Summary of Beijing International Human Capital Group Conference Call Company Overview - **Company**: Beijing International Human Capital Group - **Industry**: Human Resources Services Key Financial Highlights - **Revenue**: In 2024, revenue exceeded 40 billion yuan, reaching 43 billion yuan, a year-on-year increase of 12%, with a three-year compound growth rate of 15% [2][5] - **Outsourcing Business**: Revenue from outsourcing services was 36 billion yuan, up 14% year-on-year, accounting for 83.77% of total revenue [2][5] - **Net Profit**: Net profit attributable to shareholders was 791 million yuan, a 44% increase year-on-year, with a three-year compound growth rate of 38% [2][5] - **Non-recurring Net Profit**: Non-recurring net profit was 533 million yuan, a 107% increase year-on-year, with a three-year compound growth rate of 161% [2][5] - **Total Assets**: Total assets reached 16.424 billion yuan by the end of 2024 [2][5] - **Shareholder Returns**: Proposed cash dividend of 6.99 yuan per 10 shares, totaling 369 million yuan, with a payout ratio of 50%, a nearly 45% increase from the previous year [2][3] Market Expansion and Client Development - **Client Acquisition**: In 2024, the company added 30 large-scale clients, including 14 private enterprises, enhancing market competitiveness [2][8] - **Industry Penetration**: Significant breakthroughs in sectors such as information technology, new energy, and fast-moving consumer goods [2][8] Strategic Focus and Future Plans - **Strategic Direction**: The company emphasizes market-oriented, professional, digital, and international strategies, aiming for sustainable development and improved shareholder returns [3][6] - **International Expansion**: Establishment of a Singapore company as an overseas investment management platform to support international business [3][15] - **Operational Efficiency**: Plans to enhance regional business collaboration, improve outsourcing capabilities, and integrate financial and operational management [6][7][24] Challenges and Industry Trends - **Industry Evolution**: The human resources service industry is expected to become more intelligent and personalized, shifting from traditional services to high-value strategic offerings [22] - **Internationalization Challenges**: Companies face challenges such as policy environments, cultural differences, and service standard discrepancies during international expansion [23] Additional Insights - **Cost Management**: The company has successfully reduced operating expenses by 2.34 percentage points [2][5] - **Employee Productivity**: Average profit per employee increased to 278,900 yuan, up 68,000 yuan year-on-year [2][5] - **Sustainability Initiatives**: The company is committed to ESG governance, focusing on environmental responsibility and social contributions [20][21] This summary encapsulates the key points from the conference call, highlighting the financial performance, strategic initiatives, market expansion efforts, and industry outlook of Beijing International Human Capital Group.

Investment Rating - The report maintains a "Buy" rating for the company [9] Core Insights - In 2024, the company achieved an operating revenue of 43.032 billion yuan, representing a year-on-year increase of 12.32%. The net profit attributable to shareholders was 791 million yuan, up 44.42% year-on-year, while the net profit after deducting non-recurring items reached 533 million yuan, marking a significant increase of 106.88% [2][6] - For Q1 2025, the company reported an operating revenue of 10.837 billion yuan, a year-on-year increase of 2.72%. The net profit attributable to shareholders soared to 591 million yuan, reflecting a year-on-year growth of 180.41%, although the net profit after deducting non-recurring items decreased by 22.11% to 145 million yuan [2][6] - The forecast for net profit attributable to shareholders for 2025-2027 is 960 million, 1.06 billion, and 1.18 billion yuan, respectively, corresponding to price-to-earnings ratios of 13, 12, and 11 times [2][6] Revenue Breakdown - In 2024, the company's revenue from outsourcing services was the main growth driver, totaling 36.048 billion yuan, up 13.96% year-on-year. The human resource management service revenue was 990 million yuan, down 9.06%, primarily due to the company's focus on outsourcing services [13] - The salary and welfare service revenue reached 1.2 billion yuan, an increase of 4.68%, driven by the integration of employee welfare platforms. Recruitment and flexible employment services generated 4.336 billion yuan, up 12.60%, due to enhanced technology-driven approaches [13] Profitability Analysis - The change in business structure and the decline in gross margin from core outsourcing services impacted the overall gross margin. However, cost optimization partially offset this effect. The year 2024 marked the first complete financial year post the asset injection from Beijing Foreign Enterprises, leading to significant profit growth compared to the previous year [13] - In Q1 2025, revenue growth was primarily driven by outsourcing, although gross margin declined year-on-year. The increase in net profit was attributed to asset disposal gains and early government subsidies [13]

