\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 62 Beijing Career International Co.Ltd(300662) )
Event overview: the annual performance increased by 35.55% year-on-year and the upper limit of advance notice (24.95% – 35.95%)
Throughout the year, in 2021, the revenue was 7.010 billion yuan / yoy + 78.29%, the net profit attributable to the parent was 253 million yuan / yoy + 35.55%, the net profit not attributable to the parent was 211 million yuan / yoy + 41.09%, and the net profit not attributable to the parent was 226 million yuan / yoy + 34.4% when the equity incentive fee was added back. The gross profit margin of 21 years was 11.5%, with a year-on-year increase of – 2.0pct, mainly due to the increase of the proportion of flexible employment income to 85%, and the rate of sales / management / R & D / financial expenses was 2.4% / 3.1% / 0.6% / 0.2%, with a year-on-year increase of – 0.1 / – 1.5 / + 0.2 / + 0.3pct; The net cash flow from operating activities in 21 years was – 42.73 million yuan, mainly due to the high growth of flexible employment. In the fourth quarter alone, 2021q4 achieved a revenue of 1.831 billion yuan / yoy + 53.27%, a net profit attributable to the parent of 64 million yuan / yoy + 22.57%, and a net profit not attributable to the parent of 43 million yuan / yoy + 5.35%. 21q4 gross profit margin is 12.7%, year-on-year + 0.2pct, sales / management / R & D / financial expense rate is 3.4% / 4.1% / 0.8% / 0.03%, year-on-year + 0.7 / – 0.2 / + 0.5 / + 0.3pct; 21q4 net cash flow from operating activities was 269 million yuan, and most of the funds have been recovered. From the perspective of splitting outside China: the annual income of China / investigo was 5.522/1.489 billion yuan respectively, with a year-on-year increase of 90% / 44%, and the net profit attributable to the parent company was 222 / 30 million yuan respectively, with a year-on-year increase of 25.7% / 215%. Investigo’s performance recovered significantly, driving the overall performance growth rate of more than 35%. By the end of the 21st century, the company had 3384 employees (China / overseas 3067 / 317), a year-on-year increase of 27%, including 339 R & D personnel, a year-on-year increase of 75%.
Flexible employment business: the annual revenue / gross profit increased by 91% / 67%, and the gross profit margin improved month on month in the second half of the year
Growth level: in 2021, flexible employment achieved a revenue of 5.931 billion yuan, a year-on-year increase of 91%, of which China / investigo increased by 116% / 29% year-on-year respectively, and China is estimated to account for 80%. Considering that there was a low base affected by social security relief in 20 years, so the growth of head and gross profit is more meaningful. By the end of 21, the number of outsourcing employees in flexible employment posts was 31700, with a year-on-year increase of 57% (professional and technical IT R & D / factory technician / pharmaceutical R & D Posts increased by 90% / 91% / 61% respectively), and the number of outsourcing employees dispatched in 21 years was 311800, with a year-on-year increase of 64%; And the gross profit of flexible employment in 21 years was 478 million yuan, with a year-on-year increase of 67%. In the first and second half of the year, the gross profit of 21h1 / H2 increased by 49% / 81% respectively. At the level of gross profit margin: the gross profit margin of flexible employment in the past 21 years was 8.1%, down 1.1pct year-on-year, which is expected to be related to the low income base under the social security exemption last year, and may also be related to changes in positions and customer structure; In the first and second half of the year, the gross profit margin of 21h1 / H2 was 7.4% / 8.6% respectively, and increased by 1.2pct month on month in the second half of the year, benefiting from the initial results of digital management and technology empowerment, and is expected to continue to benefit in the future. Customer structure: the company has 6196 overall paying customers, with a year-on-year increase of 17%. The sales of the top five customers account for 36.7%, with a year-on-year increase of 8.7pct. The sales of the first largest customer account for 23.7%, with a year-on-year increase of 6.5%, and the revenue growth of the report end is 146%. On the basis of maintaining the share of large customers, the company will expand the “specialized, special and new” and fast-growing long tail customer resources in key business districts in the future.
Recruitment business: maintain the trend of economic recovery throughout the year, and the growth rate of headhunting / RPO revenue is 52% / 31%
In 2021, the headhunting / RPO business achieved a revenue of 699 / 146 million yuan, with a year-on-year increase of 52% / 31%. It is estimated that the headhunting revenue in China / investigo increased by 41% / 83% year-on-year respectively, and it is estimated that China accounts for 70%. The gross profit margin of headhunting / RPO business in 21 years was 37.2% / 43.2%, with a year-on-year change of + 0.8pct / – 1.4pct. In the past 21 years, the company has successfully recommended 35000 middle and high-end managers and professional technicians, with a year-on-year increase of 40%. On the one hand, the headhunting business focuses on business circles and job opportunities, making continuous breakthroughs in the fields of semiconductor, cloud computing, new energy, electronic manufacturing, artificial intelligence and so on; On the other hand, RPO business continues to implement the guidance of key customers and strengthen the integration of various capabilities.
Technical service business: the annual revenue increased by 79% to 22.57 million and the gross profit margin was 25%
Medical pulse Tongdao (vertical recruitment platform in the field of great health): at the end of 21 years, the number of enterprise users of the platform exceeded 5000, the number of enterprise users exceeded 11000, there were more than Shanghai Pudong Development Bank Co.Ltd(600000) active candidates in the platform and private domain, and the monthly activity (MAU) reached more than 300000. Kerui came to cloud SaaS (hrsaas with attendance and salary tax as the core): at present, it has provided services to more than 200 enterprises, and the “recruitment integration” SaaS products for the recruitment service of public institutions have served more than 800 customers. Hefrog (recruitment industry internet platform): within 21 years, the platform has 6419 registered partners, 57895 registered delivery consultants, 4261 partners and 1135 annual delivery consultants. By the end of the period, the original platform had recruited 11617 middle and high-end posts and 533 delivery posts, with a delivery conversion rate of about 4.59%; At present, the product integration of “hefrog” team for medium and high-end recruitment and “instant box” communication platform for human resources partners has been completed. Regional talent brain platform: more than 3000 enterprises are linked by the two platforms of Beijing Yizhuang Development Zone and “employment cloud supermarket” in Jinnan District of Tianjin.
Profit forecast and investment suggestions: the company insists on continuously seizing the market with “front store and back factory”, “thousands of people and thousands of Posts”, “vertical business circle” and “science and technology empowerment”, and the technology investment of more than 110 million yuan in 21 years is expected to lay the foundation for the future technical effect. It is expected to maintain the performance growth of 25% – 35% on the basis of continuous R & D investment in 22 years. We believe that there is no need to worry about the impact of large factory layoffs on outsourcing business in the short term, On the one hand, these large factories are not the core customers of Kerui. On the other hand, Kerui has strong recruitment ability, so the customer structure is more diversified. In the medium and long term, we need to pay attention to the outsourcing head and cost budget changes of key customers, and pay attention to Kerui’s mining of medium and large customers and online capture of long tail customers. It is estimated that the company’s net profit attributable to the parent company in 22-24 years is RMB 325 / 421 / 547 million, with a year-on-year growth rate of 28.7% / 29.7% / 29.9%, corresponding to 27 / 21 / 16 times of PE in 22-24 years, which is lower than the historical valuation, and maintains the “buy” rating.
Risk tips: mode conversion risk, brain drain and training risk, policy and regulation change risk
