The company’s two biggest markets, Singapore and North Asia, took the brunt of the faltering economic recovery as seen in the sharp slowdown in its professional recruitment segment, according to Ong. Revenue for the segment slumped 34% y-o-y to $34.3 million in 1HFY2023 against the backdrop of strong economic headwinds that affected hiring sentiment across most sectors, especially in the mid-to-senior level.
Maybank Research, PhillipCapital and RHB Bank Singapore have lowered their target prices for HRnetGroup to 80 cents, 88 cents and 91 cents, respectively, down from 85 cents, 98 cents and $1 previously. Maybank has kept its “hold” call, while PhillipCapital and RHB have maintained “buy” on the staffing company.
In his report dated Aug 13, Maybank analyst Eric Ong says he is waiting for “dark clouds” over the challenging job market to pass after HRnetGroup recorded a soft 1HFY2023 ended June 30 core performance with its patmi down 18.3% y-o-y to $28.3 million.
