HRnetGroup

[dreamybear]

HRnet group was heavily oversubscribed during its IPO slightly more than 2 years ago. (Refer to Post#4 of this thread for details). However, the stock price has since been beaten down from the IPO price. Based on the "2 years track record", current price, P/E valuations, 4+% dividend yield, continued cash rich status, etc, I wld not be surprised if this is in the watchlist of many buddies even though the thread is very quiet.

Other than concerns on the slowing economy(both local & global), I am a bit perturbed by the Staffline investment. While I do think HRnet should diversify its earnings base away from SG, Staffline does seem to me an overvalued company(despite Staffline's share price having crashed some 85% since end of last year). Besides having 116 million pounds of goodwill in its balance sheet, I do not find it having a strong balance sheet. 

Any comments, fellow buddies ?

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Financial Results 1H2019

Highlights :
1. For 1H2019, 1.2% decline in revenue to $212 million, compared to $214 million in 1H2018.
2. For 1H2019, 5.5% growth in net profit to $32 million, compared to $31 million in 1H2018.

3. For 1H2019, EPS is 3.06 cents, compared to 2.9 cents in 1H2018.
4. NAV 33 cents at 30 Jun 2019.

5. Performance Review :
- The Group continues to deliver quarterly revenue in excess of the S$100m mark for the 7th consecutive quarter.  
- Professional Recruitment revenue / profit declined due to SG GDP decline to lowest in decade.
- Flexible Staffing : SG down, HK/TW up

6. Section 10 (pg18) "According to its audited financial statements for the year ended 31 December 2018, Staffline reported that its continuing operations generated underlying revenue of GBP 1,127.5m, gross profit of GBP 121.9m and net profit of GBP 28.8m.  We see this strategic investment as an important step in further strengthening the Group’s network and to tap into opportunities in the UK market which currently has its risks associated with Brexit but at the same time presents good value for us to enter."

HRNetgroup
Results
Financials : http://hrnetgroup.listedcompany.com/news...YVSC.1.pdf  
Presentation : http://hrnetgroup.listedcompany.com/news...YVSC.2.pdf
Press Release : http://hrnetgroup.listedcompany.com/news...YVSC.3.pdf

Additional Acquisition of Staffline at 180 pence
https://links.sgx.com/FileOpen/SGX%20ann...eID=572773

The Hot Seat (Money FM 89.3) 
https://omny.fm/shows/money-fm-893/the-h...ecutive-di

Staffline
News of Concerns
https://www.accountancydaily.co/pwc-quit...line-group
https://www.theguardian.com/business/201...nd-payroll
http://www.stockmarketwire.com/article/6...-rise.html
https://www.sharesmagazine.co.uk/news/sh...it-warning

AR
https://www.stafflinegroupplc.co.uk/medi...-final.pdf