Summary of events: 22H1 realized revenue of 6.786 billion yuan / yoy+24.95%; net profit of 322 million yuan / yoy+19.29%, net profit of 293-338 million yuan in line with performance forecast, deduction of non-return net profit of 254 million yuan / yoy+11.54%, non-net profit of 231million-267 million yuan in line with performance forecast; non-recurrent income of 69 million yuan is mainly government subsidy The net cash flow of operating activities-373 million yuan and 337 million yuan in the same period last year, is mainly due to the payment of the end-of-year performance salary received by the company during the reporting period. 22Q2 realized revenue of 3.261 billion yuan / yoy+21.73%; return net profit of 149 million yuan / yoy+6.52%; deducted non-return net profit of 142 million yuan / yoy+33.79%; non-recurrent income of 0.07 billion yuan / net cash flow of yoy-77.94%; operating activities-110 million yuan, compared with-42 million yuan in the same period last year.
Sub-business: 22H1 personnel management / talent dispatch / compensation and benefits / recruitment flexible employment / business outsourcing / other revenue 6.05x71max 7.73max 4.8729pm 20 million, business growth in all sectors, flexible employment and outsourcing business continued to maintain a rapid growth rate for 21 years, payroll and tax business growth reached double digits compared with the same period last year.
Business situation:
1) 22H1 has added 12 major customers with more than 1000 people, 15 customers with more than 300 people through competitive marketing, and completed a total of 17 school-enterprise cooperation projects.
2) multiple measures to promote transformation: ① strategic adjustment: the proportion of revenue from emerging businesses such as compensation and benefits, recruitment and flexible employment and outsourcing increased by 2.1pct; ② focused on domestic enterprise customers and successfully developed 3 state-owned / central enterprise customers, the industry leader; ③ promoted overseas layout: signed 12 new overseas customers and completed the establishment of FSG TG Thailand ④ develops the national market outside Shanghai: the national business share outside Shanghai increases 4pct.
3) Information enabling: the number of customers of cloud platform enterprises reached 11186, and the coverage rate of self-operated customers in Shanghai reached 63.26%. The number of customers opened by Jane Manpower increased by 53, a total of 706. provide electronic labor contract signing services for 9780 people through cloud platform during the epidemic.
4) increase the pace of investment and mergers and acquisitions: ① announced that it intends to acquire 51 per cent of Yuanmao shares to make up for its shortcomings in blue-gray collar jobs in the outsourcing field; ② also established a new Shanghai Xianyi Human Resources and 51 per cent stake; ③ joined hands with overseas Chinese Town to set up a new Shenzhen Chinese service with a 51 per cent stake.
Investment suggestion: the company is the comprehensive service leader of domestic human resources, with a leading brand status, global service network, rich customer resources and innovative technology platform. With the simultaneous development of cross-selling, digital transformation and emerging business extension mergers and acquisitions in the future, there is room for continuous improvement in revenue performance. Leaving aside the acquisition part for the time being, we estimate that the company's 2022-24 revenue of $146x192,000,000 and net profit of $60,000,000 will be $80,000,000. The current share price corresponds to a 22nd-24 PE of 23x20x17x, maintaining a "buy" rating.
Risk hints: risks such as uncertainty of the impact of the epidemic, macroeconomic fluctuations, intensified competition in the industry, lower-than-expected acquisitions, etc.