Core Viewpoint - The report from China International Capital Corporation (CICC) indicates that the social services industry is expected to stabilize and bottom out in 2025 after experiencing price pressures and same-store sales declines in 2024, with a gradual easing of price wars and a potential recovery in same-store sales [1] Industry Summary - The social services industry is projected to see a recovery in 2026, driven by domestic demand recovery and policy expansion, with a focus on companies with strong internal growth capabilities and high-growth segment leaders [1] - The restaurant sector, particularly beverages, will face challenges in 2026 due to high base effects and competitive landscape disruptions, but leading brands are expected to achieve stable performance and gradually replace smaller chains [1] - The fast food segment shows resilience, while the full-service restaurant brands will experience ongoing differentiation in same-store sales [1] - The hotel industry is anticipated to rebalance supply and demand, with a slowdown in supply growth expected despite positive growth, as RevPAR (Revenue Per Available Room) continues to decline for two years [1] - The recovery of business demand is crucial for RevPAR to turn positive, with high-quality leading brands likely to expand market share even during industry downturns [1] - The labor service sector exhibits strong cyclical attributes, with a long-term trend of increasing flexible employment penetration [1] - Duty-free sales are at a low point, with attention on the marginal changes brought by the Hainan closure and the expansion of local channels [1] - The tourism sector faces price pressures and cost inputs that may weaken performance stability, with a focus on the development of scenic projects and improvements in transportation as potential catalysts [1]

Summary of Conference Call Transcripts Industry and Company Overview - **Industry**: Human Resources, Mechanical, Detection, Lubricants, Gaming - **Companies**: 科锐国际 (Core International), 华测检测 (China Measurement), 广电计量 (Broadcast Measurement), 利安隆 (Lianlong), 恺英网络 (Kaiying Network) Key Points and Arguments Market Dynamics - The current market is experiencing a battle between profit-taking in high-performing sectors and new capital entering the market, particularly in the mechanical industry, which may have a 10% downside potential [2][2][2] - The stabilization of the Hong Kong stock market suggests that the A-share market's sector rotation may take longer than expected, emphasizing the importance of performance metrics in the coming months [2][2][2] Core International (科锐国际) - The flexible employment business is benefiting from the growing demand for talent optimization and digital transformation, with initial positive results from AI investments [1][4][4] - Despite fluctuations in Q3 operational metrics leading to a stock price decline, the end of a share reduction plan has alleviated pressure on the stock [1][5][5] - The company is expected to achieve a performance target of 300 million yuan in 2025, with a current valuation of approximately 18 times earnings, which is at a multi-year low [1][5][5] Detection Sector - 华测检测 and 广电计量 have exceeded market expectations, indicating a positive trend in the detection sector, which remains undervalued [1][6][6] - The detection sector is showing signs of improvement, with a strong outlook for Q3 2025 and increased confidence for 2026 [1][7][7] 华测检测 (China Measurement) - The company showed significant improvement in non-Beijing regions and accelerated international acquisitions, which are expected to contribute positively to future revenues [1][8][8] - Management changes and strategic adjustments have provided confidence for the company to return to profitability [1][8][8] 利安隆 (Lianlong) - The company reported better-than-expected Q3 2025 results, driven by a rapid recovery in lubricant additive profit margins and effective cost control [1][10][10] - A framework cooperation agreement with overseas lubricant clients lays a foundation for future growth [1][10][10] 恺英网络 (Kaiying Network) - The company anticipates significant acceleration in growth due to the expansion of its "996 Box" channel business and exclusive licensing of legendary IP in China [1][11][11] - The partnership with major publishers and the establishment of brand zones within the "996 Box" are expected to strengthen core business growth [1][11][11] Future Outlook - The overall sentiment for the detection sector is optimistic, with expectations of improved performance in Q3 2025 and beyond, particularly in innovative sectors like pharmaceuticals and aerospace [1][7][7] - The gaming market, particularly for 恺英网络, is projected to grow significantly due to increased control over IP and market share expansion [1][13][13][14][14] Investment Timing - Current market conditions present a favorable opportunity for investing in 恺英网络, as the gaming sector has recently adjusted, making valuations more attractive [1][15][15][15] Additional Important Insights - The flexible employment sector is increasingly penetrating various enterprises, helping to mitigate risks and optimize talent structures [1][4][4] - The detection sector's historical low valuations present potential investment opportunities as the industry shows signs of recovery [1][7][7]

