HTSC·2025-08-21 03:18Investment Rating - The report maintains a "Buy" rating for the company with a target price of $27.62, up from a previous target of $23.11 [6][4]. Core Insights - The company reported Q2 2025 revenue of 21.02 billion RMB, slightly exceeding Huatai's forecast of 20.7 billion RMB, with a year-over-year growth of 9.7%. Adjusted net profit reached 9.46 billion RMB, significantly above the forecast of 8.48 billion RMB, reflecting a year-over-year increase of 30.8% [1][4]. - The overall recruitment demand continues to recover, with a notable improvement in the supply-demand relationship. The number of monthly active users (MAU) reached 63.6 million, a year-over-year increase of 16.5%, and the number of enterprise paying users grew by 10.2% year-over-year [2][3]. - The company is experiencing scale effects, with a gross margin of 85.4%, up 1.9 percentage points year-over-year. The sales expense ratio decreased by 8.4 percentage points, indicating improved marketing efficiency [3][4]. Revenue and Profit Forecast - The revenue forecast for FY25-FY27 has been slightly revised upwards to 82 billion RMB, 94 billion RMB, and 106.9 billion RMB, respectively. The adjusted net profit forecast has also been increased to 35.2 billion RMB, 37.7 billion RMB, and 44.5 billion RMB for the same period [4][11]. - The company expects Q3 2025 revenue to be between 21.3 billion RMB and 21.6 billion RMB, representing a year-over-year growth of 11.4% to 12% [2][3]. Financial Metrics - The company achieved an adjusted operating profit of 8.8 billion RMB in Q2 2025, corresponding to a profit margin of 41.9%, which is better than the forecast of 7.9 billion RMB [3][4]. - The report indicates a projected adjusted EPS of 5.71 RMB for 2025, with a PE ratio of 25.92 [10][19]. Market Position - The recruitment demand is showing signs of recovery, particularly in the internet sector, with blue-collar job demand improving since May. Small and micro enterprises are recovering at the fastest pace, with companies having fewer than 20 employees accounting for about 20% of Q2 revenue [2][3].