Action Education(SH:605098) Tianfeng Securities·2025-10-24 07:41Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [5]. Core Insights - The company reported a 43% year-on-year increase in net profit attributable to shareholders for Q3 2025, with revenue reaching 222 million yuan, up 27.93% year-on-year [1]. - The cash collection for Q3 increased significantly by 53.31% year-on-year, indicating a recovery in customer demand as the macroeconomic environment stabilizes [2]. - The "Hundred School Plan" is progressing steadily, aiming to establish 100 branches in key cities over the next 3-5 years, with early successes in team formation and revenue generation [3]. Financial Performance Summary - For Q3 2025, the company achieved a revenue of 222 million yuan and a net profit of 83.4 million yuan, with a gross margin of 80.16% [1]. - For the first three quarters of 2025, the cumulative revenue was 566 million yuan, with a net profit of 215 million yuan, reflecting a year-on-year growth of 10.39% [1]. - The company plans to distribute a cash dividend of 0.5 yuan per share, with a cumulative dividend payout ratio of 83.27% for the first three quarters of 2025 [1]. Financial Projections - Revenue projections for 2025-2027 are 877.66 million yuan, 976.62 million yuan, and 1,072.35 million yuan, respectively, with growth rates of 12.03%, 11.27%, and 9.80% [4]. - The net profit attributable to shareholders is projected to be 307.36 million yuan in 2025, 343.49 million yuan in 2026, and 377.93 million yuan in 2027, with corresponding growth rates of 14.44%, 11.75%, and 10.03% [4]. - The company’s earnings per share (EPS) is expected to increase from 2.58 yuan in 2025 to 3.17 yuan in 2027 [4].