Action Education(SH:605098) Xinda Securities·2025-10-22 13:11Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company reported a strong recovery in performance and collections in Q3 2025, with revenue reaching 222 million yuan, a year-on-year increase of 28%, and net profit attributable to shareholders of 83.4 million yuan, up 43% year-on-year [2] - The company plans to distribute a cash dividend of 0.5 yuan per share (including tax) [3] - The company's financial forecasts indicate a steady growth trajectory, with total revenue projected to reach 1.122 billion yuan by 2027, reflecting a compound annual growth rate (CAGR) of approximately 11.4% from 2023 to 2027 [5] Financial Performance Summary - In Q3 2025, the company experienced a significant turnaround in revenue growth, with Q1, Q2, and Q3 showing year-on-year growth rates of -7%, -14%, and 28% respectively [6] - The gross margin improved sequentially, with Q1, Q2, and Q3 gross margins recorded at 73.8%, 79.8%, and 80.2% respectively, attributed to a change in revenue structure [6] - Cash collections in Q3 increased by over 50%, indicating a strong performance in cash flow management [6] - The company has maintained a high dividend yield of 5.6%, with a total cash dividend distribution of 596.3 million yuan planned for Q3 2025 [6] - The earnings forecast for net profit attributable to shareholders is set at 301 million yuan for 2025, with a corresponding price-to-earnings (P/E) ratio of 16x [6]