Group 1 - The company plans to hold the AI 2.0 ecosystem anniversary conference on July 17, showcasing its human resources service platform that leverages AI to enhance the entire recruitment process, breaking down industry collaboration barriers and improving delivery efficiency [1] - From a headhunting perspective, AI can replace manual resume screening and improve client acquisition efficiency [1] - The company has updated its Candidate Tracking System (CTS) using AI technology, enabling automatic matching notifications upon receiving new resumes, generating customized recommendation reports, and enhancing the efficiency of candidate tracking [1] - A new Voice Phone Client has been launched, allowing direct candidate calls and automatic summary text generation of contact records, significantly improving efficiency compared to previous methods [1] - The CRM system has been upgraded to allow real-time searches of public recruitment information, assess the likelihood of companies using HR service agencies, and includes AI subscription features for precise client outreach [1] Group 2 - The company is internally testing an Agent prototype system aimed at flexible application and continuous evolution of technology [2] - In recruitment scenarios, the company is developing a CRE T1 model based on reinforcement learning to address complex matching tasks and implicit constraints in job descriptions [2] - The company remains optimistic about the efficiency improvements from technology empowerment and the potential for collaborative effects across various business lines, as well as the increase in demand for human resources due to domestic clients' overseas expansions [2]

Core Viewpoint - The company reported strong revenue and profit growth in Q1 2025 and for the full year 2024, driven by its flexible employment business and digital transformation initiatives [1][3][4]. Financial Performance - In Q1 2025, the company achieved revenue of 3.3 billion yuan, a year-over-year increase of 25.1%, and a net profit attributable to shareholders of 60 million yuan, up 42.1% year-over-year [1]. - For Q4 2024, the company reported revenue of 3.27 billion yuan, a 25.4% increase year-over-year, and a net profit of 70 million yuan, up 44.2% year-over-year [1]. - The total revenue for 2024 was 11.79 billion yuan, reflecting a year-over-year growth of 20.5%, with a net profit of 210 million yuan, an increase of 3.6% year-over-year [1]. Cash Flow and Margins - The operating cash flow for 2024 was 118 million yuan, with a gross margin of 6.4%, down 0.9 percentage points year-over-year [2]. - In Q1 2025, the gross margin was 5.5%, a decrease of 0.8 percentage points year-over-year, while the sales expense ratio was 1.25%, down 0.22 percentage points year-over-year [2]. Business Segments - The flexible employment business grew robustly in 2024, with revenue of 11.1 billion yuan, a year-over-year increase of 22.42% [3]. - The high-end talent search business saw a revenue decline of 11.6% year-over-year, while the recruitment process outsourcing business decreased by 18.27% year-over-year [3]. - The mainland business revenue was 9.5 billion yuan, up 28.67% year-over-year, while the revenue from Hong Kong, Macau, Taiwan, and overseas was 2.3 billion yuan, down 4.39% year-over-year [3]. Technological Advancements - The company invested 169 million yuan in technology in 2024, with 41% allocated to internal information systems and 59% to digital product development [4]. - The "He Wa" platform achieved significant growth, with over 16,000 registered partners and a 21.76% year-over-year increase in registrations [4]. Profit Forecast - The company forecasts revenues of 14.3 billion yuan, 17.1 billion yuan, and 20.4 billion yuan for 2025, 2026, and 2027, respectively, with year-over-year growth rates of 21%, 20%, and 19% [5]. - The net profit attributable to shareholders is expected to be 270 million yuan, 340 million yuan, and 430 million yuan for the same years, with growth rates of 31%, 28%, and 24% [5].

