Summary of Conference Call Notes Company and Industry Involved - The discussion revolves around the human resources service industry in China, focusing on the competitive landscape and management efficiency of a specific company within this sector. Core Points and Arguments - **Management Personnel Reduction**: The company anticipates a decrease in the total number of management personnel compared to the previous year, which will contribute to a reduction in management expenses [1] - **Government Subsidies**: The company reports that government subsidies have been satisfactory this year, fulfilling previous commitments. It is believed that this year represents the worst-case scenario, and future policies will enhance stability and flexibility [1][2] - **Competitive Environment**: The current economic downturn has led to difficulties for many small human resources service providers, resulting in a higher rate of exits from the industry compared to new entrants. The company perceives that while entry barriers are low, true competitive advantages remain unchanged among established players [2] - **Trends in the Industry**: There is a growing concern regarding the survival of small and micro human resources service institutions, which may lead to an accelerated exit from the market. Larger enterprises are likely to continue seeking services from established, larger institutions [3] Other Important but Possibly Overlooked Content - **Regulatory Environment**: The increasing scrutiny and regulation in the industry may further impact smaller players, potentially leading to a consolidation of the market as compliance pressures mount [2][3] - **Future Outlook**: The company expresses optimism about the future stability of the industry, suggesting that policy changes will support a more robust operational environment moving forward [1][2]

会议召开时间：2024 年 11 月 15 日（星期五）下午 15:00-16:30 会议召开地点：上海证券交易所上证路演中心 （网址：https://roadshow.sseinfo.com/） 会议召开方式：上证路演中心视频直播和网络互动 证券代码：600861 证券简称：北京人力 公告编号： 临 2024-028 号 北京国际人力资本集团股份有限公司 关于召开 2024 年第三季度业绩说明会的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 投资者可于 2024 年 11 月 8 日（星期五）至 11 月 14 日（星期四）16:00 前 登录上证路演中心网站首页点击"提问预征集"栏目或通过公司邮箱 fesco.ir@fesco.com.cn 进行提问。公司将在说明会上对投资者普遍关注的问题 进行回答。 北京国际人力资本集团股份有限公司（以下简称"公司"）已于 2024 年 10 月 29 日发布公司《2024 年第三季度报告》，为便于广大投资者更全面深入地了 解公司 2024 年第三季度经营成果、财 ...

Investment Rating - The report maintains a "Buy" rating for Beijing Renli (600861) with a target price based on the last closing price of 20.75 [1]. Core Insights - The company's outsourcing business continues to show high growth, contributing approximately 85% to overall revenue, which is crucial for sustained growth amid economic challenges [1]. - The company reported a revenue of 33.179 billion yuan for the first three quarters of 2024, a year-on-year increase of 15.46%, and a net profit attributable to shareholders of 641 million yuan, up 84.75% year-on-year [1]. - The report highlights the organizational restructuring aimed at improving efficiency, with a focus on integrating the operations of various subsidiaries [1]. Financial Performance Summary - Revenue projections for the upcoming years are as follows: - 2023: 38.31 billion yuan - 2024E: 43.76 billion yuan - 2025E: 50.10 billion yuan - 2026E: 57.35 billion yuan - The expected revenue growth rates are 18.47% for 2023, 14.21% for 2024, 14.49% for 2025, and 14.48% for 2026 [3][4]. - The net profit attributable to shareholders is projected to be: - 2023: 547.98 million yuan - 2024E: 910.88 million yuan - 2025E: 1,005.61 million yuan - 2026E: 1,137.55 million yuan, with growth rates of 32.24% for 2023 and 66.22% for 2024 [3][4]. Earnings Per Share and Valuation - The diluted earnings per share (EPS) are forecasted as follows: - 2023: 1.08 yuan - 2024E: 1.61 yuan - 2025E: 1.78 yuan - 2026E: 2.01 yuan - The corresponding price-to-earnings (PE) ratios are projected to be 17.38 for 2023, 12.90 for 2024, 11.68 for 2025, and 10.33 for 2026 [3][4]. Organizational Restructuring - The company has undergone a significant internal restructuring, transferring equity stakes in 27 companies from Beijing Foreign Enterprise to enhance operational focus and management consistency across regional subsidiaries [1].

