Investment Rating - The report maintains a "Buy" rating for the company, indicating a favorable outlook for investment returns over the next 6-12 months [5]. Core Insights - The company experienced a decline in revenue and net profit in the first half of 2025, with revenue at 340 million yuan, down 11.7% year-on-year, and net profit at 130 million yuan, down 3.5% year-on-year [1]. - Despite short-term business pressures, the company has a solid order backlog, with contract liabilities amounting to 1.059 billion yuan, reflecting a 5.83% increase compared to the same period last year [1]. - The company is actively pursuing an AI-driven strategic transformation, which has shown significant results in improving employee retention and marketing efficiency [3]. Summary by Sections Financial Performance - In H1 2025, the company's gross margin was 77.49%, an increase of 1.35 percentage points year-on-year, primarily due to a decrease in the proportion of low-margin consulting revenue [2]. - The net profit margin for H1 2025 reached 38.28%, up 2.95 percentage points year-on-year, aided by changes in the fair value of financial assets and increased investment income [2]. - The company plans to distribute a cash dividend of 119 million yuan, representing 90.74% of net profit attributable to shareholders [2]. Strategic Initiatives - The company is advancing its "Effective Education + AI" strategy, with plans to open 100 branches in key cities over the next 3-5 years, showing strong market expansion potential [3]. - AI implementation has led to a 16% increase in employee retention and a 46% growth in sales performance in H1 2025 [3]. Profit Forecast and Valuation - The profit forecasts for 2025-2027 have been adjusted to 294 million yuan, 334 million yuan, and 371 million yuan, respectively, reflecting a slight downward revision [3]. - The estimated EPS for 2025-2027 is projected to be 2.46 yuan, 2.80 yuan, and 3.11 yuan, with corresponding P/E ratios of 15x, 13x, and 12x [3].
行动教育(605098):业务短期承压,推进AI战略转型