Career International(SZ:300662) Soochow Securities·2024-04-28 00:02Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative performance of over 15% compared to the benchmark in the next six months [9][11]. Core Insights - The flexible employment segment is the main revenue contributor, while the recruitment segment shows weak demand, impacting overall profitability. In 2023, the flexible employment revenue reached 8.98 billion yuan, up 11.7% year-on-year, while mid-to-high-end talent search revenue fell to 420 million yuan, down 37.8% year-on-year [2]. - The company completed a 37.5% equity acquisition of its UK subsidiary Investigo, achieving full ownership [2]. - In Q1 2024, the company reported a 22% year-on-year increase in net profit attributable to shareholders, with total revenue of 2.64 billion yuan, up 10.3% year-on-year [5][11]. Financial Performance Summary - The company's overall gross margin for 2023 was 7.31%, a decrease of 2.37 percentage points year-on-year. The gross margin for flexible employment was 6.24%, down 1.18 percentage points year-on-year [10]. - The company’s 2023 revenue was 9.78 billion yuan, a year-on-year increase of 7.55%, while the net profit attributable to shareholders was 201 million yuan, down 31.05% year-on-year [16]. - The forecast for 2024-2025 net profit has been revised down to 265 million yuan and 350 million yuan, respectively, with an expected net profit of 460 million yuan in 2026 [11][16]. Employment and Operational Insights - The company’s flexible employment business dispatched 383,000 personnel in 2023, a year-on-year increase of 3.9%. The number of outsourced employees in flexible employment reached over 35,500, up 8.56% year-on-year, with a focus on technical research and development positions [17]. - As of Q1 2024, the proportion of technical research and development positions among outsourced employees reached a new high of 62.9%, an increase of 7.64 percentage points year-on-year [5].