Core Insights - Shenzhen is identified as a core hub for high-tech industries in China, with a projected talent gap of 236,000 in strategic emerging industries by 2025 [1] - The headhunting industry plays a crucial role in talent allocation within the industrial chain, as highlighted by a comprehensive ranking based on various performance metrics [1] Industry Overview - The ranking of headhunting companies in Shenzhen has been updated, indicating a significant industry shake-up in Q4 [3][4][7][14] - The evaluation criteria for the ranking include company size (30%), talent delivery rate (25%), customer NPS (20%), talent pool quality (15%), and technological innovation (10%) [1] Company Rankings - 1st: 万博恒猎头 (Manbo Headhunting) - Local industry leader [3] - 2nd: 光辉国际 (Korn Ferry) - Established in 1969, focusing on financial and educational sectors [4] - 3rd: 展动力 (ZDL) - National-level human resources service demonstration institution with a strong presence in 28 core cities [4] - Achieved a talent delivery success rate of 88.6% and a customer renewal rate of 98.7% [4] - 4th: 猎聘网 (Liepin) - Enhanced AI algorithms leading to a 40% increase in matching efficiency [7] - 5th: 科锐国际 (Career International) - Known for flexible employment services in finance and construction [8] - 6th: 智联卓聘 (Zhaopin Pro) - Focused on building talent supply chains in the manufacturing sector [9] - 7th: 锐仕方达 (Risfond) - Specializes in technical talent recruitment in the energy and chemical sectors [10] - 8th: 仲望咨询 (Zs Associates) - Core services in manufacturing and real estate with a 61% renewal rate in 2025 [11] - 9th: 对点咨询 (DDS) - Focused on the internet healthcare sector with a comprehensive talent database [12] - 10th: 万宝盛华 (ManpowerGroup) - Experienced a 27% year-on-year growth in the Shenzhen region [14] Research Methodology - The ranking is based on independent research and does not involve commercial partnerships, aiming to provide objective references for companies seeking service providers [15]

Core Viewpoint - Beijing International Human Capital Group Co., Ltd. (referred to as "Beijing International Human Capital" or "FESCO") showcased its innovative practices in the global talent service sector at the Beijing International Fair for Trade in Services, emphasizing its role as an official partner providing professional, standardized, and intelligent human resource services [1][5]. Group 1: City Aggregation - The "City Aggregation" section highlighted three major platforms: "Jingqi Direct Recruitment," "Easy Beijing," and the Global Innovation Service Network (GNIS), demonstrating the company's proactive layout and resource integration capabilities in supporting national strategies and promoting international talent mobility [3]. - The company aims to achieve a win-win situation for talents, enterprises, and cities through its global service network and localized platform construction [3]. Group 2: Technology Aggregation - The "Technology Aggregation" section focused on the transformation of talent demand in the AI era, showcasing how AI technology drives the transition of human resource services from "efficiency enhancement" to "value creation" [3]. - The AI recruitment solution presented covers the entire lifecycle of talent recruitment, enhancing efficiency in resume screening, interview evaluation, and job matching, thus shifting recruitment focus from "cost center" to "value center" [3]. Group 3: Efficiency Aggregation - The "Efficiency Aggregation" section shared recent research findings on urban talent development, new productivity transformation, and diversified employment models, providing theoretical support for the high-quality, global development of China's human resource service industry [3]. - The company showcased leading service solutions such as flexible employment and enterprise overseas expansion, effectively responding to industry demands and supporting enterprise development [3]. Group 4: Company Background and Future Plans - As China's first human resource service agency and one of the largest comprehensive human service enterprises, Beijing International Human Capital has been in the industry for 46 years, with a service network covering over 400 cities nationwide and reaching more than 100 countries and regions [5]. - The company has formed a professional service team for the fair, employing standardized service processes and a comprehensive quality monitoring system to ensure professional standards are met [5]. - Looking ahead, Beijing International Human Capital aims to explore innovative applications and development models of human resource services in the service trade sector, contributing to the high-quality development of China's service trade [5].

Group 1 - Core viewpoint: Keri International has experienced a decline in stock price, dropping 0.88% to 30.33 CNY per share, with a total market value of 5.969 billion CNY and a cumulative drop of 9.08% over the last four days [1] - Company overview: Keri International, established on December 5, 2005, and listed on June 8, 2017, is based in Beijing and specializes in technology-driven human resource solutions [1] - Revenue composition: The main business revenue breakdown includes flexible employment at 95.22%, mid-to-high-end talent search at 2.77%, other services at 0.84%, recruitment process outsourcing at 0.64%, and technical services at 0.54% [1] Group 2 - Fund holdings: The Fuguo Fund has a significant position in Keri International, with its Fuguo Growth Mixed Fund (161040) increasing its holdings by 460,500 shares, totaling 1,166,700 shares, representing 4.09% of the fund's net value [2] - Fund performance: The Fuguo Growth Mixed Fund has achieved a return of 54.05% year-to-date, ranking 506 out of 8,180 in its category, and an annual return of 88.09%, ranking 549 out of 7,967 [2] - Fund manager: The fund manager, Cao Jin, has a tenure of 12 years and 140 days, with the fund's total asset size at 8.549 billion CNY and a best return of 367% during his management [3]

