Action Education(SH:605098) KAIYUAN SECURITIES·2025-08-12 09:11Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company experienced short-term fluctuations in performance in H1 2025, with revenue of 344 million yuan (down 11.68% year-on-year) and net profit attributable to shareholders of 131 million yuan (down 3.51% year-on-year). The decline is attributed to macroeconomic cycles and client performance [4][5] - The company continues its high dividend strategy, proposing a cash dividend of 10.00 yuan per 10 shares (including tax), resulting in a cash dividend ratio of 90.74% [4] - The company is optimistic about AI empowerment driving long-term growth, with a focus on customer acquisition and business expansion [4][6] Financial Performance Summary - In H1 2025, the company's management training revenue was 285 million yuan (down 8.9%), with a gross margin of 84.33%. Management consulting revenue was 54 million yuan (down 25.6%), with a gross margin of 46.55% [5] - The company reported a contract liability of 1.059 billion yuan (up 5.8% year-on-year), indicating stable orders on hand [4] - The projected net profits for 2025-2027 are 299 million, 349 million, and 411 million yuan respectively, with corresponding P/E ratios of 14.5, 12.4, and 10.5 [4][7] Strategic Initiatives - The company is transitioning from "effective education" to "effective education + AI," aiming to build an intelligent ecosystem management system for enterprises. The "Hundred Schools Plan" aims to open 100 branches in key cities over the next 3-5 years [6] - The company aims to empower 10,000 enterprises to become AI organizations and train 1 million AI operators, enhancing its influence in the global management education market [6]