HTSC·2025-05-23 02:35Investment Rating - The report maintains a "Buy" rating for the company with a target price of $23.11 [6][4] Core Insights - The company reported Q1 2025 revenue of 1.923 billion RMB, slightly exceeding expectations, with a year-over-year growth of 12.9%. Adjusted net profit reached 692 million RMB, reflecting a significant year-over-year increase of 76.2% [1][2] - The demand for recruitment is gradually recovering, with a notable increase in blue-collar job seekers, which now account for over 45% of new users, contributing to a revenue share of over 39% [2][3] - The company has successfully reduced its expense ratio, achieving a gross margin of 83.8% and a profit margin of 36% in Q1 2025, indicating ongoing improvements in profitability [3][4] Revenue and Profit Forecast - The revenue forecast for FY25-FY27 has been slightly revised upwards to 8.18 billion RMB, 9.38 billion RMB, and 10.67 billion RMB respectively. The adjusted net profit estimates have also been increased to 3.32 billion RMB, 3.5 billion RMB, and 3.96 billion RMB for the same period [4][11] - The company expects Q2 2025 revenue to be between 2.05 billion RMB and 2.08 billion RMB, which aligns with market expectations [2][4] Financial Metrics - The company achieved a cash collection of 2.18 billion RMB in Q1 2025, reflecting a year-over-year increase of 6.3% [2] - The adjusted operating profit for Q1 2025 was 692 million RMB, with a profit margin of 36%, indicating better-than-expected profit release [3][4] - The report projects an adjusted operating profit of 3.07 billion RMB for the full year 2025 [3][4] Valuation - Based on a DCF valuation method, the target price is set at $23.11, reflecting a perpetual growth assumption of 3% and a WACC of 8.95% [4][11][13] - The company's market capitalization is approximately $7.904 billion, with a closing price of $17.90 as of May 21 [7][6]