Investment Rating - The investment rating for the company is "Buy" [7] Core Views - The company has shown strong performance with a 42% year-on-year increase in net profit attributable to the parent company in Q1 2025, driven by multiple factors including flexible employment growth and recovery in overseas and headhunting services [1][4] - The company is expected to benefit from the increasing demand for high-value technical positions and the recovery of its overseas and headhunting businesses, leading to an upward revision of profit forecasts for 2025 to 2027 [4] Financial Overview - In 2024, the company reported revenues of 11.79 billion with a year-on-year growth of 21%, and a net profit of 205 million, reflecting a 2% increase [1] - For Q1 2025, revenues reached 3.3 billion, marking a 25% increase year-on-year, with a net profit of 57.78 million, up 42% from the previous year [1] - The company’s revenue breakdown for 2024 shows that flexible employment services accounted for 94.5% of total revenue, with a year-on-year growth of 22% [2] Business Segmentation - The flexible employment segment remains the core driver of growth, while headhunting services have shown signs of recovery with a 22% increase in successful placements in Q1 2025 [3] - The company’s overseas revenue has shown a narrowing decline, suggesting a potential turning point in 2025 as management synergies improve [2][3] Profit Forecast and Valuation - The company is projected to achieve net profits of 291 million, 353 million, and 423 million for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 41.93%, 21.11%, and 19.87% [4][6] - The current market valuation corresponds to a price-to-earnings ratio of 20.8X for 2025, 17.2X for 2026, and 14.3X for 2027 [4][6]

Core Insights - The company, Core International, is leveraging a "four transformations" strategy—professionalization, internationalization, digitalization, and ecologicalization—to navigate global economic uncertainties and competitive labor markets [1] Financial Performance - In Q1 2024, Core International reported revenue of 3.303 billion yuan, a year-on-year increase of 25.13%, and a net profit of 57.7839 million yuan, up 42.15% [1] Growth Drivers - Key growth drivers include structural recovery in recruitment demand, emerging industries, and rapid growth in flexible employment services [1] - The company's digital transformation and AI technology adoption are also significant contributors to growth [1] AI Strategy - In 2024, Core International established an AI-First strategy, focusing on integrating AI models with mid-to-high-end recruitment scenarios [2] - The company has developed a Match System to enhance matching efficiency between job requirements and candidates, utilizing a large dataset accumulated over 30 years [2] Digital Transformation - The digital transformation is yielding performance improvements by enhancing internal collaboration, accelerating business processes, and reducing operational costs [3] - The new technology business has seen a revenue increase of 44.18% year-on-year, indicating effective conversion of R&D investments into business growth [3] AI Product Development - The company has launched the Voice Agent phone client, which automates candidate outreach and contact record generation [4] - Plans include upgrading the Voice Agent to enable AI-driven phone outreach and enhancing the Core Relationship Network model [4] Strategic Focus - Core International remains committed to its "four transformations" strategy, emphasizing professionalization, internationalization, digitalization, and ecologicalization [6] - The company aims to build a global service system while focusing on high-quality clients and emerging industries [6] Ecological Collaboration - The He Wa platform aims to create an ecosystem that promotes resource sharing and capability aggregation among industry partners [7] - The future competitive landscape will focus on collaborative efficiency rather than individual resource competition [7]

Core Insights - The company reported a revenue of 11.79 billion in 2024, representing a year-on-year increase of 20.5%, with a net profit attributable to shareholders of 205 million, up 2.4% [1] - In Q1 2025, revenue reached 3.3 billion, marking a 25.1% increase, while net profit attributable to shareholders surged by 42.2% to 577.8 million [1] - The flexible workforce business showed steady growth, although recruitment-related revenue experienced a slight decline, which is narrowing each quarter [1] Revenue Breakdown - For 2024, the flexible workforce segment generated 11.14 billion, up 22.4%, with a gross margin of 5.47%, down 0.76 percentage points [1] - The headhunting segment saw revenue of 370 million, down 11.6%, with a gross margin of 26%, down 0.58 percentage points [1] - The process outsourcing segment reported revenue of 60 million, down 18.3%, but with a gross margin of 18.2%, up 4.61 percentage points [1] Geographic Performance - Revenue from mainland China reached 9.49 billion in 2024, up 28.7%, while overseas revenue was 2.3 billion, down 4.4%, primarily due to macroeconomic factors affecting recruitment demand in Europe and the U.S. [2] - The client structure showed an increase in private enterprise clients, with 72% of service fee revenue coming from private enterprises, 16% from foreign/ joint ventures, and 12% from government/state-owned entities [2] Technology and Innovation - The technology segment experienced rapid growth, with revenue of 60 million in 2024, up 44%, and technology investment of 169 million [3] - The "He Wa" platform has been a key driver, with 16,200 registered partners and 156,000 registered consultants as of Q1 2025, reflecting increases of 22% and 31% respectively [3] - The company launched an AI resume screening assistant and upgraded its pre-trained language model, enhancing its operational efficiency [3] Financial Metrics - The company's gross margin was 6.36% in 2024, down 0.95 percentage points, while the net profit margin in Q1 2025 was 2.07%, up 0.58 percentage points [3] - Sales, management, R&D, and financial expense ratios were 1.41%, 2.35%, 0.35%, and 0.24% respectively, with some costs decreasing while interest expenses increased due to new borrowings [3] Investment Outlook - The flexible workforce business is expected to continue stable growth, with projected net profits of 260 million, 310 million, and 360 million for 2025-2027, representing year-on-year growth of 27%, 20%, and 16% respectively [4] - The company is assigned a price-to-earnings ratio of 26, 21, and 18 for the respective years, with an initial coverage rating of "Buy" [4]

