This model ensures that HRnetGroup’s managers are incentivised to collaborate, rather than compete, with each other. “This fosters a culture that competitors cannot easily poach or reproduce,” Ong adds, noting that the scalability of the model has been proven by how HRnetGroup was able to expand into new markets like Vietnam and Taiwan.
Maybank analyst Eric Ong has re-initiated coverage on HRnetGroup (SGX:CHZ
) with a “buy” call and a target price of 87 cents. The Mainboard-listed recruitment agency was founded in 1992 and went public in 2017.
“Beyond just being a regional recruiter, we believe HRnet is structurally difficult to replicate,” writes Ong in an April 19 report, noting that the company operates on a co-ownership model involving 47 business leaders holding equity stakes in HRnetGroup.
