Action Education(SH:605098) Ge Long Hui A P P·2025-08-12 09:43Core Viewpoint - The report from Minsheng Securities indicates that Action Education's performance in the first half of the year was slightly below expectations, but the overall annual performance remains promising due to ongoing strategic initiatives and market improvements [1] Financial Performance - For the first half of 2025, the company's gross margin and net margin were 77.49% and 38.28% respectively, showing year-on-year increases of 1.35 percentage points and 1.44 percentage points [1] - Compared to the full year of 2024, the gross margin and net margin are expected to increase by 2.95 percentage points and 3.63 percentage points respectively, indicating a significant enhancement in profitability [1] Dividend Policy - The company has maintained a high dividend payout, having distributed dividends nine times since its listing in 2021, totaling 1.021 billion yuan, which is 1.75 times the total amount raised [1] - For the mid-2025 report, the company plans to distribute 10 yuan per share, with a payout ratio of 90.74% and a dividend yield of 2.79%, reflecting a strong commitment to returning value to shareholders [1] Strategic Initiatives - The company is actively promoting the "Hundred Schools Plan" and transitioning towards "Effectiveness Management + AI" [1] - The company adheres to a "one core, two wings" development strategy, a "major client strategy," and the "BRICS Plan," which are expected to drive future growth [1] Market Outlook - With the economy improving and external conditions marginally better, the enrollment and renewal rates for the company's EMBA courses are anticipated to improve in the second half of the year [1] - The relatively low base in the second half of 2024 further supports the expectation of a positive annual performance [1] Investment Thesis - The company is characterized as a typical "low valuation, high dividend" target, maintaining a "recommended" rating [1]