HRnetGroup enters UK via an opportunistic buy of Staffline; diversifies risks with new markets

SINGAPORE (Sept 9): Singapore Exchange Mainboard-listed recruitment company HRnetGroup, which has built a strong presence in Asia, can now consider the UK a key market segment as well after it made what it called an opportunistic acquisition.


HRnetGroup's business diversification amid economic uncertainty keeps it at 'add'

SINGAPORE (June 14): CGS-CIMB Research is keeping HRnetGroup at “add” but with a lower target price of $1.01 compared to $1.03 previously.

This came on the back of a survey released by ManpowerGroup, which showed that the net employment outlook for 3Q19 is relative stable, and expects a 12% growth for the next quarter, a 1 percentage point (pp) increase from the last quarter, but unchanged from the same period last year.

HRnetGroup downgraded to 'hold' on weaker earnings outlook, lower valuation

SINGAPORE (May 14): DBS Vickers Securities is downgrading its call on HRnetGroup to “hold” from “buy” with a lower price target of 85 cents compared to $1.05 previously on expectations of a weaker Singapore jobs market, which is believed to drag on the group’s earnings growing forward.

The research house is now anticipating FY19F core earnings to decline due to lower productive headcount (PHC), weaker jobs outlook for professional placement, and a loss of demand from fintech companies in Singapore.

HRnetGroup sees 18.5% 1Q earnings growth to $19.3 mil despite softer topline

SINGAPORE (May 10): HRnetGroup has announced earnings of $19.3 million of 1Q19, up 18.5% y-o-y from $16.3 million a year ago due to higher other income.  

Revenue for the quarter saw a 2.8% decline to $104 million from $107 million in 1Q18.

The lower group revenue was mainly due to lower placements closed in the Professional Recruitment division, which came on the back of cautious hiring on part of the group’s clients in Singapore. Nonetheless, HRnetGroup notes there was “excellent growth” for this division in Hong Kong, Mainland China, Japan and Thailand.

12 stocks that could get a boost from IR 2.0

SINGAPORE (Apr 5): The $9 billion investment to renew and refresh Singapore’s two integrated resorts (IRs) could provide some vibrancy to the domestic economy in the next few years and whip up some optimism in the city-state, says CGS-CIMB Research.

“The economic implication of this transformation will first be felt in the construction sector before having a multiplier effect on the rest of the economy via service-producing industries (jobs creation),” says analyst Lim Siew Khee in a Friday report.

HRnetGroup is on an expansion spree

SINGAPORE (Mar 1): HRnetGroup, the recruitment agency, has a few unique practices in its company, including a 20-minute daily exercise-and-meditation qigong routine to keep staff happy and healthy, as well as companywide internal meetings held on Saturdays, as the weekdays are “golden time” for staff to meet clients and call job candidates.

HRnetgroup out to nab China's workaholic job seekers

(Feb 27): In some quarters, a lack of work-life balance is not always a bad thing.

HRnetgroup, Singapore’s biggest recruiter and human resources firm, is hoping that expanding services in China will help lift its share price that has sagged since an initial public offering two years ago. China’s headhunting market is booming, thanks to the willingness of job seekers to work seven days a week, according to HRnetgroup’s Executive Director Adeline Sim.

HRnetGroup kept at 'buy' despite one-off losses, geopolitical challenges

SINGAPORE (Feb 25): RHB Research is keeping its “buy” call on HRnetGroup, despite the human resource recruitment agency getting rocked by non-core one-offs in the 4Q18 ended December.

4Q18 PATMI fell 48% to $6.3 million, mainly due to a one-off revaluation loss of $5.7 million and a one-off bad debt provision of $1.6 million.

“Excluding these one-offs, core PATMI would have risen 4.6% y-o-y to $13.6 million, in line with our estimates,” says lead analyst Jarick Seet in a Monday report.

2019 outlook for small-mid caps to hinge on US-China trade talks: RHB

SINGAPORE (Jan 7): RHB Research is keeping its “neutral” call on the small-mid cap sector amid US-China trade tension that could continue to weigh on the market.

“A potentially positive 2019 will hinge on the outcome of the trade talks between the US and China. If an agreement cannot be reached, the outlook will worsen, and a further correction for all markets is likely,” says lead analyst Jarick Seet in a report on Monday.

Market valuations may be inexpensive but stay defensive: RHB

SINGAPORE (Jan 2): RHB Research prefers to stay selective and defensive amid growth uncertainties in 2019.

The Straits Times Index (STI), down 12% in USD terms, could remain under pressure this year amid slowing GDP growth and an uncertain trade outlook due to China-US tensions.

In a Wednesday report, analyst Shekhar Jaiswal says, “While 12.6x forward P/E and 4.2% dividend yield make the STI’s valuations look compelling, we recommend investors stay selective and focus on buying stocks offering stable earnings, strong balance sheets, and sustainable dividends.”

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