Company profile: the performance in 2020 first suppressed and then increased, and the growth rate was slightly higher than expected. In 2020, revenue increased by 23.7% to 2.83 billion yuan, 20H1/H2 by 11%, 35%, adjusted net profit by 36.5% to 183 million yuan, and 20H1/H2 by-9%, 72% respectively. Affected by the epidemic and accelerated after the epidemic. The 20-year gross profit margin fell by 0.9pct to 9.6%. Affected by the fluctuation of flexible labor demand, the rate of sales, R & D and administrative expenses decreased by 1.4pct to 5.0%, and the adjusted net interest rate increased by 0.6pct to 6.5%. The per capita management radius of 232beneficiaries is more than 50% higher than that of 150 people in the same industry.
Flexible employment: strengthen key customers and technical advantages, plus IT talent outsourcing flexible employment income of 2.576 billion / + 19.8% in 2020 (+ 28.9% if you add back the social security deduction for concessionary customers), gross profit margin 7.4% CPU 1.5 pct, of which the number of people on duty is + 42% to 35800. The future: (1) strengthen the advantage of key customers and generate revenue, with 53% contribution from TOP5 customers and 82% from old customers. On the one hand, the revenue of old customers will increase by 31%, and at the same time, many vertical areas will be expanded. (2) strengthen technical advantages and improve efficiency, and strive to build a professional ecological chain, job seekers big data Central Taiwan, community operation toolbox, Renrui IT recruitment platform, upgrade outsourcing project management system (outsourced employee turnover rate reduced 0.9pct to 9.0%) (3) plus IT talent outsourcing, high-end: the establishment of IT talent outsourcing business department, the number of 10 customers during the year, and Renrui IT recruitment platform online, a financial technology company IT talent outsourcing project ranked first among the three suppliers in December 2020, will quickly enhance Renrui IT talent outsourcing service experience through the "partner Entrepreneurship Plan", and plan to participate in 1-2 IT talent community platform companies by way of investment.
BPO business: relying on flexible employment, the site expands rapidly
BPO revenue 151 million / + 191% in 2020, gross profit margin 16.0%/+0.9pct. The company's BPO is based on flexible employment business, and its income increased from 2 million yuan to 151 million yuan in 2017-20. Xunteng Group, an investment cooperation in the talent side, ensured the rapid recruitment of BPO employees; at the same time, carrying out an extension partner entrepreneurship plan on the business side ensured the rapid convergence of BPO experience. At present, in addition to Yingkou in Liaoning and Taian in Shandong, BPO sites gradually cover Shihezi in Xinjiang, Luzhou in Sichuan and Qingyang District in Chengdu, achieving rapid expansion.
Profit forecast and investment advice:
It is estimated that the company's revenue in 2021-23 will be 40.3% 540 million yuan, with a year-on-year growth rate of 42% 34% and 28%, with an adjusted net profit of 2.5% 338 million yuan and a year-on-year growth rate of 36% 35%. It will give 25 times PE in 21 years corresponding to a reasonable market capitalization of 6.2 billion yuan and a target price of HK $47.50 (HK $1 = HK $0.84). It is optimistic that the company will have flexible employment and high growth of BPO business in the future, covering for the first time. Give a "buy" rating.
Risk hint
The risk of macroeconomic fluctuations, the unstable growth rate of the new economy industry, and the implementation of the company's strategy is not up to expectations.