HRnetGroup - CGS-CIMB Research 2022-02-25: The Best Is Yet To Come

HRnetGroup - The Best Is Yet To Come

  • HRnetGroup (SGX:CHZ)'s 2H21 net profit growth (+14% y-o-y) was driven by strong gross profit contribution from professional recruitment (PR, +35% y-o-y) and flexible staffing (FS, +45% y-o-y).
  • We expect professional recruitment (PR) contribution to continue strong into FY22F, amid rising salaries and placement volumes. flexible staffing (FS) volumes expected to remain firm.
  • We like HRnetGroup as a proxy for continued labour market recovery across Asia.
  • We roll over our valuation to FY23F and maintain our target price at S$1.15, pegged to ~17x FY23F P/E (+1 standard deviation from 4-year historical mean, in view of expected recovery in labour markets). With net cash at ~45% of current market cap,HRnetGroup trades at an attractive 6x FY23F P/E (ex-cash).

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @

Kenneth TAN CGS-CIMB Research | LIIM Siew Khee CGS-CIMB Research | 2022-02-25

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.

Price targets by other brokers at HRnetGroup Target Prices.
Listing of research reports at HRnetGroup Analyst Reports.

Relevant links:
HRnetGroup Share Price History,
HRnetGroup Announcements,
HRnetGroup Dividends & Corporate Actions,
HRnetGroup News Articles

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