HRnetGroup's first-half earnings soar 71.2% to record high

RECRUITMENT firm HRnetGroup's CHZ net profit climbed 71.2 per cent to a fresh high of S$35.9 million for the six months ended June 30, from about S$21 million in the year-ago period.

Revenue for the first half rose 30.8 per cent to S$275.1 million, also a record high for the company, from S$210.3 million in the corresponding period last year.

Both the flexible staffing and professional recruitment segments posted a strong performance across HRnetGroup's three key markets of Singapore, North Asia and rest of Asia.

In the flexible staffing business, the number of contractors surged 47.1 per cent year on year to an all-time high of 17,123 in June 2021, driving a 31.9 per cent boost in the segment's revenue to S$229.6 million.

As for the professional recruitment arm, revenue was up by 25.1 per cent to S$44 million as HRnetGroup placed 3,760 talents, with an increase of 215 in permanent jobs.

The pent-up demand from last year's hiring standstill "unleashed job openings and employment churn this year", as Asian economies started recovering from the Covid-19 pandemic's impact amid their vaccination programmes, the company said.

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HRnetGroup also placed more candidates in senior and niche positions that commanded higher remuneration packages, which helped gross profit per placement increase by 17.4 per cent.

Earnings per share amounted to 3.58 Singapore cents for H1 2021, up from 2.09 cents in H1 2020.

The company expects strong local employment within geographies to continue due to border restrictions.

"Current talent needs gravitate towards a limited pool that is in high demand, not just for specific skill sets in areas such as digitalisation, but also for the candidates' attributes of adaptability, tenacity and getting things done within a highly fluid business environment," it said in the results filing.

No dividend was recommended for H1 2021, the same as in H1 2020.

Shares of mainboard-listed HRnetGroup fell 1.8 per cent or 1.5 Singapore cents to finish Friday at 80 cents, before the results were released.

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