Core Viewpoint - The company reported strong revenue growth and improved profitability in its 2024 annual report and 2025 Q1 report, indicating a positive trend in its business operations and market recovery [1][2][3]. Financial Performance - In 2024, the company's revenue reached 11.79 billion yuan, a year-on-year increase of 20.6%, with a net profit attributable to shareholders of 210 million yuan, up 2.4% [1]. - For Q1 2025, the company generated revenue of 3.30 billion yuan, reflecting a 25.1% year-on-year growth, and a net profit of 57.78 million yuan, which is a 42.2% increase [1]. - Other income for Q1 2025 was 51.80 million yuan, a significant rise of 536.8%, primarily due to increased subsidies and grants related to business operations [1]. - The company's gross margin for Q1 2025 was 5.5%, down 0.8 percentage points year-on-year, while the net margin was 2.1%, a decrease of 0.6 percentage points [1]. - The expense ratio slightly decreased to 3.8% in Q1 2025, down 1.0 percentage points year-on-year, with sales, management, and financial expense ratios at 1.3%, 2.5%, and 0.1%, respectively [1]. Business Development - The company’s mid-to-high-end talent search and flexible employment services showed a strong recovery in Q1 2025, successfully recommending 3,810 mid-to-high-end management and technical positions, a 22.4% increase year-on-year [2]. - The number of outsourced flexible employment positions reached 47,000, with a net increase of 1,900 from the previous quarter, and 68.3% of these positions were in technology and R&D, up 5.4 percentage points year-on-year [2]. - The company’s AI technology application in recruitment processes has significantly enhanced business development, with the AI screening assistant reducing screening workload by 80% and achieving 98% accuracy [2]. - The company registered over 16,000 partners on its platform, a 21.8% year-on-year increase, and the number of active participating partners grew by 76.9% to 20,000 [2]. Profit Forecast and Investment Recommendation - The company is projected to achieve net profits attributable to shareholders of 280 million yuan, 340 million yuan, and 460 million yuan for the years 2025, 2026, and 2027, respectively, indicating a compound annual growth rate of 31.0% [3]. - Given the company's strong correlation with the recruitment industry and expected market recovery, a valuation premium is anticipated, with a target price of 42.3 yuan based on a 30x PE for 2025 [3].