Action Education(SH:605098) Guoxin Securities·2025-04-16 09:00Investment Rating - The investment rating for the company is "Outperform the Market" [6][20][21] Core Views - The company achieved a net profit of 269 million yuan in 2024, aligning with expectations, with total revenue of 783 million yuan, representing a 16.5% increase year-on-year [1][9] - The management training segment generated 633 million yuan in revenue, growing by 6.3%, while management consulting revenue surged by 97.4% to 146 million yuan [2][9] - The company plans to open 100 new branches in key cities over the next 3-5 years as part of its expansion strategy, known as the "Hundred Schools Plan" [3][19] Summary by Sections Financial Performance - In 2024, the company reported total revenue of 783 million yuan, a 16.5% increase, and a net profit of 269 million yuan, up 22.4% [1][9] - The fourth quarter of 2024 saw revenue of 221 million yuan, a 4.5% increase, and a net profit of 73.97 million yuan, up 25.8% [1][9] - The gross profit margin for 2024 was 76.1%, down 2.2 percentage points due to an increase in low-margin consulting and book sales [3][11] Cash Flow and Dividends - The company reported a cash collection of 338 million yuan in Q4 2024, an 11.1% year-on-year increase, indicating a return to positive growth [2][10] - The cash dividend payout ratio for 2024 was 99%, with a corresponding dividend yield of 5.7% based on the latest closing price [4][19] Future Projections - Revenue forecasts for 2025 and 2026 have been adjusted downwards to 880 million yuan and 1.009 billion yuan, respectively, reflecting a decrease of 8% and 11% [4][20] - The company anticipates a gradual recovery in its training business, leveraging AI technology to enhance sales conversion rates [4][20]