As the digital economy reconstructs the global business landscape with overwhelming force, the human resources service industry is undergoing a paradigm shift from &#34;demographic dividend&#34; to &#34;talent dividend.&#34;
RENRUI HR (06919) delivered a striking report in the mid-2025: revenue of 2.605 billion yuan, a year-on-year increase of 26.6%; profit attributable to shareholders of 41.07 million yuan, a year-on-year surge of 87.9%; net operating cash flow of 243 million yuan, a year-on-year increase of 42.7%; the company announced an interim dividend of HKD 0.09 per share, with a payout ratio of 31.4% of the net profit attributable to shareholders for the first half of the year.
The most eye-catching highlight of the financial report is that the gross profit contribution from digital technology and cloud services has reached 43.1%, surpassing the traditional advantage of general service outsourcing for the first time, becoming the largest source of gross profit contribution for the group.
This means that after four years of cultivation, digital technology and cloud services have remarkably become the second growth curve for profit enhancement. Behind this is RENRUI HR's transformation: no longer limited to traditional human resources services, but deeply involved in the core area of digital transformation, providing clients with high-value-added technical talent solutions.
However, another strategic direction revealed in the financial report may redefine RENRUI HR's valuation ceiling.
In the 63-page mid-2025 financial report of RENRUI HR, after the summary of the interim results, the introduction of business segments and development strategies emphasizes its globalization efforts, with multiple mentions of the company's globalization throughout this report—this is also the first time in previous financial reports.
&#34;Seeking new markets overseas is a strategy for the country and an opportunity for us,&#34; said Zhang Jianguo, Chairman and CEO of RENRUI HR. Going overseas is becoming the third growth curve that RENRUI HR is building.
RENRUI HR began exploring overseas markets in 2019, but progress was slow due to the pandemic, and it started to reorganize its layout in 2024.
In just over a year, RENRUI HR's overseas layout has achieved astonishing results. As of June 30, 2025, it has successfully established subsidiaries in 21 countries and regions worldwide, with its business footprint spanning Europe, America, and Asia.
From the bustling Hong Kong to the vibrant Malaysia, Vietnam, Thailand, and Indonesia, and even to the UAE in the Middle East, RENRUI HR has set up offices and quickly formed localized recruitment and service teams through the deployment of &#34;country managers.&#34; These teams act like &#34;capillaries&#34; rooted in the local area, deeply understanding local market demands and providing precise and efficient human resources services to clients.
At the same time, RENRUI HR has established its first overseas digital operation and customer service center in Uzbekistan. This move not only represents a deep exploration of the local market but also lays a solid foundation for the subsequent construction of a global service network.
As of June 30, 2025, the internal staff of the international business team has reached 57, and the total number of flexible workers in international business reached approximately 1,460 as of August 28, with about 858 employees managed in collaboration with global human resources partners.
These figures not only serve as strong evidence of the company's overseas business development but also indicate that RENRUI HR's influence in the global human resources service field is increasing day by day
More importantly, RENRUI HR's overseas layout is not a simple &#34;land grab,&#34; but rather has a clear strategic plan and execution path. In the second half of 2025, the company will focus on Hong Kong, Southeast Asia, the Middle East, and Central Asia, fully enhancing subsidiary revenue and the number of flexible workers.
In addition, the company is also preparing for the expansion of its business in Japan, Europe, and the Americas in 2026, conducting market research, potential client development, and bidding preparations, and plans to initiate the site selection for its second and third global digital operation and customer service centers.
He Jing, General Manager of the International Business Department of RENRUI HR, shared the challenges and response strategies of Chinese enterprises going overseas to Southeast Asia at the Go-Global2025 forum, further highlighting the company's professionalism and deep insights in the field of overseas business. By building a global recruitment center, overseas proprietary entities, and a Southeast Asia GSP service system, RENRUI HR provides precise solutions for Chinese enterprises going overseas from the 0 to 1 and then to the 1+ stages. This &#34;trinity&#34; service model combines the resource integration capabilities of the Chinese team with the market insight advantages of local teams, becoming a core tool for RENRUI HR in competing in overseas markets.
In 2024, RENRUI HR's overseas business revenue is expected to be 20 million yuan. If it can replicate the growth curve of its digital technology and cloud services business, it may become a new growth engine for RENRUI HR within 3-5 years.
Globalization is not a multiple-choice question but a must-answer question. RENRUI HR is leveraging the trend of Chinese enterprises going overseas to write its own answer in the global human resources market.
According to Zhang Jianguo, RENRUI HR has spent about three years creating a second growth curve, and the speed of internationalization will not be lower than that of the digital talent business. &#34;We have over a thousand service clients domestically, and their overseas needs are diverse.&#34; The gross profit margin for overseas services is usually higher than that for domestic services, and the international business's proportion in the company's overall revenue will be intuitively reflected in the next three years.
From a valuation perspective, the gross profit margin for overseas employment is inherently higher than that for domestic employment: exchange rate differences, visa premiums, and project-based fees allow for gross margins of over 20% overseas. As overseas business gradually matures, its high gross margin characteristics are expected to enhance the overall gross margin level of the company, thereby improving the company's profitability indicators and earning RENRUI HR a higher valuation in the capital market.
In comparison with competitors, Kelly Services (300662.SZ) focuses on mid-to-high-end talent search, currently with a price-to-book ratio of 3.07 times; Foreign Service Holdings (600662.SH) focuses on traditional labor dispatch, with a price-to-book ratio of 2.56 times. However, RENRUI HR is only at 0.56 times, indicating significant room for valuation correction.
More importantly, RENRUI HR has basically completed the critical transition from &#34;traditional flexible employment&#34; to &#34;digital talent ecosystem.&#34; Its technological barriers, ecological layout, and client structure are superior to similar companies in the A-share and Hong Kong stock markets, yet the market continues to price RENRUI HR using the &#34;traditional labor intermediary&#34; model, ignoring its SaaS recruitment platform, data assets, and overseas leverage.
Based on the growth rate in the first half of the year, once the annual profit exceeds 100 million yuan, a valuation correction to 15 times PE would correspond to a market value of 1.5 billion Hong Kong dollars, implying a 90% upside potential at the current price; if the overseas curve is successful, a 25 times PE is not the ceiling

06919

RENRUI HR's mid-2025 financial report shows revenue of 2.605 billion yuan, a year-on-year increase of 26.6%; profit attributable to shareholders surged 87.9% to 41.07 million yuan. The gross profit contribution from the company's digital technology and cloud services has surpassed that of traditional service outsourcing for the first time, becoming the main source of profit. RENRUI HR is expanding into 21 countries globally, and Chairman Zhang Jianguo stated that the overseas market represents a new strategic opportunity, marking a successful step towards the company's digital transformation

RENRUI HR, with a PB of 0.56 times, is being revalued by orders from 21 countries