Action Education(SH:605098) EBSCN·2024-08-18 07:39Investment Rating - The report assigns an "Accumulate" rating for the company for the first time [1] Core Viewpoints - The company has been deeply engaged in the industry for nearly twenty years, with continuous growth driven by word-of-mouth [1] - The core business of the company is enterprise management training, contributing over 85% of its revenue [1] - The company has a high-standardized business model, resulting in a relatively high gross profit margin [1] - The introduction of a "major client" strategy has opened new growth opportunities, with plans to expand the number of major clients significantly [1][8] - The company has shown strong financial performance, with a consistent dividend payout ratio of over 70% in the past three years [1] Summary by Relevant Sections Company Overview - Founded in 2006, the company went public on the A-share main board in 2021, focusing on providing comprehensive knowledge services for small and medium-sized private enterprises [14] - The company has a stable shareholding structure, primarily controlled by the founder's family [21] Business Model and Competitive Advantage - The company operates a high-standardized business model, which allows for easy replication and scalability [30] - It has a strong sales network and a dedicated sales team, which is crucial for customer acquisition [1][30] - The company has a high customer retention rate, with approximately 85% of clients coming from referrals [30] Financial Performance - The company has shown steady revenue and profit growth, with a projected net profit of 280 million, 347 million, and 420 million yuan for 2024, 2025, and 2026, respectively [2][8] - The revenue for 2023 is expected to reach 672 million yuan, reflecting a growth rate of 49.08% [2] Market Potential - The enterprise management training market is expected to approach 90 billion yuan by 2027, with a compound annual growth rate (CAGR) of approximately 4.4% from 2023 to 2027 [6] - The company aims to develop 300 major clients in 2024, building on the success of expanding to 243 major clients in 2023 [1][8] Valuation - The report predicts a price-to-earnings (P/E) ratio of 14x, 11x, and 9x for the years 2024, 2025, and 2026, respectively [8]