Today, Monopoly is going to dismantle a relatively special leading stock, which belongs to the human resources industry and is the leader in the domestic "flexible employment" branch. It is the Hong Kong stock market Listed Company——Renrui Talent!
Disassemble this Only a single stock, mainly found in the recent re-listing of the low-valued leading target of Hong Kong stocks. The stock has been listed since 2019 last year. After the issuance and listing reached a high point, the stock price has fallen all the way to date. The current price is higher than the opening price of the issuance and listing. It is even lower, and the stock price has some signs of rebound in the short term, so considering the allocation of the low-valued leading stocks in Hong Kong stocks in the second half of the year, the stock is included in the stock pool as an observation object. Do a tracking disassembly:
Human Resources Industry
Segmentation of "Flexible Employment" Areas
About the word "flexible employment", here is a popular science for you: flexible employment is a subdivision in the "human resources" industry In the field of human resources, it is different from the previous human resource models of "labor dispatch" and "headhunting companies". It is an emerging and relatively scientific human resources model. At present, in major developed countries, this business model is very mature, and When valuing Renrui talents, it can also be compared with international leading companies. This emerging human resource model is particularly important in the context of today's domestic "demographic dividend recession". Especially after the baptism of the "pneumonia epidemic" in the first half of the year, some companies have a deeper understanding of the "labor cost" they use. The delivery of some human resources in order to better reduce the company's operating costs, better than similar crises!
[The difference between flexible employment and traditional labor dispatch]
At present, Renrui Talent is the only flexible employment service provider with an independent research and development O2O recruitment platform in China, and its number of flexible employment and total income ranks first in the industry. And most of the customers served are new economy customers (85% of revenue) and unicorn customers (33.2% of unicorns in the country are corporate customers), and they have renewed their contracts among customers with an income level of more than one million. The rate is as high as 100%, reflecting strong customer stickiness. Among them, technology Internet companies like "ByteDance" are its deep customers.
Flexible employment, the essence of this segment is actually a sharing economy: mainly to meet the needs of enterprises and individuals. It was born out of labor and job-seeking needs. "Flexible employment" mainly means that the company outsources "non-core and repetitive positions" to third-party service providers, and then the service providers organize personnel to complete the relevant business, and the service providers undertake all-round employment risks. A certain percentage of service fees are charged on the basis of personnel salaries (including social security, etc.).
And in terms of financial confirmation, flexible employment service providers are mainly based on candidates'Salary plus service fees are recognized as revenue, and costs are recognized as candidate salary. In addition, service providers generally need to pay candidates 1 to 3 months of salary in advance, and then settle with them uniformly afterward.
[ Flexible employment profit model ]
The benefits of this flexible working business model are:
①For enterprise customers: mainly relying on flexible employment to help enterprises solve employment flexibility, reduce the pressure on the back-office human resources department, and avoid labor disputes and employment risks. And especially in the case of the "pneumonia epidemic" in the first half of this year, companies' demand elasticity for "flexible employment" has potentially increased, and some companies are thinking about using this low-cost method to help companies survive similar industry crises .
②For candidates and job seekers: through flexible employment, they can enjoy jobs with a higher degree of freedom, and Get the chance to work or even stay in a big business.
Financial Physical Examination
Currently, Renrui Talent ranks No. 1 in the domestic "flexible employment" market in terms of market share one. As of 2019, there are 10,000 flexible labor suppliers in China, but whether it is calculated in terms of the number of flexible employees or income, Renrui talents maintains the first share in the domestic market. Its company has 19,400 flexible workers and a market share of 1.5%. Its flexible employment income is 1.5 billion yuan, with a market share of 2.5%.
Reviewing the operating performance of the stock in the past 5 years, it can be seen that the stock has always maintained a stable growth performance trend. During the period from 2016 to 2019, the compound annual growth rate of the stock's revenue side remained at around 83%. In the latest fiscal year of 2019, Renrui Talent's revenue was about 2.3 billion yuan, a year-on-year growth rate of 41%.
