Career International(300662) 中银证券·2024-11-03 07:19Investment Rating - The investment rating for the company is "Buy" with a market price of RMB 20.30 and a sector rating of "Outperform" [1][3]. Core Insights - The company's revenue for Q3 2024 reached RMB 2.975 billion, representing a year-on-year growth of 23.12%. However, the net profit attributable to shareholders decreased by 9.60% to RMB 49 million. The adjusted net profit, excluding stock incentive effects, showed a positive growth of 14.78% [3]. - The flexible employment business continues to drive revenue growth, with over 360,000 personnel dispatched and a revenue growth rate of 20.59%. The headhunting business also showed signs of recovery with a 2.33% year-on-year revenue increase in Q3 [3]. - Domestic business has maintained healthy growth with a revenue increase of 27.08% in mainland China, while overseas markets face challenges due to inflation and economic uncertainties [3]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved total revenue of RMB 8.516 billion, a year-on-year increase of 18.77%. The net profit attributable to shareholders was RMB 135 million, down 10.96% year-on-year [3][5]. - The Q3 revenue was RMB 2.975 billion, with a gross margin of 6.87%, slightly down from 7.05% in Q2 2024 and 8.04% in Q3 2023 [3][5]. Business Segments - The flexible employment segment remains the main driver of revenue growth, while the headhunting business is showing signs of recovery, which could positively impact the company's profitability if the trend continues [3][5]. - The company has reached over 38,000 clients through various platforms, with a 13.31% year-on-year increase in client reach [3]. Valuation - The company’s earnings per share (EPS) estimates for 2024-2026 are adjusted to RMB 0.96, RMB 1.22, and RMB 1.53, respectively, with corresponding price-to-earnings ratios of 21.2, 16.7, and 13.3 times [3][5].