HRnetGroup Ltd. (CHZ) AI Stock Analysis

• Market Cap: S$730.71M
• Dividend Yield: 5.54%
• Average Volume (3M): 599.16K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.37
• 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: S$0.78
• Price Target Upside: 5.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• 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.

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: Positive
• 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 0.73, above the 50-day MA of 0.72, and above the 200-day MA of 0.68, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 60.15 is Neutral, neither overbought nor oversold. The STOCH value of 35.71 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%	5.54%	1.23%	-10.36%
S56	72 Outperform	S$508.45M	4.18	16.35%	1.59%	16.82%	62.71%
E3B	66 Neutral	S$666.45M	25.00	4.06%	11.61%	5.49%	-86.00%
S61	66 Neutral	S$1.01B	14.91	9.82%	8.63%	-2.55%	-0.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
F83	53 Neutral	S$546.38M	46.92	1.18%	―	6.34%	160.00%

HRnetGroup Ltd. Corporate Events

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.

HRnetGroup Ltd. Enhances Liquidity with Treasury Shares Sale

HRnetGroup Ltd. announced the sale of 60,000 treasury shares on October 2, 2025, aiming to enhance trading liquidity and free float. The transaction slightly adjusted the number of treasury shares held, maintaining the percentage of treasury shares against the total number of shares outstanding, indicating a strategic move to optimize share liquidity without significantly altering shareholder structure.

HRnetGroup Limited Enhances Liquidity with Treasury Shares Sale

HRnetGroup Limited, a company incorporated in Singapore, has announced the sale of 156,600 treasury shares to enhance trading liquidity and free float. This transaction slightly reduced the percentage of treasury shares from 3.30% to 3.28% of the total shares outstanding, with a total value of S$112,027.13. The sale is part of the company’s efforts to improve market dynamics and shareholder value.

HRnetGroup Expands into Vietnam with New Subsidiary

HRnetGroup Ltd. has announced the establishment of its first wholly owned subsidiary in Vietnam, AllwaysFirst Vietnam Co., Ltd., marking its 18th city of operation. This strategic move into Ho Chi Minh City aims to tap into Vietnam’s rapidly growing economy and burgeoning IT sector, although immediate financial contributions may not be significant. The expansion reflects HRnetGroup’s long-term strategy to deepen its market presence and leverage Vietnam’s strong growth prospects, particularly in IT and tech recruitment.

HRnetOne Shanghai Secures 2024 Shanghai Talent Scout Award

HRnetGroup Ltd.’s subsidiary, HRnetOne Shanghai, has been awarded the 2024 Shanghai Talent Scout Award by the Shanghai Municipal Human Resources and Social Security Bureau. This accolade, which HRnetOne has received for the third consecutive year, underscores the company’s proficiency in sourcing top-tier talent with core competencies in intellectual property and global expertise. The recognition highlights HRnetGroup’s sustained leadership in the human resources sector and its commitment to supporting Shanghai’s enterprises in competing on the global stage.

HRnetGroup Ltd. Announces Subsidiary Changes and Ownership Adjustments

HRnetGroup Ltd. announced several changes in its subsidiary interests during the first half of 2025. The company incorporated a new subsidiary, AllwaysFirst Vietnam Co. Ltd., with a 100% interest and made adjustments in share capital and ownership stakes in other subsidiaries, including acquisitions and disposals, resulting in a net cash consideration of S$0.87 million.

HRnetGroup Ltd. Reduces Investment in Quoted Securities

HRnetGroup Ltd. has announced the disposal of quoted securities, reducing its aggregate investment cost in these securities to below 25% of its latest audited consolidated net tangible assets. This strategic move reflects a decrease in the total market value of its quoted investments, which may impact the company’s financial positioning and investment strategy.

HRnetGroup Ltd. Transfers Treasury Shares to Directors

HRnetGroup Ltd. has announced the transfer of 137,429 ordinary shares held in treasury to certain directors as part of their remuneration package, effectively reducing the number of treasury shares from 32,424,520 to 32,287,091. This move, valued at S$87,500, slightly decreases the percentage of treasury shares against the total outstanding shares, reflecting the company’s strategy to align director compensation with shareholder interests.