HRnetGroup Ltd. (CHZ) AI Stock Analysis

• Market Cap: S$730.71M
• Dividend Yield: 5.58%
• Average Volume (3M): 599.16K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.28
• Revenue Growth: 1.23%
• EPS Growth: -10.36%
• Country: SG
• Employees: 1,056
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 0.03
• Shares Outstanding: 989,098,750
• 10 Day Avg. Volume: 549,260
• 30 Day Avg. Volume: 599,156
• PEG Ratio: -0.51
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 1.18
• P/FCF Ratio: 13.51
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: S$1.00 ▲(35.14% Upside)

HRnetGroup Ltd. scores well due to its strong financial performance, particularly in revenue growth and balance sheet strength. The technical analysis supports a bullish trend, and the valuation is attractive with a reasonable P/E ratio and high dividend yield. However, declining profit margins and cash flow challenges are areas to watch.

Positive Factors

Revenue Growth

Robust revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and competitiveness.

Balance Sheet Strength

A strong balance sheet with low leverage enhances financial stability and flexibility, allowing for strategic investments and growth initiatives.

Market Expansion

Expanding into Vietnam taps into a growing market, diversifying revenue streams and strengthening the company's presence in Asia.

Negative Factors

Declining Profit Margins

Decreasing profit margins suggest rising costs or pricing pressures, which could impact profitability and long-term financial health.

Cash Flow Challenges

Declining cash flow growth can limit operational flexibility and investment capacity, potentially hindering future growth opportunities.

Reduced Return on Equity

A declining return on equity indicates less efficient use of equity capital, which may affect investor confidence and capital attraction.

HRnetGroup Ltd. Business Overview & Revenue Model

Company Description

HRnetGroup Ltd. (CHZ) is a leading human resource consulting and recruitment firm based in Singapore, specializing in providing comprehensive workforce solutions across various sectors, including technology, finance, healthcare, and more. The company offers a range of services, including talent acquisition, workforce management, and HR consulting, aimed at helping organizations optimize their human capital and enhance operational efficiency.

How the Company Makes Money

HRnetGroup generates revenue primarily through its recruitment services, which include permanent placements, temporary staffing, and contract staffing solutions. The company charges clients a fee based on a percentage of the candidate's first-year salary for permanent placements and a markup on the hourly wage for temporary and contract staff. Additionally, HRnetGroup earns income from its HR consulting services, which involve providing strategic advice and tailored solutions to businesses seeking to improve their HR practices. The firm has established significant relationships with various industries, allowing them to tap into diverse revenue streams. Moreover, HRnetGroup may benefit from partnerships with technology providers that enhance their recruitment processes, further contributing to their earnings.

HRnetGroup Ltd. Financial Statement Overview

Summary

HRnetGroup Ltd. exhibits strong revenue growth and a solid balance sheet with low leverage. However, declining profit margins and cash flow challenges indicate potential areas of concern. The company should focus on improving profitability and cash flow generation to sustain its growth trajectory.

Income Statement

HRnetGroup Ltd. has demonstrated a strong revenue growth rate of 34.7% in the most recent year, indicating robust top-line expansion. However, the gross profit margin has decreased over the years, from 34.4% in 2019 to 21.5% in 2024, suggesting increased cost pressures. The net profit margin has also declined from 12.2% in 2019 to 7.9% in 2024, reflecting reduced profitability. Despite these challenges, the company maintains a solid EBIT margin of 9.9%.

Balance Sheet

The balance sheet of HRnetGroup Ltd. is strong, with a low debt-to-equity ratio of 0.036, indicating minimal leverage and financial risk. The return on equity has decreased from 18.7% in 2022 to 11.8% in 2024, but remains healthy, reflecting efficient use of equity capital. The equity ratio is stable, suggesting a solid capital structure.

Cash Flow

The cash flow statement shows a decline in free cash flow growth, with a negative growth rate of -28.6% in 2024. The operating cash flow to net income ratio is 0.66, indicating moderate cash generation relative to net income. The free cash flow to net income ratio remains high at 0.96, suggesting strong cash conversion efficiency despite recent declines.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	576.63M	567.00M	578.47M	611.77M	590.54M	433.04M
Gross Profit	120.43M	122.21M	138.97M	174.15M	174.90M	129.35M
EBITDA	44.08M	64.43M	86.39M	95.76M	94.37M	69.20M
Net Income	50.85M	44.52M	63.56M	67.53M	65.49M	46.87M
Balance Sheet
Total Assets	498.03M	482.28M	479.94M	483.99M	530.31M	452.38M
Cash, Cash Equivalents and Short-Term Investments	327.84M	327.14M	333.37M	331.15M	350.32M	337.36M
Total Debt	16.65M	13.71M	10.54M	9.86M	12.85M	8.54M
Total Liabilities	91.43M	88.10M	87.00M	105.76M	142.45M	105.23M
Stockholders Equity	393.64M	378.84M	376.61M	361.82M	370.24M	331.67M
Cash Flow
Free Cash Flow	58.72M	49.43M	55.40M	73.70M	51.30M	103.23M
Operating Cash Flow	60.55M	51.60M	57.59M	75.24M	52.68M	104.46M
Investing Cash Flow	-24.92M	-12.76M	-17.66M	-29.53M	-24.57M	334.00K
Financing Cash Flow	-49.66M	-51.47M	-51.38M	-83.23M	-34.85M	-40.90M

HRnetGroup Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:CHZ, the sentiment is Positive. The current price of 0.74 is above the 20-day moving average (MA) of 0.74, above the 50-day MA of 0.74, and above the 200-day MA of 0.70, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.45 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:CHZ.

