Broker: Maybank Research Pte Ltd
Date of Report: April 19, 2026
Ticker: HRNET SP
Excerpt from Maybank Research Pte Ltd report.
Report Summary
- Action: BUY
- Target Price (12-month): SGD 0.87 (20% upside from current price SGD 0.76)
- Key Idea: HRnetGroup Ltd is one of Singapore’s largest Asia-based recruitment agencies, operating across 18 Asian cities with over 1,056 employees. The company is supported by a unique co-ownership model, which drives strong alignment, collaboration, and resilience.
- Financial Strength: HRnet has a robust balance sheet with SGD336m in net cash (about 45% of market cap), allowing it to sustain a steady dividend yield (~6%) and high payout ratios (70–80%), while remaining profitable in 31 out of 33 years. Asset-light operations support strong free cash flow and low capex.
- Business Model: Dual-engine revenue streams—Flexible Staffing (defensive, 90% of revenue) ensures steady cash flows, while Professional Recruitment (high margin, cyclical) captures upside in recoveries. Regional diversification and multi-brand strategy provide resilience and growth opportunities.
- Valuation: The stock trades at less than 9x FY26E P/E (ex-cash), a discount to global peers. Balance sheet strength allows for M&A and further capital returns, enhancing upside potential.
- Risks: Key risks include economic cycles affecting hiring, intensifying competition, potential disruption from AI and recruitment tech, reliance on key talent, and execution risks in M&A.
above is an excerpt from a report by Maybank Research Pte Ltd. Clients of Maybank Research Pte Ltd can be the first to access the full report from the Maybank Research Pte Ltd website : www.maybank-keresearch.com
