Action Education(SH:605098) ZHESHANG SECURITIES·2024-08-16 08:23Investment Rating - The investment rating for the company is "Buy" (maintained) [7] Core Views - The company achieved a year-on-year revenue growth of 39% and a net profit growth of 28% in Q2 2024, with a proposed cash dividend of 86.7% of net profit for H1 2024 [2] - The company is focusing on a large customer strategy, which is expected to enhance repurchase rates and stabilize cash collection performance [3] - The company has reached a record high of 1 billion yuan in contract liabilities, ensuring revenue recognition for the next 1 to 1.5 years [4] - The company has over 100 large clients, indicating strong demand and a significant market opportunity, with a market share of only about 0.1% in a market expected to exceed 800 billion yuan in 2024 [5] - The company's gross margin for Q2 2024 was 78.6%, with a decrease in expense ratios due to increased demand and improved enrollment rates [6] - The company is expanding its product offerings and targeting non-consumer industry clients, while also establishing a presence in Southeast Asia [7] - The company has a high dividend payout rate, with a dividend yield of approximately 5.4% [9] Financial Summary - Revenue projections for 2024-2026 are 890 million yuan, 1.063 billion yuan, and 1.252 billion yuan, respectively, with corresponding net profit projections of 286 million yuan, 340 million yuan, and 399 million yuan [10] - The company maintains a strong financial position with a projected return on equity (ROE) of 28.64% in 2024 and a net profit margin of 32.30% [12]