Investment Rating - The report maintains a "Buy" rating for Beijing Human Resources (600861 SH) with projected PE ratios of 14X 13X and 12X for 2024 2025 and 2026 respectively [1][5] Core Views - In Q3 2024 Beijing Human Resources reported revenue of 11 313 billion yuan a YoY increase of 18 39% and net profit attributable to the parent company of 207 million yuan a YoY increase of 52 3% [1][3] - The company's non-GAAP net profit was 126 million yuan a YoY increase of 33% driven by rapid growth in outsourcing services and steady performance in HR management and payroll services [1][3] - The company's profitability was boosted by government subsidies and cost-saving measures with a slight decline in gross margin due to changes in revenue structure [1][7] - The report forecasts net profit attributable to the parent company for 2024-2026 to be 835 million yuan 897 million yuan and 1 005 billion yuan respectively [1][5] Business Performance - For the first three quarters of 2024 the company achieved revenue of 33 179 billion yuan a YoY increase of 15 46% and net profit attributable to the parent company of 641 million yuan a YoY increase of 84 75% [3] - The outsourcing business grew rapidly driven by large client orders while HR management and payroll services remained stable [7] - The company's gross margin decreased by 0 5 percentage points YoY in Q3 2024 primarily due to the faster growth of low-margin outsourcing business [7] Financial Metrics - The company's current stock price is 20 80 yuan with a total market capitalization of 56 611 million shares and a net asset per share of 11 27 yuan [8] - The report provides detailed financial forecasts for 2024-2026 including revenue operating costs and net profit with expected EPS of 1 48 yuan 1 58 yuan and 1 78 yuan respectively [12] Strategic Outlook - The company is expected to continue its strategic focus on marketization specialization digitization and internationalization leveraging its professional service capabilities and data assets to achieve steady performance growth [6] - The company aims to innovate products empower data link ecosystems and enhance nationwide coordination to improve efficiency and reduce costs in a challenging environment [6]

Summary of Conference Call Company and Industry - The conference call pertains to a company operating in the outsourcing and human resources management industry, with notable clients including Huawei, Alibaba, and Meituan. Key Points and Arguments 1. **Stable Business Operations**: The company reported stable business operations in Q3, with no significant customer loss despite a challenging external environment. Major clients like Huawei and Alibaba showed steady growth, contributing to a stable revenue base [2][3][4]. 2. **Cost Reduction and Efficiency Improvement**: The company has intensified efforts to reduce costs and improve efficiency through various measures, including expense management, internal optimization, and talent restructuring. These efforts are expected to yield positive results in Q3 and the full year [2][3][4]. 3. **Revenue Growth Driven by Outsourcing**: The overall revenue growth is primarily driven by the increase in outsourcing services, while basic services have seen a slight decline due to structural issues and economic pressures [4][5]. 4. **Subsidy Expectations**: The company anticipates that government subsidies will align with expectations, although the timing of these subsidies can vary due to government approval processes. There is no fixed schedule for subsidy payments [5][6]. 5. **Future of Subsidies**: The company remains confident in the continuity and stability of subsidies, despite some local governments tightening their subsidy policies. The focus will be on ensuring that subsidies are legally and reasonably obtained [7][8]. 6. **Client Revenue Contribution**: The top five clients, including Huawei and Alibaba, contribute significantly to revenue, with Huawei alone accounting for approximately one-third of total revenue. However, its direct profit contribution is lower [9][10]. 7. **Focus on Major Clients**: The company plans to continue prioritizing major clients while also attempting to grow its small and medium-sized client base. A dedicated team for major clients has been established to enhance service quality and meet higher demands [11][12]. 8. **Digital Transformation and AI Integration**: The company is exploring the integration of AI and digital tools to enhance efficiency in recruitment and other HR processes. Collaborations with tech firms are being pursued to leverage advanced technologies [14][15]. 9. **Organizational Restructuring**: An internal restructuring is underway to streamline management and improve operational efficiency. This includes reducing organizational layers and enhancing resource allocation [19][20]. 10. **M&A Opportunities**: The company is open to mergers and acquisitions, particularly targeting firms that can complement its capabilities, especially in digital and AI sectors [17][18]. 11. **Performance Outlook**: The company expects that the performance in the second half of the year will be better than the first half, following historical trends, although recent years have been atypical due to external factors [21]. Other Important Content - The company acknowledges the challenges posed by the pandemic and economic downturn but emphasizes its resilience and ability to adapt to changing market conditions [3][21]. - There is a focus on maintaining a balance between cost-cutting measures and investment in growth areas, ensuring that the company remains competitive in the outsourcing market [16][17].

