selected Stocks - Guomai Technology (002093) had a net inflow of 25.47 million yuan from institutional investors, while it saw a net outflow of 13.26 million yuan from speculative funds [3] - ST Chuan Zhi (003032) experienced a net inflow of 4.85 million yuan from institutional investors, but a net outflow of 3.23 million yuan from speculative funds [3] - ST Kaiyuan (300338) had a significant net outflow of 4.32 million yuan from institutional investors, while speculative funds contributed a net inflow of 1.35 million yuan [3]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [5]. Core Insights - The company reported a 43% year-on-year increase in net profit attributable to shareholders for Q3 2025, with revenue reaching 222 million yuan, up 27.93% year-on-year [1]. - The cash collection for Q3 increased significantly by 53.31% year-on-year, indicating a recovery in customer demand as the macroeconomic environment stabilizes [2]. - The "Hundred School Plan" is progressing steadily, aiming to establish 100 branches in key cities over the next 3-5 years, with early successes in team formation and revenue generation [3]. Financial Performance Summary - For Q3 2025, the company achieved a revenue of 222 million yuan and a net profit of 83.4 million yuan, with a gross margin of 80.16% [1]. - For the first three quarters of 2025, the cumulative revenue was 566 million yuan, with a net profit of 215 million yuan, reflecting a year-on-year growth of 10.39% [1]. - The company plans to distribute a cash dividend of 0.5 yuan per share, with a cumulative dividend payout ratio of 83.27% for the first three quarters of 2025 [1]. Financial Projections - Revenue projections for 2025-2027 are 877.66 million yuan, 976.62 million yuan, and 1,072.35 million yuan, respectively, with growth rates of 12.03%, 11.27%, and 9.80% [4]. - The net profit attributable to shareholders is projected to be 307.36 million yuan in 2025, 343.49 million yuan in 2026, and 377.93 million yuan in 2027, with corresponding growth rates of 14.44%, 11.75%, and 10.03% [4]. - The company’s earnings per share (EPS) is expected to increase from 2.58 yuan in 2025 to 3.17 yuan in 2027 [4].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% compared to the benchmark index [3][11]. Core Insights - The company reported a revenue of 566 million yuan for the first three quarters of 2025, a year-on-year increase of 0.52%, and a net profit attributable to shareholders of 215 million yuan, up 10.39% year-on-year. In Q3 alone, revenue reached 222 million yuan, reflecting a significant growth of 27.93% year-on-year, with net profit increasing by 42.78% to 83.4 million yuan [1][2]. - The "Hundred Schools Plan" initiated in 2025 aims to establish 100 branches in key cities over the next 3-5 years, leveraging AI to enhance organizational growth and efficiency. This strategy has already shown promising results, with a core team generating 5.28 million yuan in revenue within a short period [2]. - The company has established a strong competitive advantage in corporate management training and consulting, supported by its brand, faculty, and marketing strategies. The integration of AI into its operations is expected to further enhance its growth trajectory [3]. Financial Summary - For 2025, the company is projected to achieve a net profit of 301.96 million yuan, with earnings per share (EPS) estimated at 2.53 yuan. The price-to-earnings (P/E) ratio is expected to be 15.76x [3][5]. - The financial forecast indicates a steady increase in revenue from 672.24 million yuan in 2023 to 1,068.94 million yuan by 2027, with a compound annual growth rate (CAGR) of approximately 10.26% [5][9]. - The company's return on equity (ROE) is projected to remain strong, with estimates of 28.82% in 2025, gradually declining to 21.26% by 2027 [5][9].

Core Insights - The article highlights the top-performing stocks in the S&P China A-Share Dividend Opportunity Index, showcasing significant price increases and dividend yields [1] Group 1: Stock Performance - Tianshan Aluminum (002532.SZ) leads with a year-to-date increase of 68.53% and a recent gain of 5.12%, along with a dividend yield of 3.07% [1] - Postal Savings Bank of China (601658.SH) shows a year-to-date increase of 10.83% and a recent gain of 4.71%, with a dividend yield of 3.60% [1] - DeYe Co., Ltd. (605117.SH) has a year-to-date increase of 30.95% and a recent gain of 4.61%, with a dividend yield of 3.52% [1] - Mercury Home Textiles (603365.SH) reports a year-to-date increase of 22.70% and a recent gain of 4.35%, with a dividend yield of 4.68% [1] - Action Education (605098.SH) has a year-to-date increase of 22.78% and a recent gain of 3.51%, with a dividend yield of 5.45% [1] Group 2: Additional Notable Stocks - China Petroleum (601857.SH) shows a year-to-date increase of 8.39% and a recent gain of 3.15%, with a dividend yield of 5.12% [1] - Shenhuo Co., Ltd. (000933.SZ) has a year-to-date increase of 45.92% and a recent gain of 2.97%, with a dividend yield of 3.33% [1] - Yutong Bus (600066.SH) reports a year-to-date increase of 18.44% and a recent gain of 2.82%, with a dividend yield of 6.77% [1] - Tunnel Engineering (600820.SH) has a year-to-date increase of 2.68% and a recent gain of 2.73%, with a dividend yield of 4.48% [1] - Jiangsu Guotai (002091.SZ) shows a year-to-date increase of 22.25% and a recent gain of 2.14%, with a dividend yield of 4.66% [1]

