Broker Name: CGS International
Date of Report: February 26, 2026
Excerpt from CGS International report.
Report Summary
- HRnetGroup Limited reported FY25 PATMI of S\$51.2m (+14% yoy), supported by non-core and one-off gains, with operating profit remaining stable at S\$41m.
- The company increased its FY25 final dividend by 0.2 Scts to 2.2 Scts (+10% yoy), reflecting a higher payout to shareholders.
- International expansion, especially in senior executive search and flexible staffing across Taiwan, Indonesia, and Malaysia, is a key growth focus for FY26F.
- Despite a cautious hiring market in Singapore, HRNET maintains a strong balance sheet, with improving dividend yields and a Hold rating with a raised target price of S\$0.78.
- Gross profit margin declined slightly due to pricing competition, but management expects margin recovery as new operations scale up.
- HRNET’s unique co-ownership scheme for subsidiary leaders aligns employee and company interests, driving productivity and sustainable earnings.
- The company demonstrates strong ESG compliance, zero regulatory incidents from FY18 to FY24, and ongoing alignment with global sustainability frameworks.
- Key risks include macroeconomic headwinds and heightened competition, while upside could come from a rebound in hiring or strategic M&A.
Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website : https://www.cgsi.com.sg
