Action Education(605098) Changjiang Securities·2024-10-25 06:56Investment Rating - The investment rating for the company is "Buy" and is maintained [3][4]. Core Insights - In the first three quarters, the company's revenue reached 563 million yuan, representing a year-on-year increase of 22.07%. The net profit attributable to the parent company was 195 million yuan, up 21.12% year-on-year, while the net profit after deducting non-recurring gains and losses was 186 million yuan, reflecting an 18.72% increase year-on-year. For the third quarter alone, revenue was 173 million yuan, a slight increase of 0.27% year-on-year, with a net profit of 58.41 million yuan, up 5.74% year-on-year, but a decline of 15.19% for the net profit after deductions [3][4][6]. - The company plans to distribute a cash dividend of 5 yuan per 10 shares (tax included), totaling 59.63 million yuan (tax included). For the 2024 fiscal year, the total cash dividend planned is 178 million yuan (tax included), accounting for 91.32% of the net profit attributable to the parent company [3][4][6]. Financial Performance - The company's contract liabilities showed growth, increasing to 965 million yuan by the end of the third quarter, up 0.7% from the beginning of the year. This indicates the company's relative advantages in product, brand, and operations despite a challenging economic environment [4]. - The gross profit margin faced pressure, decreasing by 4.17 percentage points to 75.38%. The expense ratios for sales, management, R&D, and finance increased year-on-year, with sales expenses rising due to increased advertising spending. The combined effect of the gross profit margin and expense ratios led to a decline in net profit after deductions [4][6]. - The company has effectively built a professional talent team, enhancing organizational efficiency and improving individual performance, which supports sustained and stable growth in business performance [4]. Future Outlook - The company is expected to maintain its product positioning that is "down-to-earth and effective," adapting to market demand trends and continuously updating its offerings. It aims to execute a major client strategy, focusing on customer referrals and repeat purchases to optimize customer structure and expand market coverage [4]. - Forecasts for the net profit attributable to the parent company for 2024, 2025, and 2026 are 250 million yuan, 300 million yuan, and 360 million yuan, respectively, corresponding to price-to-earnings ratios of 17, 15, and 12 times [4][6].