- 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.
- - Read this at SGinvestors.io -
- 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
- - Read this at SGinvestors.io -
- 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
- Read more at SGinvestors.io.
Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://maybanktrade.com.sg/.
Eric Ong Maybank Research | https://www.maybank-ke.com.sg/ 2023-02-24
Read also Maybank's most recent report:
2024-02-23 HRnetGroup - Solid Performance.
Previous report by Maybank:
2023-08-13 HRnetGroup - Wait For Dark Clouds To Pass.
Price targets by 3 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