Investment Rating - The report maintains a "Buy" rating for the company [2][5]. Core Insights - The company reported strong profit growth in the first three quarters of 2024, with a revenue of 33.179 billion yuan, representing a year-on-year increase of 15.46%. The net profit attributable to shareholders reached 641 million yuan, up 84.75% year-on-year, and the net profit after deducting non-recurring items was 402 million yuan, a significant increase of 137.92% [3]. - In Q3 2024, the company achieved a revenue of 11.313 billion yuan, a year-on-year growth of 18.39%, and a net profit of 207 million yuan, up 52.30% year-on-year. The growth in profit for the quarter was primarily driven by overall business growth and timing differences in government subsidies [3]. - The company has been optimizing its cost structure, with sales and management expense ratios decreasing to 1.22% and 2.10%, respectively, down 0.31 and 0.46 percentage points year-on-year [3]. - The company's outsourcing business is experiencing steady growth, with a focus on enhancing its recruitment team and optimizing recruitment processes. Strategic global cooperation agreements have been signed with major clients like Huawei and the Adecco Group [4]. - An internal restructuring plan was approved, which includes the transfer of equity in 27 subsidiaries, aimed at improving group management efficiency [4]. Financial Summary - The company is projected to have earnings per share (EPS) of 1.5, 1.7, and 1.9 yuan for 2024, 2025, and 2026, respectively, with corresponding price-to-earnings (P/E) ratios of 14, 12, and 11 times [5]. - Revenue forecasts for the next few years are as follows: 44.225 billion yuan in 2024, 50.773 billion yuan in 2025, and 58.152 billion yuan in 2026, with year-on-year growth rates of 15.43%, 14.81%, and 14.53% respectively [6][10]. - The net profit attributable to shareholders is expected to reach 857.66 million yuan in 2024, 964.93 million yuan in 2025, and 1.08365 billion yuan in 2026, with year-on-year growth rates of 56.51%, 12.51%, and 12.30% respectively [6][10]. - The company's return on equity (ROE) is projected to be 13.00% in 2024, 12.76% in 2025, and 12.53% in 2026 [10].

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company reported a significant increase in profits for Q3, with expectations for a recovery in labor demand [7] - The company achieved a revenue of 33.179 billion yuan in the first three quarters of 2024, representing a year-on-year increase of 15.46%, and a net profit attributable to shareholders of 641 million yuan, up 84.75% year-on-year [2][7] - The company has signed global cooperation agreements with leading firms, which is expected to enhance overseas business growth [7] Financial Performance Summary - For Q3 2024, the company reported revenue of 11.313 billion yuan, a year-on-year increase of 18.39%, and a net profit of 207 million yuan, up 52.30% year-on-year [2][7] - The company's core business, Beijing Foreign Enterprises, achieved a net profit of 652 million yuan in the first three quarters of 2024, with a year-on-year increase of 1.84% [7] - The company expects revenues of 44.081 billion yuan, 50.904 billion yuan, and 58.638 billion yuan for 2024, 2025, and 2026 respectively, with corresponding growth rates of 15.06%, 15.48%, and 15.19% [7][8] Valuation Metrics - The current price of the stock is 20.11 yuan, with a market capitalization of approximately 7.372 billion yuan [5] - The earnings per share (EPS) for 2024 is projected to be 1.54 yuan, with a price-to-earnings (P/E) ratio of 13.0 [8] - The company has a debt-to-asset ratio of 57.48% [5]

