\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 62 Beijing Career International Co.Ltd(300662) )
Event: the company announced its annual results for the past 21 years, achieving a revenue of 7.01 billion yuan, an increase of 78.3%, a net profit attributable to the parent of 250 million yuan, an increase of 35.6%, and a net profit of 230 million yuan, an increase of 34.5%, after deducting the cost of employee restricted shares and non recurring profits and losses.
Comments:
Headhunting and RPO are growing rapidly. In the past 21 years, the search for middle and high-end talents focused on the two main lines of region and industry, focused on business districts and job opportunities, and achieved an income of 700 million yuan, an increase of 51.7% and a gross profit margin of 0.8pct to 37.2%; Recruitment process outsourcing continued to implement the guidance of key customers, strengthened the ability to integrate the resource advantages of a variety of internal and external products, and achieved an income of 150 million yuan, an increase of 31.1% and a decrease of 1.3pct to 43.2% in gross profit margin.
China’s flexible employment has doubled. In the past 21 years, with the continuous technical empowerment of the service center and the technology center and the continuous improvement of the matching efficiency of post factory recruitment, the income of flexible employment was 5.93 billion yuan, an increase of 90.6%, of which the income of flexible employment in China increased strongly, an increase of 115% +. By the end of the 21st century, there were 32000 management outsourcing employees, an increase of 57% at the same time. The gross profit margin decreased by 1.1pct to 8.1% at the same time.
Investigo recovered strongly. With the normalization of overseas epidemic, overseas income has recovered significantly. Investigo achieved a revenue of 1.49 billion yuan, an increase of 44.2%, an increase of 20.5% over 19 years, exceeding the pre epidemic level, of which the recruitment business increased by 82.8% and the flexible employment business increased by 29.2%. Considering the equity ratio of 52.2%, the company contributed a net profit of 58.024 million yuan, with an increase of 214.8%. Profitability rebounded significantly, and the net interest rate increased by 2.1pct to 3.9%.
Good cost control during the period. The company’s sales expenses shall be reduced by 0.1pct to 2.4% at the same time; The rate of administrative expenses decreased by 1.5pct to 3.1% at the same time; The R & D expense rate increased by 0.2pct to 0.6% at the same time, mainly due to the continuous investment in information construction and digital transformation; The financial expense ratio increased by 0.3pct to 0.2% at the same time, mainly due to the increase of loan interest expenditure and the increase of unrecognized financing expenses of lease liabilities.
Enabling science and technology to build an ecological platform. Continue to invest in upgrading the construction of data center and technology center, upgrade the “CTS” internal business management system, and improve the efficiency of resume analysis, screening, person post matching and other links. The company further gets through the data of vertical recruitment platforms such as internal health, and obtains and accumulates b-end customers and C-end candidate resources in combination with partner ecological platform and human resources industry interconnection platform. Increase the construction of human resources Internet platform, including the same medical pulse, caidaoyun, hefrog and urban talent brain.
Profit forecast and investment rating: the performance of the annual report for 21 years is in line with expectations, and the three business segments are growing rapidly. In particular, China’s flexible employment still maintains a high outlook. It is estimated that the company’s EPS from 2022 to 24 will be 1.68/2.15/2.71 yuan / share respectively, and the corresponding PE of the current stock price is 28x / 22x / 17x, maintaining the “buy” rating.
Risk factors: the impact of overseas epidemic on investigo’s income and profit, and the impact of repeated epidemic in China on headhunting and RPO business.
