Action Education(SH:605098) Soochow Securities·2025-10-22 13:41Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company has achieved a revenue growth rate of 27.9% year-on-year in Q3 2025, reversing the decline seen in the first half of the year [7] - The net profit attributable to the parent company for Q3 2025 increased by 42.8% year-on-year, indicating accelerated profit release [7] - The company maintains a high level of contract liabilities at 1.048 billion, providing support for future performance recognition [7] - Effective cost control is evident, with a sales expense ratio of 24.6%, down 4.9 percentage points year-on-year, and a management expense ratio of 10.9%, down 1.9 percentage points year-on-year [7] - The "Hundred Schools Plan" is expected to accelerate the company's expansion [7] - The company is projected to achieve net profits of 3.0 billion, 3.3 billion, and 3.6 billion for 2025-2027, with corresponding P/E ratios of 16, 15, and 13 times [7] Financial Summary - Total revenue for 2023 is forecasted at 672.24 million, with a year-on-year growth of 49.08% [1] - The net profit attributable to the parent company for 2023 is projected at 219.45 million, reflecting a year-on-year increase of 97.95% [1] - The latest diluted EPS for 2023 is estimated at 1.84 [1] - The company’s total assets are expected to reach 2.232 billion in 2024, increasing to 3.357 billion by 2027 [8] - The operating profit for 2025 is projected at 356 million, with a net profit of 307 million [8]