Career International(SZ:300662) Guoxin Securities·2024-04-29 02:30Investment Rating - The report upgrades the investment rating of the company to "Buy" [5][19][20] Core Views - In 2023, the company's revenue was CNY 9.78 billion, a year-on-year increase of 7.6%, while the net profit attributable to the parent company was CNY 201 million, a decrease of 31.1% [22] - The flexible employment business showed resilience with a revenue of CNY 8.98 billion, up 11.7%, while the headhunting business faced significant pressure with a revenue decline of 37.8% [24] - The company is expected to see improved profitability in 2024, with a projected net profit of CNY 273 million, reflecting a 36.3% increase [18] Financial Performance Summary - The company's gross margin for 2023 was 7.3%, down 2.4 percentage points year-on-year, primarily due to declining margins across various business segments [5][16] - The operating expenses were well-controlled, with a total expense ratio of 4.9%, slightly down from the previous year [5][36] - The net profit margin for 2023 was 2.1%, a decrease of 1.1 percentage points compared to the previous year [5][36] Earnings Forecast - The company forecasts net profits of CNY 273 million for 2024, CNY 351 million for 2025, and CNY 432 million for 2026, with corresponding P/E ratios of 14x, 11x, and 9x respectively [5][18] - The earnings per share (EPS) is projected to be CNY 1.39 for 2024, CNY 1.78 for 2025, and CNY 2.20 for 2026 [18][22] Business Segment Analysis - The flexible employment segment is expected to continue its growth trajectory, with a projected revenue increase of 12.1% in Q1 2024 [40] - The headhunting and recruitment process outsourcing (RPO) segments are under pressure, with revenues expected to remain challenged in the near term [5][24] Market Outlook - The report anticipates a gradual recovery in labor demand, which could enhance the company's operational flexibility and growth potential in the upcoming fiscal year [5][20]