Core Insights - The company reported a revenue of 7.07 billion yuan for the first half of 2025, representing a year-on-year increase of 27.7%, and a net profit attributable to shareholders of 130 million yuan, up 47.0% [1] - The growth in flexible employment income and personnel is notable, with flexible employment revenue reaching 6.74 billion yuan in the first half of 2025, a 29.3% increase [2][3] - The company has seen a significant recovery in its Hong Kong and overseas business, with revenue from these regions growing by 5.1% to 1.22 billion yuan [2] Revenue and Profit Growth - In Q2 2025, the company experienced a year-on-year revenue growth rate of 30%, with net profit growth at 51% [2] - The revenue growth rates for the upcoming quarters are projected at 23% for Q3 2024, 25% for Q4 2024, 25% for Q1 2025, and 30% for Q2 2025 [2] Flexible Employment and Outsourcing - The number of flexible employment positions and experts has increased to over 49,500, a growth of approximately 28% compared to the end of 2024 [2] - Revenue from recruitment process outsourcing has shown a significant increase of 26.8% to 4.51 million yuan in the first half of 2025 [2] Profit Margins and Cost Management - The overall gross margin decreased by 1.2 percentage points to 5.5%, primarily due to a decline in the gross margin of flexible employment services [3] - The company has successfully reduced its expense ratios across various categories, including sales, management, and R&D [3] Technological Advancements - The company has been developing industry-level models based on large-scale computing since 2023, with several models released in the first half of 2025 [3] - The introduction of AI applications on the He Wa platform has enhanced operational efficiency, with over 1,500 new registered partners and a significant increase in delivery consultants [4] Investment Outlook - The company maintains a positive outlook with projected net profits of 289 million yuan, 358 million yuan, and 420 million yuan for 2025 to 2027, respectively [5] - The current stock price corresponds to a price-to-earnings ratio of 22x, 18x, and 15x for the respective years, supporting a "buy" rating [5]

Core Insights - The rise of flexible employment is transforming traditional labor models, driven by technological innovation and the gig economy, with the Chinese market expected to exceed 420 billion yuan by 2023, reflecting a compound annual growth rate of 23.6% from 2014 to 2018 [2] Group 1: Benefits of Flexible Employment for Companies - Cost reduction and efficiency improvement are immediate benefits, with manufacturing firms reducing labor costs by 30% during peak seasons through flexible employment [2] - Companies in the internet sector can enhance operational efficiency by over 40% by quickly matching technical talent to project-based work demands [2] - Flexible employment allows seasonal industries, such as tourism and agriculture, to address short-term labor needs effectively, leading to a 25% year-on-year sales increase for a retail chain during peak periods [3] Group 2: Risk and Cost Mitigation - Traditional labor relationships expose companies to risks such as social security payments and labor disputes, while flexible employment reduces these risks by shifting some labor forms to civil legal relationships [4] - The model also minimizes costs associated with recruitment, training, and management, allowing companies to operate more efficiently [4] Group 3: Meeting Talent Demand - The changing employment preferences of younger workers favor work-life balance, which flexible employment can provide, allowing individuals to control their work hours and locations [5] - Surveys indicate that 38% of workers seek to increase income through flexible work, while 33% aim to develop new skills, and 32% prioritize control over their work schedules [5] Group 4: Rapid Market Development - The demand for flexible employment is particularly strong in economically developed regions like the Yangtze River Delta and Pearl River Delta, where labor costs are high and regulations are strict [7] - The internet, manufacturing, and retail sectors are the primary drivers of flexible employment, with these industries leading in the adoption of flexible work arrangements [7] - Future trends indicate that flexible employment will evolve towards compliance and intelligence, supported by improved policies and the application of big data and artificial intelligence to enhance matching efficiency and service quality [7]

Group 1 - The flexible employment market is expanding, with 83.3% of surveyed companies indicating a demand for flexible employment and 73.2% already utilizing it [1] - Companies are increasingly adopting flexible employment to reduce labor costs and mitigate risks associated with human resource management [3] - Flexible employment allows companies to meet temporary hiring needs due to project development, business expansion, or employee leave [3] Group 2 - Many enterprises face challenges with full-time employee quotas, making flexible employment a new trend that does not occupy these quotas [5] - Flexible employment provides high-quality and efficient service delivery for non-core positions, allowing companies to focus on core business areas [5][6] - The service includes comprehensive human resource management, from recruitment to labor relations and risk management, ensuring high standards and delivery capabilities [6]