HRnetGroup - Hiring Sentiment Continues To Improve
- Latest unemployment figures reflect a broad-based improvement in labour markets for both Singapore and North Asia, which should continue in 2022.
- We expect HRnetGroup (SGX:CHZ) to record 2H21F net profit of S$31m (+20% y-o-y) given continued strength in hiring volumes and rising salaries.
- HRnetGroup is debt-free with strong net cash of S$315m (~40% of current market cap) at end-1H21, which could support M&A activity.
- Reiterate ADD call on HRnetGroup with a target price of S$1.15. We think HRnetGroup is well positioned for further hiring momentum in FY22F as labour markets continue improving.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
Kenneth TAN CGS-CIMB Research | LIIM Siew Khee CGS-CIMB Research | https://www.cgs-cimb.com 2022-02-07 2022-02-07
Read also CGS-CIMB's most recent report:
2022-08-12 HRnetGroup - Hiring Still Robust In 1H22.
Previous report by CGS-CIMB:
2022-07-06 HRnetGroup - Labour Shortage A Boon.