Action Education(SH:605098) Guohai Securities·2024-04-19 07:00Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook compared to the market index [11][16]. Core Insights - The company achieved a revenue of 672 million yuan in 2023, representing a year-over-year growth of 49.08%, with a net profit attributable to shareholders of 219 million yuan, up 97.95% year-over-year [3][26]. - The company plans to distribute a cash dividend of 10 yuan per 10 shares, totaling 118 million yuan, reflecting a high cash dividend rate of 96.85% for the year [6][16]. - The company has successfully implemented a major client strategy, resulting in significant revenue growth driven by new large clients [15][28]. Financial Performance - In 2023, the company reported a gross profit of 526 million yuan, with a gross margin of 78.26%, which is an increase of 3 percentage points year-over-year [12][26]. - The operating cash flow for 2023 exceeded 400 million yuan, showing a substantial increase of 533.88% year-over-year [4][14]. - The company’s net profit margin improved to 32.64%, an increase of 8 percentage points compared to the previous year [26]. Business Segments - The management training segment generated 595 million yuan in revenue, marking a year-over-year increase of 55.26%, while the management consulting segment saw revenue of 74 million yuan, up 13.53% [3][12]. - The company has developed new courses in collaboration with top global institutions, enhancing its product offerings [7][28]. Future Projections - The company is projected to achieve revenues of 868 million yuan in 2024, with a growth rate of 29%, and net profits of 282 million yuan, also reflecting a 29% increase [8][16]. - The earnings per share (EPS) is expected to rise from 1.86 yuan in 2023 to 2.39 yuan in 2024 [8][16].