Investment Rating - The report assigns a rating of "Buy" for the company [5]. Core Views - The company's revenue performance exceeded expectations, leading to increased certainty in achieving performance commitments. The focus will remain on stable development and efficiency improvements while continuing to expand business boundaries [3][4]. Summary by Sections Financial Performance - In Q3 2024, the company achieved a revenue of 11.313 billion (+18.39%) and a net profit attributable to shareholders of 207 million (+52.30%). For the first three quarters of 2024, the revenue grew by 15.46%, and the net profit increased by 84.75% [4]. - The EPS estimates for 2024, 2025, and 2026 have been adjusted to 1.44, 1.58, and 1.73 yuan respectively, with corresponding net profits of 813 million, 896 million, and 977 million yuan [4]. Business Strategy - The company is focusing on deepening core customer needs, which has increased the certainty of completing performance commitments. The company has demonstrated sufficient capability to meet its performance targets for 2024 [4]. - The growth in revenue is primarily driven by outsourcing business, with a notable acceleration in revenue recognition linked to major client orders [4]. Market Position - The company is positioned as an industry leader, with a higher certainty of performance completion compared to peers. The target price has been raised to 31.60 yuan, reflecting a valuation of 20x PE for 2025, which is above the industry average [4][5]. Financial Metrics - The total market capitalization is approximately 11.498 billion yuan, with a current price of 20.31 yuan. The stock has a price-to-earnings ratio of 20.98 based on the latest diluted share capital [6][5].

Investment Rating - The report maintains a "Buy" rating for Beijing Renli (600861) with a target price of 27.52 CNY over the next six months [1][8]. Core Views - The company's performance in Q1-Q3 2024 was impressive, with revenue reaching 33.18 billion CNY, a year-on-year increase of 15.5%, and net profit attributable to shareholders of 640 million CNY, up 84.8% year-on-year [1][2]. - The significant growth in revenue and profit is attributed to the low base effect from the previous year, as the company completed its restructuring and listing in the first half of 2023 [1][2]. - The company is expected to benefit from policy catalysts aimed at boosting employment, as the government emphasizes job creation and support for the labor market [2][3]. Summary by Sections Financial Performance - For Q3 2024, the company reported revenue of 11.31 billion CNY, a year-on-year increase of 18.4%, and a net profit of 210 million CNY, up 52.3% year-on-year [2]. - The gross profit margin for Q1-Q3 2024 was 5.7%, a decrease of 0.9 percentage points year-on-year, while the net profit margin was 2.6%, an increase of 0.5 percentage points year-on-year [1][2]. Earnings Forecast - The company is projected to achieve net profits of 830 million CNY, 970 million CNY, and 1.12 billion CNY for the years 2024, 2025, and 2026, respectively [3][7]. - The report anticipates a stable growth trajectory for traditional business segments, with expected growth rates of 5.0% for personnel management services and 20.0% for recruitment and flexible employment services over the next few years [6][7]. Market Position and Competitive Advantage - Beijing Renli is recognized as a leading comprehensive human resource solution provider in China, with over 40 years of industry experience and a robust service network [8]. - The company is expected to leverage its established customer resources and service brand advantages to capitalize on the rapid growth of the human resource service industry [8].

Investment Rating - The report assigns a "Recommendation" rating to the company with a target price of 25 yuan, based on a current price of 21.44 yuan [1]. Core Views - The company demonstrated resilient operations with a revenue of 33.179 billion yuan for the first three quarters of 2024, reflecting a year-on-year growth of 15.46%. The net profit attributable to the parent company reached 641 million yuan, up 84.75% year-on-year, while the non-recurring net profit was 402 million yuan, increasing by 137.92% [1]. - In Q3 2024, the company achieved a revenue of 11.313 billion yuan, a year-on-year increase of 18.39%, and a net profit of 207 million yuan, up 52.30% year-on-year. The non-recurring gains included government subsidies of 124 million yuan [1]. - The company is expected to maintain a consistent growth trajectory in its core outsourcing business, which accounted for 83% of total revenue in 2023. The gross margin slightly declined by 0.50 percentage points, attributed to a higher proportion of low-margin outsourcing revenue [1]. - The company announced an internal restructuring plan aimed at optimizing its business lines, which is expected to enhance its strategic development [1]. Financial Summary - For 2024-2026, the projected net profits attributable to the parent company are 820 million yuan, 945 million yuan, and 1.063 billion yuan, representing year-on-year growth rates of 49.7%, 15.2%, and 12.6%, respectively. The corresponding price-to-earnings ratios are approximately 15, 13, and 11 times [1][2]. - The total revenue forecast for 2024 is 44.053 billion yuan, with a year-on-year growth rate of 15.0%. The projected earnings per share for 2024 is 1.45 yuan, with a price-to-earnings ratio of 15 [2][5].