Investment Rating - The investment rating for the company is "Buy" with a target price not specified [7] Core Views - The company is expected to achieve a revenue of 43 billion with a year-on-year growth of 12% and a net profit attributable to shareholders of 791 million, representing a year-on-year increase of 44% [1] - The company has exceeded its performance commitments for the year 2024, achieving a net profit of 872 million, which is a 6% increase year-on-year, and a non-GAAP net profit of 575 million, which is a 17% increase year-on-year [1][3] - The company is entering a new industrial cycle empowered by AI, with cyclical attributes and low valuation, suggesting a reduced probability of subsidy cuts due to employment promotion efforts [4] Financial Performance Summary - For 2024, the company expects to generate revenue of 43.03 billion, with a growth rate of 12.32% [5] - The net profit attributable to shareholders is projected to be 791.4 million, reflecting a growth rate of 44.42% [5] - The company plans to distribute a dividend of 0.699 per share, with a payout ratio of 50% [2] Business Segment Breakdown - The revenue from business outsourcing is expected to be 36 billion, with a year-on-year growth of 14% [2] - The personnel management segment is projected to generate 1 billion, showing a decline of 9% year-on-year [2] - The recruitment and flexible employment segment is expected to achieve 4.3 billion in revenue, with a year-on-year growth of 13% [2] Client Contribution - The top five clients contributed 17.9 billion in sales, representing a 17% year-on-year increase and accounting for 42% of total sales [2] - The company added 30 new large clients, 14 of which are private enterprises [2] Future Profit Forecast - The company forecasts net profits of 9.5 billion, 10.4 billion, and 11.6 billion for the years 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 13, 12, and 10 [4]

Group 1 - The company reported a revenue of 43.032 billion yuan for 2024, a year-on-year increase of 12.32%, and a net profit attributable to shareholders of 791 million yuan, up 44.42% year-on-year [1] - The significant growth in profit is attributed to the base effect from the previous year, where asset disposals negatively impacted performance, including a land appreciation tax of approximately 197 million yuan [1] - In Q1 2025, the company achieved total operating revenue of 10.837 billion yuan, a year-on-year increase of 2.72%, and a net profit attributable to shareholders of 591 million yuan, up 180.41% year-on-year [1] Group 2 - The company plans to distribute a cash dividend of 0.6990 yuan per share, totaling 396 million yuan, with a cash dividend ratio of 50% [2] - The outsourcing business drove revenue growth, achieving 36.048 billion yuan, a year-on-year increase of 13.96%, and is identified as the core driver of the company's performance [2] - The company has strengthened its professional outsourcing capabilities, enhancing recruitment efficiency and reducing costs through AI technology and digital tools [2] Group 3 - The company has successfully completed its 2024 performance commitments and proposed a high dividend payout plan [3] - The company is expected to maintain steady growth driven by its high-growth outsourcing business and increased customer development efforts, adding 30 large clients during the year [3] - The profit forecast for 2025-2026 has been slightly adjusted to 971 million yuan and 1.066 billion yuan, respectively, with a new forecast for 2027 at 1.202 billion yuan [3]

Core Viewpoint - The company reported a revenue of 43.03 billion yuan in 2024, representing a year-on-year increase of 12.3%, and a net profit attributable to shareholders of 790 million yuan, up 44.4% [1][2]. Financial Performance - In 2024, the company achieved a revenue of 43.03 billion yuan (+12.3%) and a net profit of 790 million yuan (+44.4%). The non-recurring net profit was 530 million yuan (+106.9%), with government subsidies contributing 565 million yuan [2]. - For Q1 2025, the company reported a revenue of 10.84 billion yuan (+2.7%) and a net profit of 590 million yuan (+180.4%), with government subsidies amounting to 418 million yuan [2]. Revenue Breakdown - The revenue from various business segments in 2024 was as follows: personnel management (990 million yuan, -9.06%), compensation and benefits (1.2 billion yuan, +4.68%), business outsourcing (36.05 billion yuan, +13.96%), and recruitment and flexible employment services (4.34 billion yuan, +12.60%) [2]. Profitability Metrics - The overall gross margin for the company in 2024 was 5.48%, a decrease of 0.72 percentage points. The gross margins for specific services were: business outsourcing (3.22%), personnel management (82.30%), compensation and benefits (18.41%), and recruitment and flexible employment services (3.17%) [3]. - The net profit margin attributable to shareholders was 1.8%, an increase of 0.4 percentage points [3]. Strategic Initiatives - The company added 30 large clients in 2024 and is actively pursuing international expansion, having signed global cooperation agreements with companies like the Adecco Group and Huawei [3]. - The company plans to distribute a cash dividend of 0.70 yuan per share (including tax), totaling 396 million yuan, with a cash dividend payout ratio of 50% [3]. Industry Outlook - The domestic recruitment market has shown steady recovery since 2025, and the company is expected to benefit from the improving industry conditions. The competitive landscape in the human resources sector is favorable and fragmented, positioning the company well for long-term growth [4].

