Excerpts from Maybank report

HRnetGroup Ltd (SGX: CHZ)

Proxy to tight labour market in Singapore HRnetGroup is a beneficiary of the current tight labour market as Singapore eases its border restrictions and reopens the economy. In particular, we expect the professional recruitment (PR) segment to drive core EPS growth in FY22 along with rising wages and placement volumes. The flexible staffing (FS) business should continue to do reasonably well. Backed by its strong balance sheet, the Group just announced it will establish a SGD30m share buyback programme. Maintain BUY and TP of SGD1.07, still based on 16x FY22E P/E.

HRnetGroup professional recruitment to drive growth

A 5-14% pay rise for civil servants scheduled for Aug 2022 could have a knock-on effect on private-sector salaries. According to channel checks, there is a widespread talent shortage, especially in IT and life sciences (which accounts for 15% and 26% of FY21...