HRnetGroup (CHZ) H1 2025 earnings summary

Executive summary

• 1H 2025 revenue rose 3.4% YoY to S$295.545m; NPAT increased 27.4% to S$29.034m and PATMI rose 29.2% to S$28.015m, while gross profit fell 2.8% to S$61.219m.

• Cash, CLN and T-bills totaled S$311.7m with zero borrowings; a 2.0-cent-per-share interim dividend was declared, representing 67% of 1H 2025 NPAT and payable 2 September 2025.

Financial highlights

• Direct costs rose 5.1% to S$234.3m; PBT increased 22.1% to S$34.156m and basic and diluted EPS were 2.86 cents, versus 2.21 cents in 1H 2024.

• Other income increased to S$15.779m from S$6.5m, including higher government grants and unrealised revaluation gains; prior-year accrual reversals and interest income partly offset the increase.

• Group gross margin declined to 20.7% from 22.0%; NPAT-to-GP conversion improved to 47.4% from 36.2%.

Segment performance

• Flexible Staffing revenue rose 4.1% to S$265.8m, or 89.9% of revenue; contractor volume increased 3.7% to 16,140, while GP fell 2.8% to S$31.8m.

• FS GP per contractor declined 6.3%; GP margin eased to 12.0% from 12.8%, partly due to lower-margin international markets and weaker Singapore volumes.

• Professional Recruitment revenue fell 3.3% to S$27.7m; placements declined 3.0% to 2,249 and GP fell 3.5% to S$27.6m, with GP per placement down 0.5% to S$12.3k.

• Senior executive search volume rose 6.1% and average billing per placement increased 12.2%, lifting segment GP 19.0% and partly offsetting weaker mid- and junior-level results.

• Singapore revenue fell 1.2% and GP contracted 8.2%; Taipei revenue and GP grew 16.9% and 14.0%, while Mainland China revenue rose 12.4% on FS volume gains.