BURTC(SH:600861) Guoxin Securities·2024-04-28 02:30Investment Rating - The report maintains a "Buy" rating for Beijing Human Resources (600861.SH) [26][39][54] Core Insights - In 2023, Beijing Human Resources achieved revenue of 38.31 billion yuan, a year-on-year increase of 18%, and a net profit attributable to shareholders of 548 million yuan, up 32% year-on-year [4][33] - The company’s subsidiary, Beijing Foreign Enterprise (FESCO), reported a net profit of 825 million yuan in 2023, reflecting a 13% increase year-on-year, and successfully met its restructuring performance commitments [30][33] - The report highlights the resilience of the outsourcing business, with revenue from outsourcing services reaching 31.63 billion yuan, a 24% increase year-on-year [5][33] - The company’s gross margin for 2023 was 6.9%, with a net profit margin of 1.4%, indicating a slight improvement in profitability despite a decrease in gross margin due to changes in business structure [22][33] Financial Performance Summary - For 2024 Q1, the company reported revenue of 10.55 billion yuan, a 13% increase, but a net profit of 211 million yuan, down 19% year-on-year due to timing differences in subsidy recognition [7][39] - The report projects a downward adjustment in net profit forecasts for 2024 and 2025 to 936 million yuan and 1.066 billion yuan, respectively, with an introduction of a 2026 forecast of 1.197 billion yuan [39][46] - The earnings per share (EPS) estimates for 2024, 2025, and 2026 are projected at 1.65 yuan, 1.88 yuan, and 2.12 yuan, respectively [39][46] Business Segment Analysis - The revenue breakdown for 2023 shows that the outsourcing service segment contributed 83.15% of total revenue, with a gross margin of 3.3% [5][33] - The personnel management segment generated 1.088 billion yuan, down 3.72% year-on-year, while the salary and welfare segment saw a slight increase of 2.95% to 1.146 billion yuan [5][33] - The report indicates that the company’s operational efficiency is improving, with a reduction in expense ratios across various categories, including sales, management, and R&D [22][33]