In 2019, the gross profit margin of its main business "flexible employment" business was 9%, since flexible employment income includes candidates' salaries and service fees, and costs include candidates' salaries and employees' travel expenses, etc. , so the book gross profit margin of flexible employment is low.
In 2019, the gross profit margin of Renrui Talent increased by 1.4% year-on-year, mainly due to the highest proportion of the gross profit margin of the flexible employment business promote.
Among them, in 2019, the sales expense rate and R&D expense rate of Renrui Talent were 1.9% and 0.6%, respectively. The overall trend is declining, and the scale effect is gradually emerging. However, the administrative expense ratio in 2019 was 3.9%, a slight increase, mainly due to the listing on the Hong Kong Stock Exchange at the end of last year, which led to increased costs and the impact of the cost of some share purchase plans. After excluding the fair value loss and listing of compound financial instruments After the expenses, the actual net profit margin of the stock is about 6%, which generally maintains a steady upward trend.
In the first half of the year, due to the impact of the pneumonia epidemic, some companies were not interested in the concept of "flexible employment". The human resource model has a new awareness, and after the crisis, companies are more willing to re-examine the internal organizational flexibility and the employment relationship between employees and companies. Judging from the current domestic demographic dividend recession, it is estimated that after the crisis Feiyang after the impact of the epidemic, large enterprises will pay more attention to the "flexible employment" model in the future human resources arrangement. At present, Renrui Talent's core customers include ByteDance, Mobike, Xiaohongshu, Tencent, NetEase, Ping An Finance Chengdu, Wuhan Vanke, DHL Chengdu, Shanghai Pudong Development Credit Card Center, Qunar, Anshi United (Chengdu), Guangzhou Akcome , Vienna Hotel and Lychee FM, etc.
Therefore, with the increasing awareness of flexible employment, it is estimated that the future development and The expansion of market share has a further positive boost.
In addition, since the stock was only listed on the Hong Kong Stock Exchange in December 2019, according to the stock's current stable performance Trend, it is estimated that the stock is expected to enter the Hong Kong Stock Connect in the second half of 2020 this year. It is expected to announce this matter in the middle and late August, and it will take effect on the first Friday of September.
In order to enter Hong Kong Stock Connect, there are generally the following requirements and restrictions for companies:
(1) Market value requirements: The average market value of the company in the seven months since its listing is 6.05 billion Hong Kong dollars, and generally 5 billion can enter the Hong Kong Stock Connect.
(2) It is necessary to enter the Hang Seng Index: the quantitative indicator of the composite index is to rank the top 95% of the total market capitalization. 5.5-6 billion will be able to enter the Hang Seng Index, but this year may be affected by the return of some unicorns to Hong Kong stocks, and the market value threshold will be higher.
(3) The HSI internal expert committee will also have a subjective voting mechanism, such as whether the new stock pair portfolio has Help, whether it can bring diversification, if they meet their voting requirements, they may not be able to enter if the market value is not enough. As a flexible employment target, it is more representative for companies to enter the HSI.
(4) Circulation ratio: the average daily trading volume of the current month/the free-floating share capital at the end of the current month shall not be less than 0.05%, and the company shall be in circulation The ratio is basically 0.5%-1.4%, which fully meets the requirements.
Judging from the current business performance of Renrui Talent, the above selection conditions are basically compounded.
[ Renrui Talent and Comparison of the operation of foreign leading human resources companies]
It is estimated that the operating income of the stock in 2020 will be about 3 billion , the growth rate may increase by about 31%. Among them, the net profit attributable to the parent is estimated to be around 150 million, and the growth rate is likely to decline by 119%. At present, the corresponding PE ratio of the stock is about 27 times, and considering that it will benefit from the development of the "flexible employment" field in China in the next two years, it is estimated that the compound annual growth rate of net profit from 2020 to 2022 will be 53 %, which is relatively undervalued. In addition, combined with reference to the stock's historical operating performance, Monopoly's valuation of the stock is calculated to be around HK$40. There is still a certain arbitrage space between the current valuation and the market price. You can pay attention to the allocation opportunities of the stock in the second half of the year. !
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