【行业研究报告】北京人力-拟置入人服优质资产北京外企，行业龙头有望迎来发展新机遇

Keywords:#M&A
InvestmentThesis
◼China'sleadingHRservicecompanyplanstoinjectitsassetstoBeijingUrban-Rural
◼China'sleadingHRservicecompanyplanstoinjectitsassetstoBeijingUrban-Rural
Commercial(BURC)ListingPlatform.BURCannouncedinJuly2022thatitintendsto
replaceitscurrentbusinessbyacquiringBeijingForeignEnterpriseHumanResources
ServiceCo.,Ltd.(FESCO).BURCwasestablishedin1992,anditsmainbusinessincludes
commercial,tourismservices,culturalandcreativeindustries,andpropertymanagement.
FESCOisthefirstcompanyinChinatoengageinhumanresourceservices,withmore
than40yearsofexperienceintheindustry.Thenumberofitsclientcompanieshas
exceeded10,000,coveringnumerousfieldsincludingtheInternet,finance,andmedicine.
In2021,FESCOachievedrevenue/netprofitofRMB25.4/0.615bn,+40.45%/+7%YoY.
◼Weseebroadprospectsforbusinessoutsourcing,withacceleratingprosperityinpost-
epidemicrecovery.ComparedwithmaturedevelopedcountriessuchasEuropeandthe
UnitedStates,China'shumanresourceserviceindustrystillhasconsiderabledevelopment
space,especiallyinthebroadfieldofbusinessoutsourcing.Accordingtodatafromthe
MinistryofHumanResourcesandSocialSecurity,thescaleofthehumanresourceservice
industryin2021reachedRMB2.5tn,+23%YoY.However,accordingtoCICdata,the
penetrationrateofflexibleemploymentinChina'shumanresourceservicesislessthan
1%,whichisstillfarbehinddevelopedcountrieslikeEuropeandtheUnitedStates.
Outsourcingnon-corebusinessisastrategicchoicethatcompanieswillinevitablychoose
inthegrowthcycle.WiththedevelopmentofChina'smarketeconomy,thedemandfor
businessoutsourcingcanalsobeverystrong.Inthepost-epidemicrecovery,companies
arelikelytoreturntotheexpansioncycle,acceleratingtheprosperityoftheindustry.
◼Industryleaderwithobviousscaleandcustomeradvantages:FESCOisthelargest
humanresourceservicecompanyinChina,withmeaningfulfirst-moveradvantages,a
matureproductservicematrix,andanefficientandorderlyworkingmechanism.Ithas
establishedaservicenetworkinmorethan400citiesacrossthecountry,withawiderange
ofcustomersandrichcustomerresourcesundertheendorsementofstate-owned
enterprises.Itstopfivecustomersareleadingenterprisesintheinformationtechnology,
Internet,logistics,andretailindustries,anditslargestcustomerHuaweiaccountedfor
20.2%ofitsrevenuein2021.Withthehighprosperityofdownstreamindustriesanda
largedemandforlabor,weexpectthecompanytofullyleverageitsindustryleadership
roleandenjoythebenefitofindustrygrowthafterlisting.
◼EarningsForecast&Rating:Weexpectthatifthedealiscompletedin2023,BURC's
netprofitin2023-2024islikelytoreachRmb0.81/0.94bn,respectively.Thecurrentmarket
valueofBURCisRmb8bn,andweinitiatewithBuyrating.
◼Risks:FailureofM&A,macroeconomicfluctuations,economicdownturns,intensified
competitioninthehumanresourcesindustry.
PricePerformance
MarketData