HRnetGroup - Maybank Research 2023-02-24: Compounder With Cash

HRnetGroup - Compounder With Cash

  • HRnetGroup (SGX:CHZ)'s 2H22 PATMI of S$32.9m (+11.4% y-o-y) was in line with our and consensus estimates despite the lower-than-expected revenue of S$297.6m (-5.7% y-o-y). The variance was mainly due to the scale back of COVID-related flexible staffing (FS) business in Singapore and a general slowdown in professional recruitment (PR) hiring in Singapore, Greater China and Japan.
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  • We trim our FY23-24E forecasts by 3-5% on lower placement volumes and introduce FY25E estimates. Maintain BUY on HRnetGroup with a lower target price at S$1.04, still based on 15x FY23E P/E.

Pockets of opportunities despite cautious market

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  • In 2H22, flexible staffing (FS) segment turnover also declined 4.8% y-o-y to S$250.3m with the scale-back of COVID-related staffing volume in the Singapore healthcare sector. This caused a slight dip in gross profit margin to 14.4% (-1,5ppt y-o-y) in FY22, partly mitigated by higher business volume in other parts of Asia, which resumed normalcy during the year.
  • See HRnetGroup's announcement dated 23 Feb 2023.

China reopening to drive North Asia market

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Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @

Eric Ong Maybank Research | 2023-02-24

Previous report by Maybank:
2022-10-10 HRnetGroup - Acquires Stake In Fintech Start-Up Octomate; Adding An External Wing.

Price targets by 4 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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