Career International(SZ:300662) Xin Lang Cai Jing·2025-04-29 02:43Core Viewpoint - The company's 2024 performance is in line with expectations, showing revenue growth and a slight increase in net profit, driven by stable growth in flexible employment and improved operational efficiency through AI technology [1][2]. Financial Performance - In 2024, the company reported revenue of 11.79 billion, a year-on-year increase of 20.5%, and a net profit attributable to shareholders of 210 million, up 2.4% [1]. - The quarterly breakdown for 2024 shows revenue growth of 10.3%, 22.9%, 23.1%, and 25.4% for Q1 to Q4, respectively, with net profit growth of 22.1%, -29.2%, -9.6%, and 44.2% [1]. - For Q1 2025, revenue increased by 25.1% to 3.30 billion, and net profit rose by 42.1% to 60 million, benefiting from the growth in flexible employment and AI applications [1]. Business Segments - Flexible employment revenue grew by 22.4% to 11.14 billion, with the number of dispatched personnel increasing by 30% to 499,000, although average revenue per person decreased by 4.8% to 22,000 due to the employment environment [2]. - Recruitment and RPO businesses faced challenges, with revenues declining by 11.6% and 18.3% to 370 million and 60 million, respectively, but a recovery is expected in Q1 2025 [2]. - Technical services revenue increased by 44.2% to 6 million, driven by operational and technical enhancements in the HeWa platform [2]. Cost Management and Efficiency - Gross margins decreased by 1.0 and 0.8 percentage points to 6.4% and 5.5% for 2024 and Q1 2025, respectively, due to the rapid expansion of flexible employment [3]. - The company improved its cost structure, with sales and management expense ratios decreasing, leading to a slight increase in net profit margins for Q1 2025 [3]. AI Technology Development - The company accelerated AI technology research and application, launching the AI screening assistant 1.0 in Q1 2025, which reduces screening workload by 80% with 98% accuracy [3]. - As of March 2025, the HeWa ecosystem registered 16,200 partners and 156,000 delivery consultants, showing significant growth in active participants [3]. Profit Forecast and Valuation - The profit forecast for 2025 is maintained at 280 million, with a new forecast of 320 million for 2026, resulting in a P/E ratio of 24 and 21 times for 2025 and 2026, respectively [4]. - The target price is raised by 67% to 40, indicating a 17% upside potential from the current stock price, supported by improving market conditions and AI technology implementation [4].