HRnetGroup - DBS Research 2023-02-27: Uplift From North Asia

• HRnetGroup (SGX:CHZ)'s FY22 revenue of S$611.8m (+3.6% y-o-y) was within our expectations. Revenue from the professional recruitment segment was up 2.4% y-o-y, despite an 8% decline in professional recruitment placements as HRnetGroup focused on higher value assignments. Gross profit per placement increased by ~12%, which was largely attributed to the economic recovery and higher wages.
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• Government grants and subsidies have also tapered off from $8.9m in FY21 to $7.0m in FY22. Underlying NPAT (net profit after tax less gain [loss] from financial assets measured at FVTPL) was up 18.6% y-o-y.
• HRnetGroup proposes a final dividend of 1.87 cents/share. Together with the interim dividend of 2.13 cents/share, total dividend per share for FY22 amounts to 4 cents/share, comparable to 4 cents/share declared in FY21 and implying a yield of just under 5% for the year. See HRnetGroup's dividend dates.

Our Thoughts on HRnetGroup

No imminent threat to HRnet, as the Singapore labour market remains tight despite easing momentum.

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Above is the excerpt from report by DBS Group Research.
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