\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 62 Beijing Career International Co.Ltd(300662) )
Annual report of the company: 7 billion yuan / 2022; Operating profit of 351 million yuan / yoy + 43.63%; Total profit 388 million yuan / yoy + 43.04%; The net profit attributable to the shareholders of the listed company is 253 million yuan / yoy + 35.55%. The impact of non recurring profit and loss on net profit for the whole year was about 418972 million yuan. After deducting non recurring profit and loss and employee restricted stock cost, the net profit was 226 million yuan / yoy + 34.45%. The gross profit margin of the company in 21 years was 11.52%, with a year-on-year increase of -2.05pct; The net interest rate was 4.21%, year-on-year -1.07pct. 21q4 single quarter: in 21q4 single quarter, the company achieved a revenue of 1.831 billion yuan / yoy + 53.27%, and a net profit attributable to the parent company of 64 million yuan / yoy + 22.57%; Deduct non net profit of 43 million yuan / yoy + 5.35%. The gross profit margin of 21q4 company was 12.67%, with a year-on-year increase of + 0.21pct; The net interest rate was 4.08%, year-on-year -0.68pct.
Flexible business is the main support point for the company’s revenue. Chinese mainland business is dominated by revenue. The company uses the regional vertical management mode to promote the business model of “front store and back factory” and “thousands of people and thousands of Posts”, so as to promote the steady growth of various businesses. According to the division of the company’s business products, in 2021, the revenue of the company’s medium and high-end talent search business was 699 million yuan / yoy + 51.67%; The revenue of recruitment process outsourcing business is 146 million yuan / yoy + 31.09%; The revenue of flexible employment business was 5.931 billion yuan / yoy + 90.58%, of which the revenue of flexible employment in China increased significantly, with a year-on-year increase of 115%; Technical service revenue: 23 million yuan / yoy + 78.51%; Other business revenue is 212 million yuan / yoy-9.85%. The company’s business in China was split up in 2021, and its revenue in Chinese mainland was 5 billion 431 million yuan /yoy+91.38%. The business revenue in Hong Kong, Macao, Taiwan and overseas is 1.579 billion yuan / yoy + 44.34%.
The sales expense rate remained stable, and the information construction and digital transformation promoted the increase of R & D expense rate. In 2021, the company’s sales expense ratio was 2.41%, with a year-on-year increase of -0.12pct. In 2021, the company increased market expansion and product operation, and the sales expense increased by 70.07% year-on-year, but the growth rate was lower than the growth rate of revenue, thus reducing the sales expense ratio; The management expense ratio was 3.08%, with a year-on-year increase of -1.48pct, mainly due to the large increase in revenue; The financial expense ratio was 0.15%, with a year-on-year increase of + 0.26pct, which was mainly caused by the increase of loan interest and unrecognized financing expenses of lease liabilities in the current period; The R & D expense rate was 0.55%, with a year-on-year increase of + 0.18pct, mainly due to the investment in information construction and digital transformation.
Increase investment in research and development, strengthen the team of technical talents, and focus on the long-term layout of digitization. The year of 21 is the year of digital transformation of the company. In 2021, the total technical investment of the company reached 110 million and the number of R & D personnel reached 339, with a year-on-year increase of 74.74%. The company adheres to the core strategy of “one body and two wings”: on the one hand, strengthen the information construction of the group, focus on the infrastructure construction of technical middle stage and digital middle stage, and improve the human efficiency of offline diversified service products through digital management; On the other hand, we will continue to upgrade and optimize the construction and market promotion of a variety of new technology service products such as “vertical recruitment platform” (the same medical pulse), “human resource management SaaS platform” (Kerui talent to cloud), “human resource industry interconnection platform” (hefrog), “regional talent brain platform”. With the continuous maturity of the above digital / platform products, it is expected to open the second growth curve and fully stimulate the platform effect under technology empowerment.
The company’s human business performance is excellent, with a large number of dispatched employees and wide job coverage. (1) The company has continuously strengthened its ability to export talents and provide continuous energy for the operation of the enterprise. In 2021, the company dispatched 311750 flexible employees, with a year-on-year increase of 64%; (2) The company has accurately matched the medium and high-end talents and professional technicians with the demand side, with high customer recognition. In 2021, the company successfully recommended 35000 medium and high-end management and professional technicians for customers, with a year-on-year increase of 40%; (3) The company has a wide range of talents and is not limited to general positions. By the end of 2021, the number of employees dispatched by the company for outsourcing of registered flexible employment positions had reached 31678, an increase of 57% compared with the end of 2020. They are distributed in general positions such as finance, legal affairs and personnel, as well as professional positions such as industrial R & D, pharmaceutical R & D and it R & D.
“Hefrog” focuses on the operation of the third-party platform to promote the convenient development of human resources recruitment. The company’s human resources recruitment industry interconnection platform “hefrog” focuses on the third-party order making coordination, takes technology, data and cooperation as the core elements, and breaks through the single point cooperation mode between recruitment enterprises and customers based on the four directions of demand matching, data connectivity, decision-making intelligence and performance innovation, so as to form the industrial interconnection of the whole scene of human resources recruitment. In 2021, there were 6419 registered partners of hefrog platform, including 4261 participating partners; 57895 registered delivery consultants and 1135 annual delivery consultants; Transaction data doubled and business data increased by about 8 times.
Investment suggestion: the company is the leader of human resources service in China: 1) the main business of flexible workers has large growth space, which meets the needs of employees / enterprises at both ends under the current employment situation, and is expected to continue to increase. 2) The infrastructure construction of technology middle office and digital middle office is promoted, which is expected to reduce costs and increase efficiency; 3) The company’s digital / platform transformation is expected to open the second growth curve relying on new business, and give full play to the platform effect in the long term driven by technology. It is estimated that the net profit attributable to the parent company in 22, 23 and 24 years is RMB 326, 417 and 535 million respectively, and the corresponding PE is 28x / 22x / 17x respectively, maintaining the “recommended” rating.
Risk tip: covid-19 epidemic is repeated, the macroeconomic growth rate is lower than expected, and the R & D progress is lower than expected
