Career International(SZ:300662) Guotai Junan Securities·2024-04-28 02:32Investment Rating - The investment rating for the company is "Buy" with a target price of 35.96 [2][4]. Core Views - The report indicates that the company's performance meets expectations, with an improvement in business conditions quarter-on-quarter, and steady performance release expected following the implementation of incentive plans [2][4]. Summary by Sections Performance Review - The company achieved a revenue of 1.34 billion with a year-on-year growth of 7.55% in Q1 2024, while the net profit attributable to shareholders was 406.5 million, reflecting a year-on-year increase of 22% [2][4]. - The report highlights a significant decline in net profit for the year, down 63% year-on-year, indicating challenges in cyclical business segments [2][4]. Financial Forecast - The forecast for 2024/25 EPS is set at 1.34/1.69 yuan, with an upward adjustment based on the company's incentive plan revenue growth targets [2][4]. - Revenue projections for 2024E are estimated at 12.201 billion, with a net profit forecast of 263 million, reflecting a 31% increase [6]. Business Insights - The company has seen a recovery in core client orders, with a significant increase in the number of successful headhunting recommendations, rising to 3,113, a 92% increase from Q1 2023 [2][4]. - The report notes that the revenue share from the top five clients (CR5) has increased to 44.12%, indicating a growing dependency on major clients while also diversifying its client base [2][4]. Market Position - The company is positioned as a leading technology-driven talent solution provider in the human resources sector, with a presence in multiple global markets [4][6]. - The report emphasizes the company's strategic focus on developing mid-tier clients in niche markets, which is expected to enhance revenue diversity over time [2][4].