Qiangsheng Holding(SH:600662) Minsheng Securities·2024-08-23 08:45Investment Rating - The report maintains a "Recommended" rating for the company [1][3]. Core Views - The company achieved a revenue of 10.542 billion yuan in the first half of 2024, representing a year-on-year increase of 14.47%, with a net profit attributable to shareholders of 364 million yuan, up 5.48% year-on-year [1]. - The growth in revenue is primarily driven by the increase in business outsourcing service income, while the human resource management service revenue faced pressure [1]. - The company is actively expanding its external layout, focusing on high-tech and high-value-added sectors, and enhancing its post-investment management system [1]. Financial Performance - In 1H24, the company's gross profit margin was 9.95%, a decrease of 0.43 percentage points year-on-year, influenced by the rising proportion of lower-margin outsourcing services [1]. - The company reported a net profit margin of 3.45% in 1H24, down 0.29 percentage points year-on-year [1]. - The revenue from personnel management services was 578 million yuan, down 3.25% year-on-year, while the revenue from business outsourcing services was 8.343 billion yuan, up 17.21% year-on-year [1]. Future Projections - The company is expected to achieve net profits of 621 million yuan, 702 million yuan, and 798 million yuan for the years 2024, 2025, and 2026, respectively, with corresponding price-to-earnings ratios of 15, 13, and 11 [1][4].