Event: revenue in the first three quarters was + 26% compared with the same period last year, and the leading performance under the epidemic showed resilience. The company announced that in the three quarters of 2022, the operating income from January to September was 10.412 billion yuan, an increase of 25.70% over the same period last year; the net profit was 440 million yuan, an increase of 10.05% over the same period last year; the company realized operating income of 3.625 billion yuan, an increase of 27.13% over the same period last year; and the net profit from home was 117 million yuan, a decrease of 9.26% over the same period last year.
2022Q3, the company's gross profit margin is 12.26%, month-on-month ratio is-2.33pct; the company's sales expense rate / management expense rate / R & D expense rate is 4.81%, respectively, 3.21% and 0.39%, respectively, and-0.92/+0.26/+0.02pct.
As a leading enterprise in the field of human resources services in China, the company has maintained resilience under the impact of the epidemic, continued to make efforts in the field of business outsourcing, and maintained double-digit revenue growth.
Traditional business accelerated digital upgrading, and R & D investment was + 68% compared with the same period last year. The company continues to promote the "digital foreign service" strategy to upgrade and transform the traditional human resources business, creating three ecological platforms: the foreign service cloud platform, the "cohesion" industry entrustment trading platform, and the business backup service platform to strengthen business capabilities. Under the impact of the epidemic, the company uses integrated digital services as the engine to meet the needs of customers' telecommuting, and the performance shows considerable resilience.
In the first three quarters of 2022, the company invested 32.83 million yuan in R & D, an increase of 67.61% over the same period last year, helping the company's digital transformation and upgrading.
The joint Donghao Lansheng Fund acquires 51% of Yuanmao shares to consolidate its advantages in the field of flexible employment and business outsourcing vertical business: Yuanmao Services focuses on the field of blue-and gray-collar business outsourcing of domestic enterprises. customers are mainly distributed in automobile manufacturing, food processing, logistics, pharmaceutical, FMCG and other industries, which are fully complementary to the company's current business layout of providing personnel management services for white-collar workers of foreign-funded enterprises. In 2021, the growth rate of outsourcing services / recruitment and flexible employment services in foreign service holding business was 41% and 23% respectively. This acquisition will help give full play to the synergy between the two and consolidate the company's leading position in integrated human resources services solutions.
Investment suggestion: foreign Service Holdings has ploughed the domestic human service industry for nearly 40 years, providing one-stop human resources services, the company's business network throughout the country, strong financial strength, obvious comprehensive advantages. The company's traditional business personnel management and talent dispatch steady contribution cash flow; emerging business outsourcing, flexible employment and other areas to open up room for growth. We expect the company to achieve net profit of 6.27 yuan / 812 million yuan respectively from 2022 to 2024, and the previous PE valuation is 19x/17x/15x, maintaining the "overweight" rating.
Risk hints: the risk of fierce market competition, the risk of epidemic situation exceeding expectations, and the risk of tightening policy supervision.