Career International(SZ:300662) Dongxing Securities·2024-05-14 07:32Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expected performance that is stronger than the market benchmark by 5% to 15% [19]. Core Insights - The company reported a revenue of 9.78 billion yuan in 2023, representing a year-on-year increase of 7.6%, while the net profit attributable to shareholders was 200 million yuan, down 31% year-on-year [18]. - In Q1 2024, the company achieved a revenue of 2.64 billion yuan, up 10% year-on-year, with a net profit of 40 million yuan, reflecting a 22% increase year-on-year [2]. - The flexible employment business saw a revenue growth of 12.1% in Q1 2024, while the headhunting and recruitment process outsourcing businesses faced revenue declines due to organizational scale reductions [2][18]. - The company completed a 37.5% equity acquisition of its UK subsidiary, Investigo Limited, achieving full ownership, which is expected to enhance its international resource allocation and product layout [18]. Financial Performance Summary - The company’s revenue is projected to grow to 12.04 billion yuan in 2024, 14.65 billion yuan in 2025, and 17.47 billion yuan in 2026, with corresponding net profits of 260 million yuan, 335 million yuan, and 412 million yuan respectively [4][19]. - The gross profit margin for 2023 was reported at 7.3%, a decrease of 2.4 percentage points, primarily due to the increased proportion of low-margin flexible employment services [18]. - The company’s earnings per share (EPS) are forecasted to be 1.3 yuan in 2024, 1.7 yuan in 2025, and 2.1 yuan in 2026, with current price-to-earnings (PE) ratios of 17, 13, and 11 times respectively [19].