Action Education(605098) 信达证券·2024-10-22 14:00Investment Rating - The report maintains a "Buy" rating for Action Education (605098 SH) [1] Core Views - The company achieved revenue of 563 million yuan in the first three quarters of 2024, a year-on-year increase of 2207% Net profit attributable to the parent company was 195 million yuan, up 2112% year-on-year [1] - In Q3 2024, revenue growth slowed to 027% year-on-year, with net profit attributable to the parent company increasing by 574% to 5841 million yuan [1] - The company plans to distribute a cash dividend of 500 yuan per 10 shares (tax included) [1] - The dividend payout ratio exceeds 90%, with a total planned cash dividend of 178 million yuan for the first three quarters of 2024 [2] Financial Performance Revenue and Profit - Q1 Q2 Q3 2024 revenue growth rates were 2811%, 3950%, and 027% respectively, showing a slowdown in growth [1] - Q3 2024 gross margin decreased by 417 percentage points to 7538% [1] - Q3 2024 net profit margin increased by 18 percentage points to 341%, partly due to 92 million yuan in government subsidies [1] Cash Flow and Liabilities - Q3 2024 cash received from sales of goods and services was 143 million yuan, a year-on-year decrease of 243% [1] - As of Q3 2024, contract liabilities were 965 million yuan, up 102% year-on-year but down 36% quarter-on-quarter [1] Future Projections - Adjusted net profit forecasts for 2024-2026 are 263 million, 309 million, and 362 million yuan respectively [2] - Current stock price corresponds to PE ratios of 18x, 15x, and 13x for 2024-2026 [2] Financial Indicators Income Statement - Projected operating income for 2024-2026: 808 million, 957 million, and 1116 billion yuan [3] - Projected net profit attributable to the parent company for 2024-2026: 263 million, 309 million, and 362 million yuan [3] Balance Sheet - Total assets projected to grow from 2269 million yuan in 2024 to 3049 million yuan in 2026 [4] - Current assets expected to increase from 1985 million yuan in 2024 to 2742 million yuan in 2026 [4] Cash Flow - Operating cash flow projected to grow from 278 million yuan in 2024 to 568 million yuan in 2026 [4] - Net cash flow from financing activities expected to be -120 million, -141 million, and -165 million yuan in 2024-2026 [4] Valuation Metrics - Projected EPS for 2024-2026: 220 yuan, 259 yuan, and 304 yuan [3] - Projected P E ratios for 2024-2026: 18x, 15x, and 13x [3] - Projected P B ratios for 2024-2026: 431x, 373x, and 323x [4]