Group 1: Company Strategy and Market Position - The company emphasizes a strategic focus on "Four Transformations": Professionalization, Internationalization, Digitalization, and Ecologicalization to adapt to changing market conditions [3][4]. - The company has established over 10 branches in 8 countries, including the UK, US, and Germany, to enhance its global service capabilities [4]. - The company aims to leverage AI technology to improve service efficiency and client matching, transitioning from "Software as a Service" to "Service as Software" [4][10]. Group 2: Financial Performance - In 2024, the company achieved a revenue of 11.787 billion RMB, a year-on-year increase of 20.55% [6]. - The net profit attributable to shareholders was 205 million RMB, reflecting a growth of 2.42% compared to the previous year [6]. - The company plans to distribute a cash dividend of 1.6 RMB per 10 shares, totaling approximately 31.49 million RMB [8]. Group 3: Business Segments and Growth - The flexible employment business revenue grew by 22.42% in 2024, with over 45,500 outsourced employees and independent consultants [7]. - The technology service revenue saw a significant increase of 44.18% in 2024, indicating strong demand in this sector [7]. - Recruitment business revenue decreased by 12.52% due to a reduction in demand for mid-to-high-end recruitment services [7]. Group 4: Operational Efficiency and Cost Management - The company reduced sales expenses by 8.97% in 2024, optimizing marketing investments [8]. - Management expenses increased by 8.42% primarily due to the expansion of overseas operations and system upgrades [8]. - The company is actively pursuing cost-saving measures, which are expected to yield results in the future [8]. Group 5: Technological Advancements - The company has developed the Match System to enhance client, position, and talent matching efficiency, with significant data resources utilized [9]. - AI technology is being integrated into recruitment processes, with a focus on improving matching efficiency for high-end positions [9][10]. - The company is exploring the application of AI in various HR functions beyond recruitment, aiming for comprehensive service enhancement [10][11].

Investment Rating - The report assigns a rating of "Buy" for the company, with a target price based on the latest closing price of 32.91 [5]. Core Insights - The company achieved a total operating revenue of 11.788 billion yuan in 2024, representing a year-on-year growth of 20.55%. The net profit attributable to shareholders was 2.05 billion yuan, an increase of 2.42% year-on-year. In Q1 2025, the company reported total operating revenue of 3.303 billion yuan, a year-on-year increase of 25.13%, and a net profit of 0.58 billion yuan, up 42.15% year-on-year, with a non-recurring net profit growth of 103% [1][3]. Summary by Sections 1. Stable Demand for Flexible Employment - The flexible employment segment showed resilience, driving steady revenue growth. In 2024, the company’s operating revenue reached 11.8 billion yuan, with flexible employment revenue growing by 22% [2][14]. - In Q1 2025, the company’s flexible employment service dispatched 146,000 personnel, a year-on-year increase of 26% [2][14]. 2. Profit Improvement through Cost Reduction and Government Subsidies - The company’s net profit for 2024 was 205 million yuan, with a non-recurring net profit of 139 million yuan, reflecting a year-on-year increase of 2.4% and 3.57%, respectively. In Q1 2025, net profit and non-recurring net profit grew by 42% and 103% year-on-year, respectively, primarily due to increased government subsidies and effective cost control [3][33]. 3. AI Development and Growth of HeWa Platform - The company invested 169 million yuan in technology in 2024, maintaining annual investments above 100 million yuan since 2021. The HeWa platform saw significant growth, with registered partners increasing by 21.76% year-on-year to over 16,200 [4][41]. 4. Earnings Forecast - The company is expected to achieve operating revenues of 14.779 billion yuan, 18.024 billion yuan, and 21.266 billion yuan for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 25%, 22%, and 18%. The net profit attributable to shareholders is projected to be 278 million yuan, 337 million yuan, and 395 million yuan for the same years, with corresponding growth rates of 35%, 21%, and 17% [8][46].

