Renrui released its annual report that the annual income was 2.83 billion yuan, an increase of 24%, a gross profit of 270 million, a gross profit of 9.6%, a decrease of 0.9%, and an operating profit of 200 million, an increase of 68%. Excluding the fair value loss of compound financial instruments, listing expenses and share option expenses, the adjusted net profit increased by 37%. By the end of the 20th, the number of flexible workers on duty was 36000, an increase of 42 per cent.
Of this total, 20H2 achieved an income of 1.63 billion yuan, an increase of 35%, a gross profit of 170 million, a gross profit of 10.5%, an increase of 0.2%, an operating profit of 150 million, an increase of 142%, and an adjusted net profit of 130 million, excluding the fair value loss of composite financial instruments, listing expenses and share option expenses.
From a business-by-business point of view, flexible employment / professional recruitment / human resources solutions (including business process outsourcing) achieved income of 25.8 billion, respectively, with an increase of 20%, 9%, 152%, 91%, 2%, 7%, respectively, gross profit of 1.9%, 0.3%, 0.5 million, year-on-year change of-0.9%, 22%, 102%, and 70%, 10%, 20%, respectively. The gross profit margin is 7.4%, 39.6%, 28.8%, respectively, a year-on-year change-1.5pct/+4.1pct/-7.1pct. During the 20-year period, the expense rate is 5.0%, which is the same as minus 1.4pct, and the operating leverage effect is further brought into play.
In terms of customer structure, the proportion of income contributed by new economy / financial institutions / real estate / customers in the past 20 years is 88%, 3.5%, 0.5%, 8%, respectively. Unicorn customers account for 50% of revenue, the top five customers account for 53% of revenue, and the largest customers account for 39% of revenue. Renrui customers are sticky, and 82% of the total revenue comes from regular customers. The staff turnover rate has dropped from 9.9% in 19 years to 9.0% in 20 years.
Investment advice: Renrui is the largest psychic service provider in China, with a market share of 3.1%, based on 20 years of psychic income. Excluding the impact of social security deductions, the income of spiritual workers in the past 20 years is + 32.3%, and the annual per capita net profit is 240000, far exceeding that of their peers. 20 years of R & D investment of 13.9 million, the new CTO is responsible for building an integrated human resources ecosystem, Xiangpin / WeChat group private domain operation and diversion effect is good, Ruiyun / Ruipin / Ruijiayuan continuous optimization and upgrading. It is estimated that the net profit for 21-22 years will be 240 million yuan respectively, corresponding to 15/11xPE, which is actively recommended!
Risk tips: high customer concentration, less-than-expected business development, intensified competition in the industry