Action Education(SH:605098) Xinda Securities·2025-08-12 11:39Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company experienced a revenue decline of 11.7% year-on-year in H1 2025, with total revenue of 340 million yuan and a net profit of 130 million yuan, down 3.5% year-on-year [3] - The company maintains a high dividend payout ratio exceeding 90%, with a dividend yield of 6% [2][3] - The "Hundred School Plan" is progressing smoothly, with expectations for a turnaround in fundamentals [3][6] Financial Performance Summary - In H1 2025, management training revenue was 290 million yuan, down 8.9%, while management consulting revenue was 50 million yuan, down 25.6% [3] - The overall gross margin increased by 1.3 percentage points to 77.5%, with management training gross margin rising to 84.3% [3] - The company reported a cash collection decline of 20% in Q2 2025, with cash received from sales and services amounting to 230 million yuan [3] - The company has distributed a total of 268 million yuan in cash dividends over the past 12 months [3] AI Empowerment and Expansion Plans - The company has initiated an AI transformation project across four core business processes, significantly improving efficiency [3] - The "Hundred School Plan" aims to open 100 branches in key cities over the next 3-5 years, with AI assisting in the training and replication of branch managers [3][4] Earnings Forecast - The company forecasts net profits of 301 million yuan, 350 million yuan, and 399 million yuan for 2025, 2026, and 2027 respectively, with corresponding PE ratios of 15x, 13x, and 11x [6]