\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 62 Beijing Career International Co.Ltd(300662) )
Core view: the company’s performance is in line with expectations, which is confirmed by the prosperity of linggong business. Repeated outbreaks in China only affect the recognition rhythm of flexible work business income, and do not affect the logic of high prosperity.
Maintain the profit forecast and maintain the “overweight” rating. Considering the continuous prosperity of linggong business and the initial results of the company’s digital technology products, we maintain the forecast of net profit attributable to the parent company of RMB 327 / 451 / 594 million in 22-24 years, with a year-on-year growth rate of 30% / 38% / 32% and pe24 1 / 20.5 / 15.6, maintain the “overweight” rating.
The performance was in line with expectations, and the net profit attributable to the parent company increased by 35.6% year-on-year. The company released the 22q1 quarterly report, achieving a revenue of 2.192 billion yuan, a year-on-year increase of 50.9%, and a net profit attributable to the parent of 53 million yuan, a year-on-year increase of 35.6%. The actual performance is in the median range of the performance forecast. Thanks to the initial achievements of digital construction and the high-end expansion of flexible employment posts, the company’s 22q1 comprehensive gross profit was 9.8%. Under the condition of continuous improvement of the proportion of flexible employment revenue, the comprehensive gross profit still increased by 0.4pct year-on-year. The scale of the company continued to expand. At the end of 22q1, the number of self owned employees was 3338, compared with 2717 in the same period last year, with a year-on-year increase of 621. In this case, the cost control is good, the sales expense rate is 2.24%, with a year-on-year increase of 0.38pct, and the management expense rate is 2.28%, with a year-on-year decrease of 0.47pct. R & D investment continued, with R & D expenses of 14.64 million in 22q1, a year-on-year increase of 156.4%. The company’s digital transformation can be expected.
The basic flexible work business remains strong, and overseas businesses benefit from the recovery of the epidemic. The growth rate of the company’s three core businesses, flexible employment / headhunting / RPO business 22q1, was 60.0% / 31.5% / 10.2% year-on-year respectively, which was continuously confirmed by the flexible employment climate. Among them, the overseas business performed well and benefited from the recovery of the epidemic. The profit and loss of minority shareholders in 22q1 was 21 million, a record high. We judged that most of it came from investigo’s contribution. Investigo22q1’s revenue was 495 million yuan, a year-on-year increase of 71.9%. In terms of flexible employment business, the company has 31741 employees at the end of 22q1, an increase of 8340 compared with 21q1. The company continues to expand in professional and technical posts (such as technology R & D and technology operation and maintenance). In the future, professional and technical posts will continue to improve customer orders and gross profit.
The epidemic situation does not affect the judgment of high prosperity of the track. At the current time point, we judge that there are two factors to suppress the stock price. First, the market is repeatedly worried about the epidemic in China. We believe that the repeated epidemic in China will only affect the rhythm of revenue recognition of flexible labor business, not the long-term demand and prosperity of the business, and will not undermine the long-term logic of flexible employment. Second, the market is worried about the prosperity of some of the company’s customers. We believe that flexible employment is a universal human resources business model for the whole industry, which is still in an early stage of development in China. Therefore, when the market penetration is not saturated, the flexible employment model will be switched between industries with different boom degrees, so as to ensure the sustainable prosperity of this model.
Risk tips: (1) policy fluctuations in the human resources industry; (2) The growth rate of flexible employment business is lower than expected; (3) The company’s digital construction failed to achieve the purpose of reducing cost and increasing efficiency.
