Foreign service holding ( Shanghai Foreign Service Holding Group Co.Ltd(600662) )
The company released its 2021 annual report: 1) in 2021, it achieved a revenue of 11.454 billion yuan / yoy-47.64%, mainly due to the adjustment of the recognition method of talent dispatch business income and cost; The net profit attributable to the parent company is 532 million yuan / yoy + 7.74%, and the net profit not attributable to the parent company is 500 million yuan / yoy + 9.46%. 2) Cash flow: the net cash flow from operating activities was 2.119 billion yuan /yoy+214.60%, mainly due to the increase in year-end performance pending payments received from customers at the end of 2021. 3) Dividend: cash dividend of RMB 2.00 per 10 shares, totaling RMB 453 million (including tax).
The growth of emerging businesses accelerated, and the revenue growth of business outsourcing services reached 40%. 1) Personnel management services (accounting for 10.12% of the overall revenue) achieved a revenue of 1.159 billion yuan / yoy + 8.67%, with a gross profit margin of 81.19 / – 3.60pct. On the one hand, it is the increase of business scale. On the other hand, it is mainly due to the reduction of the comparison base due to the policy reduction of social security and rent due to the epidemic in the previous year. 2) Talent dispatch service (accounting for 1.16% of the overall revenue) achieved a revenue of 133 million yuan / yoy-99.00%, with a gross profit margin of 76.10% / + 75.04pct, mainly due to the adjustment of the recognition method of talent dispatch business revenue and cost. 3) The gross profit margin of the service income is 1.9092 billion yuan (yot + 3.6%) and the gross profit ratio is 1.9092 billion PCT / -% of the total revenue. 4) Business outsourcing services (accounting for 68.76% of the overall revenue) achieved a revenue of 7.99 billion yuan / yoy + 40.92%; The gross profit margin is 1.99% / + 0.13. 5) The revenue from recruitment and flexible employment services was 644 million yuan / yoy + 22.77%, and the gross profit margin was 7.85% / – 0.7pct.
Affected by the adjustment of the recognition method of talent dispatch income, the net interest rate increased by 2.7pct to 5.1%, and the fulfillment rate of annual performance commitment reached 138.06%. 1) Overall gross profit margin: 15.15% / + 7.63pct, mainly due to the adjustment of the recognition method of talent dispatch income; 2) Expense rate: the sales expense rate is 6.12% / + 2.87pc, and the sales expense is stable as a whole; The R & D expense rate is 0.30% / + 0.19pct, which is mainly due to the increase of new project investment; The management expense rate is 3.28% / + 1.65pct, and the expense control is good. 3) Other income: the income of 36 million yuan / yoy + 7.06% in 21 years is mainly due to the reduction of external sales and more internal R & D work of the group by Shanghai Foreign Service Information Technology Co., Ltd., a wholly-owned subsidiary of the company’s foreign service group. 4) Net profit: the net profit margin is 5.1% / + 2.7pct, which is mainly due to the adjustment of the recognition method of talent dispatch income. The actually completed net profit is 584 million yuan, 146 million yuan higher than the net profit promised to return to the parent in 2021, and the achievement rate of performance commitment is 138.06%.
Investment suggestion: Buy-A investment rating, 6-month target price of 7.56 yuan. It is estimated that the overall revenue growth rate in 202223 will be 34.7% and 37.9%; The net profit attributable to the parent company was 600 million yuan and 720 million yuan, with a corresponding growth rate of 13.1% and 19.2%.
Risk tips: covid-19 pneumonia, intensified industry competition, rising labor costs, macroeconomic fluctuations, etc
