Action Education(SH:605098) Tai Ping Yang·2025-04-16 13:25Investment Rating - The report maintains a "Buy" rating for the company, with a target price based on the last closing price of 39.15 [1][8] Core Views - The company achieved a revenue of 783.43 million yuan in 2024, representing a year-on-year growth of 16.54%, and a net profit attributable to shareholders of 268.57 million yuan, up 22.39% from the previous year [4][9] - The overall gross margin for the year was 76.05%, a decrease of 2.21 percentage points, primarily due to the structural change from the increase in management consulting revenue [5] - The company has a strong focus on large clients, having developed over 1,200 new clients in the year, with 295 being new large clients, which supports continued revenue growth [6] Financial Performance - In Q4 2024, the company reported revenue of 221 million yuan, a year-on-year increase of 4.47%, and a net profit of 73.97 million yuan, up 25.84% [4][5] - The company’s contract liabilities reached a new high of 1.08 billion yuan, with new signed orders of 933 million yuan, reflecting a 3.78% increase from 2023 [7] - The company plans to distribute a cash dividend of 0.75 yuan per share, totaling 89.44 million yuan, which represents 99.47% of the annual net profit attributable to shareholders [7] Future Projections - The company is expected to achieve net profits of 313.14 million yuan, 359.64 million yuan, and 405.24 million yuan for 2025, 2026, and 2027 respectively, with growth rates of 16.59%, 14.85%, and 12.68% [9] - The projected earnings per share (EPS) for 2025, 2026, and 2027 are 2.63 yuan, 3.02 yuan, and 3.40 yuan respectively, with corresponding price-to-earnings (PE) ratios of 15X, 13X, and 11X [8][9]