HRnetGroup - DBS Research 2022-09-16: Homing In On Hot Jobs; Re-instate Coverage With BUY

• Reinstate coverage on HRnetGroup (SGX:CHZ) with BUY recommendation and target price S$1.08, or 39% upside.
• The labour market in Singapore remains tight and we think that HRnetGroup is well poised to benefit as a dominant player in a fragmented market. Although the overall macroeconomic outlook has weakened, HRnetGroup has proven its ability to navigate economic downturns with its twin engines and diversified business.
• - Read this at SGinvestors.io -

(1) Singapore job market still tight despite global headwinds

Singapore’s labour market likely to stay resilient in 2H22, albeit slowing growth in resident employment.

• - Read this at SGinvestors.io -
• While residents continued to secure jobs, particularly in growth areas such as information and communications, professional services, and financial services, resident employment will likely experience relatively slower growth going forward as the readily available resident labour supply shrinks on the back of the improving unemployment situation.
• Macroeconomic headwinds could also lead to subdued growth going forward.

Job vacancies expected to stay elevated in 3Q22, a positive for HRnet.

• Read more at SGinvestors.io.

Andy SIM CFA DBS Group Research | Singapore Research Team DBS Research | https://www.dbs.com/insightsdirect/ 2022-09-16 SGinvestors.io

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