Career International(SZ:300662) Changjiang Securities·2025-05-04 23:30Investment Rating - The report maintains a "Buy" rating for the company [8]. Core Views - The company reported a revenue of 11.788 billion yuan in 2024, representing a year-on-year increase of 20.55%. The net profit attributable to shareholders was 205 million yuan, up 2.42% year-on-year. The net profit after deducting non-recurring items was 139 million yuan, an increase of 3.57% year-on-year. For Q1 2025, the revenue was 3.303 billion yuan, a year-on-year increase of 25.13%, with a net profit of 57.78 million yuan, up 42.15% year-on-year, and a net profit after deducting non-recurring items of 46.20 million yuan, a significant increase of 103.24% year-on-year [2][6]. Summary by Sections Financial Performance - In 2024, the company's revenue growth was driven by major clients, particularly in flexible employment services, which saw a year-on-year increase of 22.42%. However, the headhunting and RPO (Recruitment Process Outsourcing) segments faced declines of 11.60% and 18.27%, respectively. The overall revenue from mainland China increased by 28.67%, while revenue from Hong Kong, Macau, and overseas markets declined by 4.39% [6][12]. Profitability - The increase in revenue from major clients has impacted the gross margin of flexible employment services. The overall gross margin for 2024 was 6.36%, a decrease of 0.95 percentage points year-on-year. The company managed to reduce its expense ratios significantly, which helped mitigate some of the pressure on gross margins. The net profit margin decreased by 0.54 percentage points to 1.74% [12][6]. Future Outlook - The report anticipates that the company's net profit attributable to shareholders will reach 287 million yuan in 2025, 399 million yuan in 2026, and 523 million yuan in 2027, corresponding to price-to-earnings ratios of 23, 17, and 13, respectively. The company is expected to benefit from a cyclical recovery in the industry and the integration of AI technologies, which will enhance operational efficiency and revenue generation [2][12].