Group 1: Macro Insights - The report highlights new goals and strategies from the Fourth Plenary Session, including a focus on enhancing national defense capabilities and international influence by 2035, and the establishment of a "strong aerospace nation" [4] - Key tasks have been prioritized, emphasizing the modernization of the industrial system, opening up to the outside world, and improving people's livelihoods, particularly in promoting high-quality development in real estate [4] - The report suggests that while short-term policies may intensify, the overall approach will lean towards gradual adjustments rather than immediate actions, with a focus on laying groundwork for the upcoming year [4] Group 2: Pharmaceutical Industry - The report on InnoCare Pharma (映恩生物-B) indicates that the company has rapidly advanced its clinical development through a self-built ADC platform, with HER2 ADC expected to file for listing in 2025 [5] - Revenue projections for InnoCare Pharma are set at 1.95 billion, 2.15 billion, and 2.90 billion yuan for 2025-2027, with growth rates of 0.5%, 10.3%, and 35.1% respectively, leading to a target market valuation of approximately 42.67 billion yuan [5] Group 3: Power Sector - The report notes a significant increase in electricity consumption in September, particularly in the secondary industry, which grew by 5.7%, driven by improved water conditions boosting hydropower generation [6] - The report recommends focusing on the thermal power sector, highlighting companies like Huaneng International and Huadian International as potential investment opportunities due to their strong performance and favorable market conditions [6] Group 4: Construction and Decoration - China National Materials (中材国际) has shown steady revenue growth in the first three quarters of 2025, with a strong overseas order intake and an attractive dividend yield [10] - The projected net profits for China National Materials are 3 billion, 3.3 billion, and 3.6 billion yuan for 2025-2027, reflecting growth rates of 1.4%, 10.2%, and 9.2% respectively [10] Group 5: Agriculture and Animal Husbandry - Guibao Pet (乖宝宠物) reported a revenue of 4.737 billion yuan for the first three quarters of 2025, marking a year-on-year increase of 29.03%, while net profit reached 513 million yuan, up 9.05% [11] - The company is focusing on high-end brand strategies, with significant sales growth during the Double Eleven shopping festival, indicating a strong market position in the pet food sector [12] Group 6: Textile and Apparel - Tabo (滔搏) experienced a revenue decline of 5.8% in FY2026H1, but maintained a stable profit margin, with a focus on digital capabilities and operational efficiency [16] - Bosideng (波司登) is expected to achieve stable revenue and healthy profit growth as the winter season approaches, with projected net profits of 3.901 billion, 4.392 billion, and 4.951 billion yuan for FY2026-2028 [18] Group 7: Education Sector - Action Education (行动教育) reported a return to positive growth in Q3, driven by its "effectiveness + AI" strategy, with net profits projected to grow by 11.7%, 10.3%, and 10.3% for 2025-2027 [23] Group 8: Electronics - Shannon Semiconductor (香农芯创) reported a significant revenue increase of 59.9% year-on-year for the first three quarters of 2025, with a strong outlook for Q4 driven by rising demand for enterprise-level SSDs and DRAM products [24][25] - Revenue forecasts for Shannon Semiconductor are set at 38.9 billion, 58 billion, and 79.7 billion yuan for 2025-2027, with corresponding net profits of 605 million, 1.204 billion, and 2.025 billion yuan [26]

Core Viewpoint - The company reported significant growth in Q3 2025, driven by improved enrollment rates and a strong order backlog, indicating a positive outlook for future performance [4][5]. Financial Performance - For the first three quarters of 2025, the company achieved revenue of 570 million, a year-on-year increase of 0.5%, and a net profit attributable to shareholders of 210 million, up 10.4% year-on-year [4]. - In Q3 2025, revenue reached 220 million, reflecting a year-on-year growth of 27.9%, while net profit attributable to shareholders was 80 million, marking a 42.8% increase year-on-year [4]. Growth Drivers - The significant improvement in Q3 performance was attributed to the recovery of enrollment rates, particularly in major cities like Chengdu, Shanghai, and Shenzhen, as customer demand that was delayed in Q2 was released in Q3 [5]. - As of September 2025, the company's contract liabilities stood at 1.048 billion, indicating a robust order backlog that supports future revenue recognition [5]. Profitability and Cost Management - The gross margin for the first three quarters of 2025 was 78.54%, increasing to 80.16% in Q3, reflecting a year-on-year increase of 2.63 and 4.78 percentage points, respectively, due to an optimized product mix [6]. - The sales expense ratio decreased to 24.63% in Q3, down 4.77 percentage points year-on-year, primarily due to a high expense base from the previous year's "Principal Festival" [6]. - The net profit margin for the first three quarters was 38.38%, rising to 38.53% in Q3, with a year-on-year increase of 3.43 and 4.44 percentage points, respectively [6]. Strategic Initiatives - The company is advancing its AI strategy, which has begun to show positive effects, such as improved retention rates and sales performance through an AI assessment system [7]. - The "Hundred Schools Plan," initiated in February 2025, aims to expand the sales network to 100 cities over the next 3-5 years, with progress including the recruitment of 9 branch managers and a core team of 42 people, generating over 5.27 million in revenue [7].

