BURTC(SH:600861)2024-05-08 01:44Summary of the Conference Call on Human Resources Industry Update Industry Overview - The conference focused on the human resources industry in China, specifically discussing the performance of companies such as 科锐国际 (Core International) and 北京人力 (Beijing Human Resources) [1][3]. Key Points and Arguments 1. Revenue Growth: The income growth rate for flexible workers in the domestic market is reported at 17% [1]. 2. Market Trends: In April, the number of temporary workers at 科锐 increased, showing a positive trend with a 15% increase for 科锐 and an 80% increase for 北京人力 [3]. 3. Competitive Landscape: The competitive environment in the human resources sector is expected to improve slightly, with companies focusing on cost reduction and supplier pricing pressures [3][4]. 4. Quality Growth: The focus for 2024 is on maintaining pricing and gross margins while achieving stable growth, particularly in the outsourcing business [4][5]. 5. Client Segments: There is a notable demand for services from non-core clients in sectors such as energy, storage, and technology, indicating potential growth opportunities [6]. 6. Outsourcing Expansion: 科锐 has successfully expanded its outsourcing services in the power sector, including wind, solar, and nuclear energy [7]. 7. Headhunting Business: The headhunting segment faced challenges in 2023 but has shown signs of improvement in 2024, with an increase in job offers since September of the previous year [8][9]. 8. Cost Control: The headhunting business has implemented cost control measures, which are expected to positively impact profitability in the second quarter and the latter half of the year [10]. 9. International Business: The overseas business accounts for 25% of the company's revenue, with ongoing investments in the UK and Southeast Asia to support Chinese companies' global talent needs [11][12]. 10. Valuation Metrics: The current valuation of 科锐 is at 18.9 times earnings, which is below the industry average of 30-35 times, indicating potential for upward adjustment [19][21]. 11. Profit Distribution: 北京人力 has a profit distribution policy that mandates a minimum of 50% of distributable profits to be allocated to shareholders, which could yield a dividend yield close to 4% [23]. 12. Growth Projections: The company anticipates a steady growth rate of 10-15% for the year, supported by industry trends and competitive advantages [24]. Additional Important Insights - The overall penetration rate of flexible employment in China remains low, between 4% and 10%, suggesting room for growth in the sector [14][16]. - The potential tightening of regulations regarding employee benefits could disadvantage smaller firms while benefiting larger, compliant companies [15]. - The conference emphasized the importance of monitoring the competitive landscape and the potential for improved contract renewals in the coming year [7][8]. This summary encapsulates the key insights and projections discussed during the conference call, highlighting the current state and future outlook of the human resources industry in China.