\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 62 Beijing Career International Co.Ltd(300662) )
Event:
Beijing Career International Co.Ltd(300662) released the annual report of 2021: the company achieved an operating revenue of 7.010 billion yuan in 2021, with a year-on-year increase of 78.3%; The net profit attributable to the parent company was 253 million yuan, a year-on-year increase of 35.5%; The net profit deducted from non parent company was 211 million yuan, with a year-on-year increase of 41.1%, and the performance was in line with expectations.
Key investment points:
Flexible employment continued the high boom. In terms of business: 1) flexible employment in the main business achieved a revenue of 5.931 billion yuan, a year-on-year increase of 90.6%, and continued a high boom throughout the year (a year-on-year increase of 80.6% in 2021h1); 2) The accounts receivable of medium and high-end talent search reached 699 million yuan, with a year-on-year increase of 51.7%. After excluding the low base effect in 2020, it also achieved a higher growth compared with 2019; 3) The recruitment process outsourcing business achieved a revenue of 146 million yuan, a year-on-year increase of 31.1%, which has recovered, but it has not yet returned to the level before the epidemic in 2019. 4) New technology services achieved a revenue of 23 million yuan, with a small base, a year-on-year increase of 78.5%.
H2 gross profit margin improved month on month, and R & D investment continued to increase. 1) Gross profit margin: affected by the continuous increase in the proportion of flexible employment revenue, the comprehensive gross profit margin decreased by 2.1pcts to 11.5% year-on-year, but benefited from the initial results of digital management and technology empowerment, the comprehensive gross profit margin H2 increased by 0.94% month on month compared with H1, and the corresponding gross profit margin of flexible employment increased by 1.2pct to 8.6% month on month; 2) Expense side: the sales expense rate decreased slightly by 0.1pct year-on-year; Under the scale effect, the management efficiency was significantly improved, and the management expense rate decreased by 1.5pcts year-on-year; R & D expenses increased by 166.6% year-on-year, the R & D expense rate increased by 0.2pcts, continued to increase R & D investment, and paid attention to the layout of new technology service products.
Overseas business accelerated recovery. The overall overseas business is developing healthily and accelerating the recovery trend is obvious; Investigo company in the UK alone had a year-on-year increase of 44.18% in revenue, 82.79% in recruitment business and 29.15% in flexible employment business.
In the future, technology empowerment will drive high performance growth. 2022 is the key year for the company’s digital transformation. It is expected that the company will continue to increase technology investment. On the one hand, continuously improve the layout of various technical service products (vertical recruitment platform, human resources industry interconnection platform, regional talent brain platform, talent to cloud, etc.) and cultivate diversified new performance growth points; On the other hand, science and technology will further enable the flexible employment of the main industry, the expansion of offline services of headhunting and RPO, and the coordinated development of online platform and SaaS product business.
Profit forecast and investment rating. We are optimistic about the company’s flexible employment and the continued high boom; At the same time, under the empowerment of science and technology, diversified new performance growth points are expected to gradually appear; Based on this, we maintain our core judgment on Kerui’s growth space, competitiveness and rapid business growth in recent years. The business growth momentum in 2022 is expected. It is estimated that the revenue in 2022 / 2023 / 2024 will be 10.392 billion yuan / 15.180 billion yuan / 22.221 billion yuan, with a year-on-year growth rate of 48.2% / 46.0% / 46.4%, and the net profit attributable to the parent company will be 333 million yuan / 439 million yuan / 558 million yuan, with a year-on-year growth rate of 32.0% / 31.6% / 27.2%. The corresponding dynamic PE: 28 / 21 / 17x, maintaining the “buy” rating.
Risk tips: manage boundary and bottleneck risks; Cash flow risk caused by advance: business fluctuation risk of key customers; Brain drain risk of headhunting consultants; The risk of recurrent outbreaks.
