Event: in 2020, the company achieved an income of 2.83 billion yuan, an increase of 23.7%, and an adjusted net profit of 183 million yuan, an increase of 36.5%. A dividend of HK $0.42 per common share is paid.
Comments:
Flexible employment: the number of people on duty is still growing rapidly. Flexible labor income was 2.58 billion yuan, an increase of 19.8%. If the impact of active reduction of service fees was excluded, the income growth rate was 28.9%. By the end of 2020, the number of people on duty had reached 35800, an increase of 42.4 percent, of which 87.8 percent served enterprises in the new economy.
The staff turnover rate fell, with a reduction of 0.9pct to 9 per cent. The gross profit margin was 7.4%, with a decrease of 1.5 pct, mainly due to the reduction in labor demand caused by the H1 epidemic, while the rent and wages of self-owned employees were relatively rigid.
Professional recruitment: offline recruitment affected by the epidemic, online traffic expansion. Professional recruitment achieved an income of 68 million yuan, an increase of 17.7%, and a gross profit margin of 39.6%, mainly due to the resumption of recruitment demand by new economy head enterprises after the H2 epidemic was brought under control, and the company took advantage of the opportunity to develop high-value customers. Recruiting 28600 people for clients in 2020, a decrease of 28.2%, was mainly due to the impact of the H1 epidemic and the shift to focus on high unit-price recruitment positions.
Business process outsourcing: a significant increase in revenue. The revenue of business process outsourcing was 150 million yuan, an increase of 191%. The high growth was mainly due to the spillover of flexible customers and the "partner Entrepreneurship Plan" that was tried in May 20. Two non-wholly-owned subsidiaries have been set up in Yingkou, Liaoning and Taian, Shandong, which are engaged in business process outsourcing. Shandong Taian Center was put into operation in November 20, with a capacity of about 1500 people.
The gross profit margin also increased by 0.9pct to 16.0%, mainly due to the improvement of management ability and social security relief from February to December of 20 years.
The rate of R & D and management expenses has been reduced. The sales expense rate slightly increased by 0.01pct to 1.89%, mainly due to the increase in sales staff bonuses brought about by the signing of high-value customers. The rate of management expenses was also reduced to 2.62% by 1.30pct, mainly due to the reduction of listing fees. The R & D expenditure rate was also reduced to 0.49% by 0.09pct, mainly due to the temporary reduction in the number of R & D personnel in some positions by H1.
Exchange gains led to better-than-expected results. Realized other income of 39.6 million yuan, of which 30.7 million yuan was exchange gains from investment in corporate bonds, large certificates of deposit or bank deposits, which exceeded our previous expectations.
Investment advice: flexible employment and professional recruitment H2 is significantly better than H1, business process outsourcing has increased significantly, and exchange gains have led to better-than-expected performance. The annual net profit for 2021-22-23 is forecast to be 2.54 shock 3.54 / 464 million yuan, with an increase of 39%, 39%, 31%, and is expected to correspond to a valuation of 15xmax 11xmax 8x, maintaining the "buy" rating.
Risk hints: the impact of macroeconomic downturn and short-term epidemic impact on the human resources service industry; flexible employment business development is more dependent on large customers.