BURTC(600861) Southwest Securities·2024-10-30 09:31Investment 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].