Action Education(605098)2024-05-14 12:48Company and Industry Summary Company Overview - The company focuses on a large customer strategy, primarily targeting clients with a revenue of over 300 million. In 2023, total revenue reached 670 million, with Concentrated EMBA and Principal EMBA accounting for 37% and 34% of total revenue respectively. The overall gross margin is 78% [1][2][15]. Key Points Business Strategy - The company employs a differentiation strategy in course content and client composition to gain a competitive advantage [2][12]. - The client base has shifted from small and medium enterprises to larger companies, particularly those with revenues exceeding 300 million, including listed companies and industry leaders [2][12]. - The primary target audience consists of senior management, especially chairpersons, influencing management and middle management [2]. Revenue Structure - In 2023, total revenue was 670 million, with Concentrated EMBA generating 248 million (37%) and Principal EMBA generating 235 million (34%). Other products include enterprise consulting (73.78 million, 11%) and implementation solution classes (93.04 million, 13.86%) [2][15]. Seasonal Trends - The highest revenue is generated in Q4, followed by Q2, Q3, and Q1. In Q1 of this year, order volume was 159 million, with April's order volume at 90 million. The sales target for Q2 is set at 350 million [1][8]. Future Outlook - The company anticipates a revenue and profit growth of 25%-30% in 2024, with order volume expected to exceed 1.1 billion. The target for large customers in 2024 is set at 300 [1][21]. Customer Retention and Repurchase - The retention data for large customers is not yet clear, but there is a 55% overlap rate of customers from previous years. Customers purchasing Principal EMBA may not place new orders in the following year due to the long delivery cycle [5][11]. Sales Model - The sales model is primarily referral-based, with over 30 branches across the country providing localized service support, enhancing customer satisfaction and loyalty [6]. Industry Focus - The company primarily serves the large consumer sector, with significant orders from companies like Yufan Foods and Langjiu. The focus remains on large customers within the consumer industry, which has a higher demand for management training and consulting services [9]. Training Effectiveness - The training aims to enhance team efficiency and promote a shift in mindset and behavior among team members. The course design emphasizes practical application rather than just theoretical knowledge [10]. Competitive Landscape - Traditional business schools are seen as strong competitors, but the company believes that training is not exclusive. The company aims to differentiate itself through its course design and focus on team management rather than individual networking [13][14]. Financial Performance - The company maintains a gross margin of approximately 78%, with Concentrated EMBA at 84.4% and Principal EMBA at 86.7%. Cost control measures, including long-term partnerships with suppliers, contribute to this performance [15][20]. Sales Team and Performance - The sales team consisted of 720 members last year, with an average revenue per salesperson of 1.2 million. The average salary for sales personnel is 200,000 [19]. Shareholder Returns - The company plans to maintain a shareholder return plan of 80% or more [21]. Additional Insights - The company has implemented strict measures to ensure that new clients must have a revenue of over 300 million, reflecting a commitment to its large customer strategy [18]. - The company’s approach to training emphasizes standardization and replicability, reducing reliance on individual star instructors [17].