Action Education(SH:605098) Soochow Securities·2024-08-17 07:00Investment Rating - The report assigns an "Accumulate" rating to the company for the first time [1]. Core Viewpoints - The company, Action Education, is a leader in the corporate training industry in China, with stable revenue growth and a high dividend payout ratio [2][3]. - The company's core products, Principal EMBA and Concentrated EMBA, focus on practical solutions to the challenges faced by businesses, leading to a strong reputation and high customer retention rates [2][3]. - The company has a well-established sales system and a team of experienced instructors, which enhances its competitive edge in the market [2][3]. Summary by Sections 1. Company Overview - Action Education has been deeply involved in corporate management training, with a focus on practical education for executives [12]. - The company has achieved significant revenue growth, with a reported revenue of 3.89 billion yuan in the first half of 2024, representing a year-on-year increase of 35.16% [2][12]. 2. Industry Analysis - The corporate training market in China has substantial growth potential, with increasing demand for management training services [30][31]. - The industry is characterized by a "water drop" structure, with a mix of leading comprehensive institutions and smaller specialized providers [34]. 3. Company Analysis - Action Education has built a strong brand reputation over the years, with a significant number of partnerships with leading companies [42][44]. - The company emphasizes continuous improvement in course quality, with a commitment to updating its curriculum regularly [45]. 4. Financial Analysis - The company's financial forecasts indicate a stable growth trajectory, with projected net profits of 2.8 billion yuan in 2024, 3.6 billion yuan in 2025, and 4.3 billion yuan in 2026 [3]. - The company has a high dividend payout ratio, with 2023 and 2024H1 dividend rates reaching 97% and 87%, respectively [2][3].