Action Education(SH:605098) KAIYUAN SECURITIES·2024-10-23 23:30Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company has maintained a high dividend strategy, with Q4 being a peak season for training, which is expected to drive performance growth [2] - In Q3 2024, the company reported stable revenue of 173 million yuan (up 0.27% year-on-year) and a net profit of 58.41 million yuan (up 5.74% year-on-year), with a gross margin of 75.4% (down 4.2 percentage points) [2][3] - The company is optimistic about its customer acquisition capabilities and the upcoming peak season, maintaining profit forecasts for 2024-2026 [2][3] Financial Performance Summary - Q3 2024 revenue was 173 million yuan, with a year-on-year increase of 0.27%, while net profit was 58.41 million yuan, up 5.74% year-on-year [2] - For the first three quarters of 2024, total revenue reached 563 million yuan (up 22.1% year-on-year) and net profit was 195 million yuan (up 21.1% year-on-year) [2] - The company’s gross margin for the first three quarters of 2024 was 75.9% (down 2.9 percentage points year-on-year) [2] Expense and Profitability Insights - In Q3 2024, the sales expense ratio was 29.4% (up 2.1 percentage points year-on-year), while the management expense ratio was 12.7% (up 1.2 percentage points year-on-year) [3] - The net profit margin for Q3 2024 was 33.7% (up 1.7 percentage points year-on-year), which included government subsidies of 9.2 million yuan [3] - The company plans to distribute a cash dividend of 5.00 yuan per 10 shares (including tax), with a cash dividend ratio of 91.32% as of Q3 2024 [3] Order and Growth Potential - As of September 30, 2024, the company's contract liabilities stood at 965 million yuan, a year-on-year increase of 10.2% [4] - The company is expected to continue expanding its customer base during Q4, which is a critical period for corporate training budgets [4] - The company has launched a concentrated EMBA course targeting major clients, indicating strong brand advantages and an efficient sales system [4]