Core Insights - The company reported a revenue of 11.788 billion yuan for 2024, representing a year-on-year growth of 20.55%, and a net profit attributable to shareholders of 205 million yuan, up 2.42% year-on-year, slightly exceeding previous forecasts [1] - In Q1 2025, the company continued its recovery trend with a revenue of 3.303 billion yuan, a year-on-year increase of 25.13%, and a net profit of 57.78 million yuan, up 42.15% year-on-year [1] Group 1: Business Performance - The flexible employment model is the main driver of revenue growth, with the number of outsourced flexible employees exceeding 47,400 as of Q1 2025, showing significant improvement over the last five quarters [2] - The company’s domestic business is recovering well, supported by policies promoting employment and domestic demand, which enhances the profitability elasticity of recruitment services [4] Group 2: AI and Technology Integration - The company has integrated its industrial interconnection platforms and deepened the application of AI in business processes, launching several AI-enabled tools that significantly reduce workload and improve accuracy [3] - The platform "禾蛙" delivered over 15,000 positions in Q1 2025, marking a year-on-year growth of 119.05%, indicating strong demand for AI-enabled services [3] Group 3: Financial Projections - The company has raised its profit forecasts for 2025, 2026, and introduced projections for 2027, expecting net profits of 297 million yuan, 350 million yuan, and 403 million yuan respectively, reflecting significant upward adjustments [4] - The target price for the company is set at 37.77 yuan based on a 25x PE ratio for 2025, indicating a strong market position and operational efficiency [4]

Core Viewpoint - The company's 2024 performance is in line with expectations, showing revenue growth and a slight increase in net profit, driven by stable growth in flexible employment and improved operational efficiency through AI technology [1][2]. Financial Performance - In 2024, the company reported revenue of 11.79 billion, a year-on-year increase of 20.5%, and a net profit attributable to shareholders of 210 million, up 2.4% [1]. - The quarterly breakdown for 2024 shows revenue growth of 10.3%, 22.9%, 23.1%, and 25.4% for Q1 to Q4, respectively, with net profit growth of 22.1%, -29.2%, -9.6%, and 44.2% [1]. - For Q1 2025, revenue increased by 25.1% to 3.30 billion, and net profit rose by 42.1% to 60 million, benefiting from the growth in flexible employment and AI applications [1]. Business Segments - Flexible employment revenue grew by 22.4% to 11.14 billion, with the number of dispatched personnel increasing by 30% to 499,000, although average revenue per person decreased by 4.8% to 22,000 due to the employment environment [2]. - Recruitment and RPO businesses faced challenges, with revenues declining by 11.6% and 18.3% to 370 million and 60 million, respectively, but a recovery is expected in Q1 2025 [2]. - Technical services revenue increased by 44.2% to 6 million, driven by operational and technical enhancements in the HeWa platform [2]. Cost Management and Efficiency - Gross margins decreased by 1.0 and 0.8 percentage points to 6.4% and 5.5% for 2024 and Q1 2025, respectively, due to the rapid expansion of flexible employment [3]. - The company improved its cost structure, with sales and management expense ratios decreasing, leading to a slight increase in net profit margins for Q1 2025 [3]. AI Technology Development - The company accelerated AI technology research and application, launching the AI screening assistant 1.0 in Q1 2025, which reduces screening workload by 80% with 98% accuracy [3]. - As of March 2025, the HeWa ecosystem registered 16,200 partners and 156,000 delivery consultants, showing significant growth in active participants [3]. Profit Forecast and Valuation - The profit forecast for 2025 is maintained at 280 million, with a new forecast of 320 million for 2026, resulting in a P/E ratio of 24 and 21 times for 2025 and 2026, respectively [4]. - The target price is raised by 67% to 40, indicating a 17% upside potential from the current stock price, supported by improving market conditions and AI technology implementation [4].

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].