Action Education(SH:605098) Guoyuan Securities·2025-10-24 06:12Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% compared to the benchmark index [3][11]. Core Insights - The company reported a revenue of 566 million yuan for the first three quarters of 2025, a year-on-year increase of 0.52%, and a net profit attributable to shareholders of 215 million yuan, up 10.39% year-on-year. In Q3 alone, revenue reached 222 million yuan, reflecting a significant growth of 27.93% year-on-year, with net profit increasing by 42.78% to 83.4 million yuan [1][2]. - The "Hundred Schools Plan" initiated in 2025 aims to establish 100 branches in key cities over the next 3-5 years, leveraging AI to enhance organizational growth and efficiency. This strategy has already shown promising results, with a core team generating 5.28 million yuan in revenue within a short period [2]. - The company has established a strong competitive advantage in corporate management training and consulting, supported by its brand, faculty, and marketing strategies. The integration of AI into its operations is expected to further enhance its growth trajectory [3]. Financial Summary - For 2025, the company is projected to achieve a net profit of 301.96 million yuan, with earnings per share (EPS) estimated at 2.53 yuan. The price-to-earnings (P/E) ratio is expected to be 15.76x [3][5]. - The financial forecast indicates a steady increase in revenue from 672.24 million yuan in 2023 to 1,068.94 million yuan by 2027, with a compound annual growth rate (CAGR) of approximately 10.26% [5][9]. - The company's return on equity (ROE) is projected to remain strong, with estimates of 28.82% in 2025, gradually declining to 21.26% by 2027 [5][9].