Action Education(605098)2025-05-09 05:15Investment Rating - The report maintains a "Buy" rating for the company [2][8]. Core Views - In Q1 2025, the company reported revenue of 131 million yuan, a year-on-year decrease of 7.21%, while the net profit attributable to the parent company was 28 million yuan, an increase of 17.80%. The net profit after deducting non-recurring items was 23 million yuan, down 9.53% year-on-year. Contract liabilities slightly decreased to 1.048 billion yuan from 1.080 billion yuan at the beginning of the period, a decline of 2.97% [2][6]. - The company expects net profits attributable to the parent company for 2025, 2026, and 2027 to be 320 million, 380 million, and 440 million yuan respectively, corresponding to price-to-earnings ratios of 14, 12, and 10 times [2][6]. Summary by Sections Financial Performance - Q1 2025 revenue was 131 million yuan, down 7.21% year-on-year. The net profit attributable to the parent company was 28 million yuan, up 17.80%, while the net profit after deducting non-recurring items was 23 million yuan, down 9.53%. Contract liabilities were 1.048 billion yuan, slightly down from 1.080 billion yuan, a decrease of 2.97% [2][6]. Strategic Outlook - The company aims to develop 500 new major clients in 2025, focusing on enhancing brand reputation and customer loyalty, with targets for customer repurchase and referral rates both exceeding 90% [6]. Profitability Metrics - The comprehensive gross margin for Q1 2025 was 73.77%, an increase of 1.99 percentage points year-on-year. The net profit margin was 21.99%, up 4.31 percentage points year-on-year [6].