Beijing Career International Co.Ltd(300662) (300662)
Key investment points:
The company is a leading provider of overall human resources solutions in China. By building a business model of “technology + platform + service”, the company creates an industrial interconnection ecology, provides integrated support for enterprise talent allocation and business development, and provides full chain empowerment for regional talent introduction, employment and talent integration.
The shift of economic growth and the continuation of the epidemic promote the development of flexible employment industry. 1) From the perspective of macroeconomic development, firstly, the pressure of economic transformation and economic growth objectively constructs the development environment of flexible employment. Economies in transition or shifts in economic growth will lead to underemployment, leaving many people with no choice but to enter the field of flexible employment. Secondly, flexible employment is in line with the service industry with large changes in demand and diversified demand forms. In the process of China’s economic structure transformation from the secondary industry to the tertiary industry in the future, the demand for flexible employment will be further amplified. 2) The Interim Provisions on labor dispatch, which came into force on March 1, 2014, stipulates that the employing unit shall strictly control the number of labor employment, and the proportion of dispatched labor employed by the enterprise shall not exceed 10% of the total employment. This policy makes the employing enterprises that originally took reducing labor costs as the main purpose and adopted the traditional labor dispatch mode face regulatory risks, thus expanding the development opportunities of flexible employment.
The company’s medium and high-end talent search business has a first mover advantage. At the beginning of its establishment in 1996, the company was mainly engaged in medium and high-end talent search business. It is an earlier group of companies engaged in medium and high-end talent search business. The company’s medium and high-end talent search business is divided into service units in a matrix of “industry + function + region”. The company has many years of industry and functional experience, and is well aware of the talent demand characteristics of key industries in China. The medium and high-end talent search business covers traditional industries such as medicine, consumer goods, real estate, finance, logistics, industrial manufacturing, energy and chemical industry.
Profit forecast: last year’s covid-19 epidemic led to a cold job market, disrupting the company’s original revenue growth rhythm. In the first three quarters of 2021, the revenue of the company’s three main businesses recovered rapidly. We expect that flexible employment, medium and high-end talent search and recruitment process outsourcing will increase by 105% \ 95% \ 90%, 33% \ 35% \ 35% and 30% \ 35% \ 35% respectively in 2021, 2022 and 2023, so that the final revenue will increase by 76.84% \ 74.77% \ 75.96%.
Risk tips: 1 The recurrence of covid-19 epidemic. 2. The strategic transformation of China’s economic structure is less than expected
