Action Education(SH:605098) Xin Lang Cai Jing·2025-08-12 12:28Core Viewpoint - The company experienced a decline in revenue and net profit in the first half of 2025, but maintains a strong order backlog and is focusing on strategic expansion through AI and a new school plan [1][3]. Financial Performance - In H1 2025, the company achieved revenue of 340 million yuan, a year-on-year decrease of 11.7%, and a net profit of 130 million yuan, down 3.5% year-on-year [1]. - In Q2 2025, revenue was 210 million yuan, a decline of 14.2% year-on-year, with a net profit of 100 million yuan, down 8.1% year-on-year [1]. - The company's cash received from sales and services in H1 2025 was 338 million yuan, a decrease of 25.13% year-on-year [1]. - The gross profit margin for H1 2025 was 77.49%, an increase of 1.35 percentage points year-on-year [2]. - The net profit margin for H1 2025 reached 38.28%, up 2.95 percentage points year-on-year [2]. - The company plans to distribute cash dividends of 119 million yuan in H1 2025, representing 90.74% of net profit [2]. Business Strategy and Expansion - The company is advancing its "Effective Education + AI" strategy, with significant improvements in employee retention and sales performance due to AI implementation [3]. - The "Hundred Schools Plan" aims to establish 100 branches in key cities over the next 3-5 years, with successful replication of management and early revenue generation [3]. - As of March to July 2025, the company has successfully replicated 9 branch managers and created a core team of 42 people, generating revenue of 5.2792 million yuan [3]. Profit Forecast and Valuation - The company's net profit forecasts for 2025-2027 have been adjusted to 294 million yuan, 334 million yuan, and 371 million yuan, reflecting a decrease of 4%, 3%, and 3% respectively [3]. - Corresponding EPS for 2025-2027 is projected to be 2.46 yuan, 2.80 yuan, and 3.11 yuan, with PE ratios of 15x, 13x, and 12x [3]. - The company is recognized as a leader in management training, with significant potential for future client development [3].