Action Education(605098) Haitong Securities·2024-10-29 00:45Investment Rating - The investment rating for the company is "Outperform the Market" [1] Core Views - The company reported a revenue of 563 million yuan for the first three quarters of 2024, representing a year-on-year growth of 22.1%. The net profit attributable to shareholders was 195 million yuan, up 21.1% year-on-year [5] - The company has a strong focus on shareholder returns, proposing a cash dividend of 5 yuan per 10 shares for the third quarter, totaling 59.63 million yuan [6] - The company maintains a healthy cash position with 1.235 billion yuan in cash and cash equivalents as of the end of the third quarter of 2024 [5] Financial Performance - The company's gross profit margin for the first three quarters of 2024 was 75.9%, a decrease of 2.9 percentage points year-on-year. The gross profit margins for the first, second, and third quarters were 71.8%, 78.6%, and 75.4%, respectively [5] - The operating expenses ratio improved to 36.2% for the first three quarters of 2024, down 2.6 percentage points year-on-year [6] - The company expects to maintain a high level of dividends in the future, with projected net profits for 2024-2026 of 261 million, 318 million, and 390 million yuan, respectively [7] Market Comparison - The company is expected to have a reasonable valuation range of 43.80 to 52.56 yuan per share based on a price-to-earnings ratio of 20-24 times for 2024 [7] - The company’s stock price has fluctuated between 30.16 and 56.00 yuan over the past 52 weeks [1] Future Outlook - The company is well-positioned to benefit from the increasing demand for talent development and management training in the growing Chinese economy [7] - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 2.19, 2.67, and 3.28 yuan, respectively [10]