The company released the third quarterly report of 2023: 1) in the first three quarters of 2023, the company realized revenue of 13.959 billion yuan / + 34.07%, net profit of 476 million yuan / + 8.28%, deducting non-return net profit of 372 million yuan / + 1.78%; 2) 2023 Q3: the company realized revenue of 4.749 billion yuan / + 31.00%, net profit of 131 million yuan / + 11.61%, and non-return net profit of 113 million yuan / + 1.27%.

Q3 gross profit margin fell slightly compared with the same period last year, and other expenses were basically stable. 1) 2023Q3: gross margin 10.70%/-1.56pcts, ratio of sales expenses to revenue 3.87%/-0.94pcts, ratio of administrative expenses to income 2.66%/-0.55pcts, ratio of R & D expenses to income 0.32%/-0.07pcts, ratio of financial expenses to income-0.65%/+0.43pcts 2) the first three quarters of 2023: the ratio of sales expenses to revenue (3.92%/-1.17pcts), the ratio of administrative expenses to revenue (2.53%/-0.43pcts), the ratio of R & D expenses to revenue (0.30%/-0.02pcts), the ratio of financial expenses to revenue-0.67%/+0.39pcts.

Investment suggestion: after the acquisition of Yuanmao shares, the company's outsourcing business is expected to strengthen the coordination of blue-collar employment outsourcing business, while continuing to expand the general job outsourcing needs of new and old customers. It is expected that outsourcing business will still drive the company to achieve rapid growth. Given a buy-A rating, the 6-month target price is 6.75 yuan, corresponding to a price-to-earnings ratio of 25X in 2023. We estimate that the company's income from 2023 to 2024 is 189.23 yuan and 25.347 billion yuan respectively, and the net profit is 6.06 yuan and 773 million yuan respectively.

Risk hints: the risk of macroeconomic fluctuations, the aggravation of market competition, etc.