Investment Rating - The report maintains a "Buy" rating for Beijing Human Resources (600861) with a target price based on the last closing price of 22.32 [1][7]. Core Insights - The company reported a revenue of 430.32 billion yuan for 2024, representing a year-on-year growth of 12.32%, and a net profit attributable to shareholders of 7.91 billion yuan, up 44.42% year-on-year [4][5]. - In Q1 2025, the company achieved a revenue of 108.37 billion yuan, a growth of 2.72% year-on-year, and a net profit of 5.91 billion yuan, which is a significant increase of 180.41% year-on-year [4][5]. - The outsourcing business is identified as the core driver of revenue growth, accounting for 83.77% of total revenue, with a year-on-year growth rate of 13.96% [4][5]. - The company is focusing on digital upgrades to enhance operational efficiency through collaborations with technology firms [6]. Financial Performance Summary - For 2024, the company expects to achieve a revenue of 430.32 billion yuan, with a growth rate of 12.32%, and a net profit of 7.91 billion yuan, reflecting a growth rate of 44.42% [8]. - The projected net profits for 2025, 2026, and 2027 are 10.98 billion yuan, 10.1 billion yuan, and 11.47 billion yuan, with growth rates of 38.69%, -7.94%, and 13.52% respectively [7][8]. - The estimated earnings per share (EPS) for 2025, 2026, and 2027 are 1.94 yuan, 1.78 yuan, and 2.03 yuan, with corresponding price-to-earnings (PE) ratios of 12X, 13X, and 11X [7][8]. Cost Management and Efficiency - The company has shown significant improvement in cost management, with a decrease in selling, administrative, and research expenses as a percentage of revenue [6]. - The overall gross margin for 2024 was 5.89%, down 1.00 percentage point year-on-year, primarily due to the increased proportion of lower-margin outsourcing business [5][6].