Group 1 - The article discusses the potential of nuclear fusion as a near "ultimate energy" source due to its high energy density, relative ease of raw material acquisition, high safety, and zero carbon emissions [4] - Tesla's Q3 2025 total revenue reached $28.1 billion, showing a year-on-year increase of 11.6% and a quarter-on-quarter increase of 24.9%, while the non-GAAP net profit decreased by 29.3% year-on-year to $1.77 billion [4] - Yingzi Network reported a total revenue of 4.293 billion yuan for the first three quarters of 2025, a year-on-year increase of 8.33%, with Q3 revenue at 1.465 billion yuan, up 6.25% year-on-year [4] Group 2 - Hikvision's Q3 2025 revenue was 23.94 billion yuan, a year-on-year increase of 0.7%, with a net profit of 3.66 billion yuan, up 20.3% year-on-year [6] - iFlytek's revenue for the first three quarters of 2025 was 16.99 billion yuan, a year-on-year increase of 14.4%, while the net loss narrowed significantly compared to the previous year [6] - Tmall's performance in the first half of the 2026 fiscal year showed a revenue decline of 5.8% to 12.3 billion yuan, with a net profit decrease of 9.7% to 790 million yuan [7] Group 3 - Action Education's Q3 2025 revenue reached 220 million yuan, a year-on-year increase of 27.9%, with a net profit of 80 million yuan, up 42.8% year-on-year, driven by improved enrollment rates and optimized product structure [8]

Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook for its stock performance relative to the benchmark index [7]. Core Insights - The company has shown a strong rebound in performance, with a year-on-year revenue increase of 0.52% to 566 million yuan and a net profit growth of 10.39% to 215 million yuan for the first nine months of 2025 [1][2]. - The "Hundred Schools Plan" has been effectively executed, contributing positively to market expansion and overall company performance [5]. - The company has enhanced its profitability, with gross and net profit margins improving to 78.54% and 38.38%, respectively [4]. Summary by Sections Financial Performance - For Q3 2025, the company achieved a revenue of 222 million yuan, a significant year-on-year increase of 27.93%, and a net profit of 83 million yuan, up 42.78% [2]. - The company plans to distribute a cash dividend of 0.5 yuan per share, with a cumulative dividend expected to reach 1.5 yuan per share for the first nine months of 2025, resulting in a dividend yield of 3.63% [4]. Cost Control and R&D Investment - The company has effectively controlled costs, with sales, management, and financial expense ratios showing favorable trends [3]. - R&D expenses increased by 22.82% to 18 million yuan, with a research expense ratio of 3.23% [3]. Future Outlook - Revenue projections for 2025-2027 are estimated at 1.036 billion yuan, 1.191 billion yuan, and 1.310 billion yuan, respectively, with corresponding EPS forecasts of 2.79 yuan, 3.28 yuan, and 3.62 yuan [5][6]. - The company is transitioning towards an "AI Organization" strategy, aiming to become a world-class AI organization within three years [5].

Investment Rating - The report maintains a "Buy" rating for the company [6]. Core Views - The company has returned to positive growth in Q3 2025, driven by its "Effectiveness + AI" strategy, which is expected to accelerate the expansion of large clients [2][4]. - The company aims to enhance customer retention and acquisition, targeting a 90%+ repurchase rate and a 90% referral rate from large clients by 2025 [2]. - The financial outlook is optimistic, with projected net profits for 2025-2027 expected to grow by 11.7%, 10.3%, and 10.3% respectively [4]. Financial Performance Summary - For Q1-Q3 2025, the company achieved revenue of 566 million yuan (YoY +0.52%) and a net profit of 215 million yuan (YoY +10.39%) [1]. - In Q3 2025 alone, revenue reached 222 million yuan (YoY +27.93%) and net profit was 83.4 million yuan (YoY +42.78%) [1]. - The overall gross margin for Q3 2025 was 80.16%, an increase of 4.78 percentage points year-on-year [3]. - The company’s cash receipts for Q1-Q3 2025 totaled 557 million yuan, with Q3 showing a significant recovery at 219 million yuan (YoY +53.31%) [3]. Strategic Initiatives Summary - The company is implementing a "System + AI" strategy to enhance operational efficiency and customer engagement [2]. - The "Production Factory Model" for curriculum development is being updated to meet industry demands, with a focus on continuous improvement [4]. - The company is expanding its channel network with over 30 branches across major cities, aiming to strengthen its market presence [4].