Action Education(605098) 长江证券·2024-05-06 01:02Investment Rating - The report maintains a "Buy" rating for the company [23][25]. Core Insights - The company has achieved a significant increase in contract liabilities, amounting to 970 million yuan, which lays a solid foundation for revenue growth in 2024. The execution of a major client strategy has led to an increase in high-quality clients and an optimized client structure. Additionally, product price increases have contributed to the growth of contract liabilities on the company's books, enhancing the visibility and certainty of future revenue performance [6][7]. - The company is expected to continue its focus on practical and effective product positioning, aligning with market demand trends, and iterating its offerings. The ongoing execution of the major client strategy, primarily through client referrals and repeat purchases, aims to optimize the client structure and expand market coverage. Furthermore, the company plans to enhance overall profit margins by building a more professional talent team and implementing more efficient management practices [7][19]. Financial Performance - In Q1 2024, the company reported revenue of 141 million yuan, a year-on-year increase of 28.11%. The net profit attributable to the parent company was 23.99 million yuan, up 34.42% year-on-year, while the net profit after deducting non-recurring gains and losses reached 25.55 million yuan, reflecting a 67.05% increase year-on-year. The basic earnings per share were 0.20 yuan, an increase of 33.33% year-on-year [21]. - The company has successfully implemented its major client strategy, with over 240 major clients as of the end of 2023. This strategy relies on new talent to promote high-quality products, adhering to a growth formula based on "number of people * efficiency" [21][22]. Future Projections - The company is projected to achieve net profits attributable to the parent company of 272 million yuan, 349 million yuan, and 422 million yuan for the years 2024, 2025, and 2026, respectively, with corresponding price-to-earnings ratios of 23, 18, and 15 times [23][46].