Performance Overview - In 2024, the company achieved revenue of 43.032 billion (yoy +12.32%) and a net profit attributable to shareholders of 0.791 billion (yoy +44.42%), with a non-recurring net profit of 0.533 billion (yoy +106.88%) [1] - The significant profit increase in 2024 was mainly due to a low base effect from asset disposals and related tax expenses from asset replacements [1] - In Q1 2025, the company reported revenue of 10.837 billion (yoy +2.72%) and a net profit attributable to shareholders of 0.591 billion (yoy +180.21%), with a non-recurring net profit of 0.145 billion (yoy -22.11%) [1] - The non-recurring gains in Q1 2025 included government subsidies of 0.42 billion and gains from subsidiary equity transfers and financial products totaling 0.36 billion [1] Business Performance - Beijing Foreign Enterprises achieved a net profit of 0.872 billion in 2024 (yoy +5.61%) and a non-recurring net profit of 0.575 billion (yoy +17.45%), fulfilling 146.78% and 102.24% of its annual performance commitments, respectively [2] - Revenue breakdown for 2024 includes: outsourcing services at 36.048 billion (yoy +13.96%), personnel management services at 0.099 billion (yoy -9.06%), compensation and benefits services at 0.12 billion (yoy +4.68%), and recruitment and flexible employment at 4.346 billion (yoy +12.60%) [2] - The company expects to benefit from pro-employment and pro-consumption policies, with a projected non-recurring net profit of no less than 0.662 billion in 2025, indicating a growth rate of no less than 9.66% [2] Long-term Outlook - In 2024, the company signed global cooperation agreements with Adecco Group and Huawei Technologies, which may accelerate the acquisition of large client labor needs overseas [3] - A subsidiary plans to establish a joint venture with Kunlun Wanwei to promote AI in recruitment, aiming to reduce costs and improve efficiency for enterprises [3] - Revenue projections for 2025-2027 are 48.636 billion, 55.477 billion, and 63.878 billion, with corresponding growth rates of 13.02%, 14.07%, and 15.14% [3] - Net profit projections for the same period are 0.898 billion, 1.025 billion, and 1.195 billion, with growth rates of 13.42%, 14.23%, and 16.50% [3] - Earnings per share (EPS) are expected to be 1.59, 1.81, and 2.11 yuan per share for 2025-2027 [3]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company reported a revenue of 43.03 billion yuan in 2024, representing a year-on-year growth of 12.32%, while the net profit attributable to shareholders reached 791.41 million yuan, up 44.42% year-on-year [8] - The company experienced a slowdown in revenue growth, with Q1 2025 revenue at 10.84 billion yuan, reflecting a 2.7% year-on-year increase [8] - Government subsidies significantly contributed to profit growth, with other income (government subsidies) increasing from 3.5 billion yuan to 5.1 billion yuan [8] Financial Performance Summary - Total revenue projections for the company are as follows: 2023A: 38.31 billion yuan, 2024A: 43.03 billion yuan, 2025E: 47.85 billion yuan, 2026E: 52.47 billion yuan, and 2027E: 56.70 billion yuan [1] - Net profit attributable to shareholders is forecasted to be 791.41 million yuan in 2024, 893.55 million yuan in 2025, 966.03 million yuan in 2026, and 1.05 billion yuan in 2027 [1] - The earnings per share (EPS) is projected to be 1.40 yuan in 2024, 1.58 yuan in 2025, 1.71 yuan in 2026, and 1.85 yuan in 2027 [1] Business Segment Performance - The company’s revenue from personnel management services, compensation and benefits services, business outsourcing services, recruitment and flexible employment services, and other services for 2024 is projected to be 9.9 billion yuan, 12.0 billion yuan, 36.05 billion yuan, 4.34 billion yuan, and 450 million yuan respectively [8] - Business outsourcing services contributed nearly 80% of the gross profit in 2024, although it had a relatively low gross margin [8] Strategic Developments - The company is deepening its partnership with the Adecco Group to support Chinese enterprises in their global expansion [8] - The company has signed a global cooperation agreement with Adecco Group and Huawei Technologies to provide human resource services [8]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown stable revenue growth, with a reported revenue of 43.03 billion yuan in 2024, representing a year-on-year increase of 12.32%. The net profit attributable to the parent company reached 791.41 million yuan, up 44.42% year-on-year [8] - The company benefits from government subsidies, which have significantly boosted profit growth. The net profit for Q1 2025 was 5.9 billion yuan, reflecting a year-on-year increase of 180.4% [8] - The company continues to deepen its partnership with the Adecco Group, enhancing its service offerings for Chinese enterprises expanding globally [8] Financial Summary - Total revenue projections for the company are as follows: 43.03 billion yuan in 2024, 47.85 billion yuan in 2025, 52.47 billion yuan in 2026, and 56.70 billion yuan in 2027, with respective year-on-year growth rates of 12.32%, 11.19%, 9.67%, and 8.05% [1][9] - The net profit attributable to the parent company is forecasted to be 791.41 million yuan in 2024, 893.55 million yuan in 2025, 966.03 million yuan in 2026, and 1.05 billion yuan in 2027, with year-on-year growth rates of 44.42%, 12.91%, 8.11%, and 8.61% respectively [1][9] - The latest diluted EPS is projected to be 1.40 yuan in 2024, 1.58 yuan in 2025, 1.71 yuan in 2026, and 1.85 yuan in 2027 [1][9] Market Data - The closing price of the company's stock is 22.32 yuan, with a market capitalization of 12.64 billion yuan [5] - The company has a price-to-earnings (P/E) ratio of 15.97 for the current price and latest diluted earnings per share [1][5]

Investment Rating - The report maintains a "Buy" rating for Beijing Renli (600861) with a target price based on the last closing price of 22.32 [1][7] Core Insights - The company achieved a revenue of 43.03 billion yuan in 2024, representing a year-on-year growth of 12.32%, and a net profit attributable to shareholders of 791.4 million yuan, up 44.42% [4][8] - In Q1 2025, the company reported a revenue of 10.84 billion yuan, a 2.72% increase year-on-year, and a net profit of 591 million yuan, showing a significant growth of 180.41% [4][5] - The outsourcing business is identified as the core driver of revenue growth, accounting for 83.77% of total revenue, with a growth rate of 13.96% for the year [4][5] Financial Performance Summary - The company’s gross margin for 2024 was 5.89%, a decrease of 1.00 percentage points year-on-year, primarily due to an increase in the proportion of lower-margin outsourcing business [5][6] - The net profit margin for 2024 was 1.84%, slightly up by 0.41 percentage points year-on-year, while the gross margin further declined to 5.63% in Q1 2025 [5][6] - The company plans to distribute a cash dividend of 0.6990 yuan per share, with a cash dividend ratio of 50% for 2024 [6] Future Projections - The company is expected to achieve net profits of 1.1 billion yuan, 1.01 billion yuan, and 1.15 billion yuan for 2025, 2026, and 2027, respectively, with growth rates of 38.69%, -7.94%, and 13.52% [7][8] - Earnings per share (EPS) are projected to be 1.94 yuan, 1.78 yuan, and 2.03 yuan for the years 2025, 2026, and 2027, with corresponding price-to-earnings (PE) ratios of 12X, 13X, and 11X [7][8]