Expected to impact listed human resources service companies.

In recent years, more and more human resources companies have completed listings. In 2017, Career International landed on GEM. Last year, Manpower Group Greater China and Renrui Group also landed on the Hong Kong Stock Exchange. The capital market also gained more recognition and recognition of this traditional industry.

Jiachi International is a comprehensive human resources service company. The company was founded in 2005 and started as a headhunting business. At present, the company has nearly 1,000 employees across the country. In 2019, the company acquired Shanghai’s top flexible employment agency. Today, the company further expands new business segments.

At present, Jiachi International’s main business components are headhunting, RPO, flexible employment, salary and benefits, HR SaaS, etc., the flexible employment business accounts for 70% of the company’s total revenue, and headhunting accounts for 21% , The other 9%.

  • Flexible employment: mainly flexible employment in a broad sense, including labor dispatch and outsourcing.

  • Headhunting and online headhunting services: Headhunting consultants cover all mainstream industries. Self-developed online headhunting services are similar to the mode of hunting and recruiting. The benchmark customers for headhunting include Ping An, Ali, Country Garden, VIPKID, etc.

  • RPO: Recruitment process outsourcing, hosting the establishment of corporate team through the recruitment butler service model.

  • HR SaaS: While supporting internal business scenarios such as flexible employment, it also opens up with Ping An Group’s human resources system. The main functions are resume library, intelligent matching search, etc.

  • Other businesses: payroll on behalf of employees, salary and welfare products, Jiashenle, management consulting business, Jiachi Consulting, etc.

    Ma Shifa, chairman of Jiachi International, told us that human resources is an industry that focuses on offline delivery, and online recruitment is only a small part of it. The reason why there are no Internet giants to do this in depth is because pure online traffic cannot improve offline delivery. Finding people and transporting them to companies is something traditional human resource companies excel at.

    On the other hand, the capital market is positive about the traditional human resources companies’ online development. Therefore, companies like Jiachi International have been developing offline for more than ten years, and their management and business delivery capabilities are relatively mature. Once you choose to embrace the Internet and technology and achieve the perfect integration of online and offline, the business and company value is expected to increase geometrically.

    The future development direction of Jiachi International is to integrate technologyClosely integrated with human resources services. The company is also building its own online recruitment platform, in addition to its own use, it will also be open to partners. Jiachi’s online recruitment platform will not be a large and comprehensive platform like Carefree or Zhilian Recruitment, but will focus on certain vertical segments. At the same time, relying on the company’s strong service delivery capabilities in the past, the matching efficiency between the client and the delivery end was improved.

    HR SaaS can also greatly improve the efficiency of traditional human resources companies, but to achieve accurate matching of a SaaS system requires a large amount of data precipitation and business scenario training. Ma Shifa believes that because the SaaS of Jiachi International originates from specific business scenarios, after years of accumulation and iteration, it finally achieves efficient matching. For example, in the resume database, a person’s past job history can infer the direction of his next job change. Or, the resume of a talented candidate model can be quickly matched through a machine learning and talent portrait model of a certain functional candidate, ultimately improving the success rate of human resources services.

    Many human resources companies have proposed to compare future business development with e-commerce business, such as Alibaba’s platform model benchmarking online recruitment, vertical e-commerce versus vertical field recruitment, etc. And the job fair is the same as e-commerce, not only improving matching and matching online, but also providing technical support and offline delivery in the business process. Ma Shifa believes that Jiachi International focuses on building an S2B model. In addition to its own service products, it will be an open platform for HR SaaS and offline talent cooperation.

    In the secondary market and domestic A-shares, Jiachi International can partially benchmark Cree International, a GEM listed company. Career’s development path is also from headhunting to comprehensive human resources services focusing on flexible employment. For the full year of 2019, Career International’s total revenue was 3.59 billion yuan, net profit was about 170 million yuan, and the average PE was 45 times. Jia Chi International estimates that the company’s annual revenue in 2020 is estimated to be around 1.6 billion.

    In terms of financing, in 2019, we won a large A + round of financing from CICC Capital. At present, the company is in the B round of financing, and the conservatively estimated financing amount is 100 million yuan, which is mainly used for business development, IT and R & D investment, and upstream and downstream mergers and acquisitions in the industry.