BURTC(600861)2024-10-29 09:12Investment Rating - The report gives a "Recommended" rating for the company, Beijing Human Resources (600861.SH) [4][39]. Core Views - The company has shown strong revenue growth, with a 15.5% year-on-year increase in revenue for the first three quarters of 2024, reaching 33.19 billion yuan, and an impressive 84.8% increase in net profit attributable to shareholders, amounting to 640 million yuan [1][2]. - The company is positioned as a leading player in the domestic human resources service industry, benefiting from a robust brand influence and a comprehensive service offering that includes outsourcing and personnel management [2][39]. - The report anticipates continued growth in net profit, projecting figures of 880 million yuan, 980 million yuan, and 1.07 billion yuan for 2024, 2025, and 2026 respectively, with corresponding PE ratios of 12.9X, 11.6X, and 10.6X [2][39]. Summary by Sections Financial Performance - In Q3 2024, the company achieved revenue of 11.31 billion yuan, a year-on-year increase of 18.4%, and net profit of 210 million yuan, up 52.3% year-on-year [1]. - The gross margin for Q3 2024 was reported at 5.9%, with a slight increase from the previous quarter, while the net profit margin was 1.8% [1]. Business Overview - The company is the first human resources service provider in China, established in 1979, and has developed a comprehensive service system covering various HR management modules [11]. - The business model includes a wide range of services such as personnel management, payroll services, outsourcing, and flexible employment solutions, contributing significantly to revenue [15][17]. Market Position and Growth Potential - The human resources service industry is experiencing stable growth, with the number of service institutions increasing by 11% year-on-year, indicating a healthy market environment [25]. - The company has a diverse and high-quality client base, including major corporations like Huawei and Alibaba, which enhances its resilience against economic fluctuations [31]. Future Projections - The report forecasts a steady increase in revenue, with expected figures of 43.97 billion yuan, 50.92 billion yuan, and 57.88 billion yuan for 2024, 2025, and 2026 respectively, reflecting a compound annual growth rate (CAGR) of 24.4% since 2019 [3][39]. - The company is expected to leverage its partnership with Adecco Group to expand its overseas business, which could provide additional growth opportunities [32].