HRnetGroup Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHZ	79 Outperform	S$730.71M	14.35	13.16%	5.58%	1.23%	-10.36%
S56	72 Outperform	S$618.74M	5.09	16.35%	7.98%	16.82%	62.71%
E3B	66 Neutral	S$739.99M	27.76	4.06%	11.07%	5.49%	-86.00%
S61	66 Neutral	S$1.01B	14.95	9.82%	8.85%	-2.55%	-0.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
F83	53 Neutral	S$528.46M	45.38	1.18%	―	6.34%	160.00%

HRnetGroup Ltd. Corporate Events

HRnetGroup to Dissolve Dormant Subsidiary SPV2 Pte Ltd

HRnetGroup Limited has announced that its dormant subsidiary, SPV2 Pte Ltd, has held a final meeting in respect of its liquidation and is expected to be formally dissolved by the end of February 2026. The company stated that the winding-up of this non-operational entity will not have a material impact on its consolidated net tangible assets or earnings per share for the financial year ending 31 December 2025, signalling that the move is largely an administrative streamlining of its corporate structure rather than a change in operating strategy.

The most recent analyst rating on (SG:CHZ) stock is a Buy with a S$1.00 price target. To see the full list of analyst forecasts on HRnetGroup Ltd. stock, see the SG:CHZ Stock Forecast page.

HRnetGroup’s EASEJobs Enhances Platform with Careers & Skills Passport Integration

HRnetGroup Ltd.’s EASEJobs has partnered with Singapore’s Ministry of Manpower and SkillsFuture Singapore to integrate the Careers & Skills Passport into its platform. This initiative supports Singapore’s national skills-first agenda, enhancing HRnetGroup’s market competitiveness and aligning with the Career Health SG initiative to foster resilient careers and broaden talent pools.

The most recent analyst rating on (SG:CHZ) stock is a Buy with a S$1.00 price target. To see the full list of analyst forecasts on HRnetGroup Ltd. stock, see the SG:CHZ Stock Forecast page.

HRnetGroup Ltd. Secures Gold in Singapore’s Best Managed Companies 2025

HRnetGroup Ltd. has been recognized as a Gold Winner in Singapore’s Best Managed Companies 2025 for the fourth consecutive year. This accolade, part of a global awards program by Deloitte Private, highlights the company’s organizational excellence and business success, reinforcing its strong market position and operational strategies in the competitive Southeast Asian market.

The most recent analyst rating on (SG:CHZ) stock is a Buy with a S$1.00 price target. To see the full list of analyst forecasts on HRnetGroup Ltd. stock, see the SG:CHZ Stock Forecast page.

HRnetGroup’s RecruitFirst Wins Prestigious Employment Practices Award

HRnetGroup Ltd.’s subsidiary, RecruitFirst, has been recognized with the Tripartite Alliance Award 2025 for its commitment to fair and progressive employment practices. This accolade highlights the company’s dedication to non-discriminatory hiring, inclusive culture, and merit-based rewards, enhancing its reputation and industry positioning.

The most recent analyst rating on (SG:CHZ) stock is a Buy with a S$1.00 price target. To see the full list of analyst forecasts on HRnetGroup Ltd. stock, see the SG:CHZ Stock Forecast page.

HRnetGroup Ltd. Appoints New Co-Owners to Lead PeopleSearch Shanghai

HRnetGroup Ltd. has announced the appointment of Tom Tang and Tina Shen as Co-Owners of PeopleSearch (Shanghai) Limited, a unit within its executive search portfolio. This move signifies a strategic shift towards senior executive search in Shanghai, leveraging Tom’s expertise in healthcare and life sciences and Tina’s experience in FMCG and corporate functions, enhancing the company’s market positioning and service offerings.

The most recent analyst rating on (SG:CHZ) stock is a Buy with a S$1.00 price target. To see the full list of analyst forecasts on HRnetGroup Ltd. stock, see the SG:CHZ Stock Forecast page.

HRnetGroup’s Taiwan Units Achieve Grade A Accreditation

HRnetGroup Limited’s recruitment units in Taipei have been awarded Grade A accreditation by Taipei City and Central Government authorities, marking a significant achievement in maintaining high compliance and service standards. This recognition underscores the company’s robust growth in Taiwan, its largest international market, where it has achieved a 17.2% CAGR in revenue over the past four years, driven by a doubling of contractor headcount in flexible staffing.

The most recent analyst rating on (SG:CHZ) stock is a Buy with a S$1.00 price target. To see the full list of analyst forecasts on HRnetGroup Ltd. stock, see the SG:CHZ Stock Forecast page.

HRnetGroup Ltd. Announces Major Holdings in Staffline Group PLC

HRnetGroup Ltd. has announced its major holdings in Staffline Group PLC, representing 20.10% of the voting rights. This investment aligns with HRnetGroup’s strategy to opportunistically enter new markets in the human resources sector, though it does not have a material financial impact on the company.

The most recent analyst rating on (SG:CHZ) stock is a Buy with a S$0.78 price target. To see the full list of analyst forecasts on HRnetGroup Ltd. stock, see the SG:CHZ Stock Forecast page.