\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 62 Beijing Career International Co.Ltd(300662) )
In 2022q1, the parent company’s performance increased by 36%, which is located in the performance forecast center, which is in line with expectations. In 2022q1, the company’s revenue was 2.192 billion yuan, a year-on-year increase of + 50.92%; The performance attributable to the parent company was 52.57 million yuan, a year-on-year increase of + 35.57%; Deduct 47.71 million yuan of non parent performance, a year-on-year increase of + 40.87%, which is located in the performance forecast center, in line with expectations; EPS is 0.27 yuan. Net cash flow from operating activities is – 126 million yuan / + 58.04%.
The flexible employment landscape continued to be verified, the overseas business recovered well, and the R & D and promotion expenditure of the new platform continued to increase. In 2022q1, the revenue of headhunting business was + 31.51% year-on-year. Excluding overseas, it is expected to increase by about 10% year-on-year. The entry rhythm of China’s Department of epidemic disturbance has been delayed, but the growth of headhunting business in the UK is fast; RPO business is + 10.20% year-on-year, which is also expected to be disturbed by the epidemic; Flexible employment business increased by + 60.03% year-on-year, including 31741 employees / + 35.6% at the time point of job outsourcing. During the period, 91680 employees / + 36.8% were dispatched in total. The growth rate of revenue was higher than that of the cumulative number of dispatched personnel, which was driven by the increase of project rates. If excluding overseas, China’s flexible employment is expected to increase by 60% year-on-year; The technical service business was + 23.42% year-on-year, and the number of charging customers of hefrog platform and medical pulse reached 3480. In terms of subregions, overseas business recovered strongly, with investigo’s revenue + 71.88% year-on-year. In terms of costs and expenses, the gross profit margin in 2022q1 was 9.81% / + 0.38pct, the net profit margin was 3.34% / + 0.14pct, and the expense rate during the period was + 0.09pct, of which the sales / management / Finance / R & D rates were + 0.36 / – 0.49 / – 0.05 / + 0.27pct respectively. In 2022q1, the team of production and research technicians reached 350 people / month on month increase of 11 people (194 people at the end of 2020). During the period, we will continue to increase the R & D and promotion expenditure of new technology platforms.
Short term business development or collaborative technology development. The recurrence of the epidemic at the end of March actually had an impact on the company’s headhunting and RPO business. Combined with the recent epidemic situation in China, it is expected that 22q2 business will still be subject to the epidemic. The company’s performance under the epidemic situation shows that its flexible business obviously has the attribute of moderate countercyclical (20h1 revenue + 31% year-on-year); While headhunting and RPO businesses are under pressure, but with the resumption of work and production, the business also shows a good recovery trend. On the basis of the traditional product “front store and back factory” mode, the company improves the operation efficiency through digital management and technology empowerment, and makes great efforts to develop new technology products such as medical pulse Tongdao, Kerui talent to cloud, hefrog and regional talent brain platform to reach regional long tail customers. Under the exploration of continuous empowerment of science and technology, the company is expected to further optimize the operation efficiency and consolidate its core competitiveness.
Risk tips: macro, epidemic and other systemic risks; Intensified market competition; Business growth is less than expected.
Investment suggestion: comprehensively consider the appropriate countercyclical attribute of flexible employment and the cost investment rhythm of new technology platform, and maintain the EPS of RMB 1.63/2.11/2.65 for 22-24 years, corresponding to pe25 / 19 / 15x. Under the disturbance of China’s epidemic situation, there is pressure on short-term operation, but the high outlook of flexible employment continues to be verified. RPO & headhunting business needs to track the epidemic situation and macro changes. On the whole, the company’s long-term growth logic is still stable and maintains the company’s “overweight” rating. Recently, the correction of valuation price ratio has gradually become prominent. It is suggested to pay attention to bargain hunting opportunities.
