[investment points]
The company publishes its mid-2021 report. In 2021, H1 Company achieved an operating income of 2.128 billion yuan, an increase of 78.0% over the same period last year; a net profit of 75 million yuan, an increase of 41%; and an adjusted net profit of 81 million yuan, an increase of 52.8% over the same period last year.
The high growth of flexible labor revenue and employees has led to the continuous growth of the company. From a business-by-business point of view, the revenue of H1 company's comprehensive flexible employment / professional recruitment / other human resources solutions in 2021 was RMB 20.70 million, an increase of 77.6%, 151.5% and 7.5% respectively over the same period last year, and the revenue share was 97.3%, 2.3% and 0.5%, respectively. Among them, at the end of June 2021, the number of employees with comprehensive flexible employment reached 45200, an increase of 48.8% over the same period last year. The number of employees engaged in flexible employment and business process outsourcing were 41000 and 4300 respectively. In the first half of 2021, the company recruited 22000 people for clients, a sharp increase of 152.7% compared with the same period last year. The company's flexible employment and recruitment business has greatly expanded, driving a steady increase in revenue.
The gross profit margin is under pressure periodically, and the sales expenses are invested in the expansion of the talent pool. In 2021, the overall gross profit margin of H1 company was 7.35%, which was-0.99pct compared with the same period last year, which was mainly affected by the decline of flexible labor margin. Among them, the gross profit margin of comprehensive flexible employment / professional recruitment / other human resources solutions is 6.32%, 35.88%, 79.55%, respectively, compared with the same period last year. The reduction in the gross profit margin of flexible labor is mainly due to the company's initiative to reduce service rates for strategic customers. From the cost point of view, the sales / management / R & D expenses of H1 Company in 2021 were 0.47 billion yuan, an increase of 114.7%, 39.7%, 22.2%, respectively, compared with the same period last year. The increase in sales expenses was mainly invested in the construction of talent pool expansion; the sales / management / R & D expense rates were 1.88%, 2.22%, 0.34%, respectively, and + 0.32pct/-0.61pct/-0.16pct, respectively.
In June 2021, the company announced that its largest customer would end its flexible employment service and become self-employed, which had a great impact on the company's short-term performance, but in the long run, as a traditional spiritual worker leader, the company still has obvious advantages in recruitment ability and industry popularity. At the same time, the company is firmly determined to actively expand and upgrade: 1) the company will gradually expand the coverage of diversified industries and jobs, moving closer to hot industries such as banking, finance, high-end manufacturing, new energy vehicles, and seeking rapid development; 2) continue to lay out human resources SaaS products and recruitment platform business, and accelerate iterative technological and ecological upgrading. 3) in September 2021, the company bought 51% of each of Jiangnan Jinke and Shanghai leading time for 80 million yuan, and cut into the flexible labor market of City Commercial Bank and Agricultural Commercial Bank. The company is expected to continue to increase the market share of flexible employment business through mergers and acquisitions and maintain its leading position.
[investment advice]
As the traditional leader of flexible employment industry, the company has obvious advantages in recruitment ability and high visibility in the industry.
Affected by the termination of flexible employment services for major customers, we will actively expand high-tech industries and jobs, and increase market share through mergers and acquisitions. From 2021 to 2023, we estimate that the operating income of the company will be 40.03, 37.92 and 4.893 million yuan, respectively, with a year-on-year growth rate of 41.43%, 5.27%, 29.06%, 1.43%, 1.55 and 1.84 million yuan, respectively, and a year-on-year growth rate of-21.55%, 8.34%, 18.64% and 1.18 yuan per share, respectively. Corresponding to the PE is 10-9-8 times, given the "overweight" rating.
[risk Tip]
The epidemic repeatedly affects the demand of flexible employment industry.
Policy risk of human resources industry
Competition in the industry has intensified.
