[Click eStock] "SaraminHR, Continued High Growth Due to Job Market Recovery"

[Asia Economy Reporter Song Hwajeong] On the 25th, Samsung Securities maintained a 'Buy' investment rating and a target price of 66,000 KRW for SaraminHR, expecting continued high growth due to the recovery of the hiring market.

SaraminHR's sales have continued to grow at a higher rate compared to previous years as the hiring market recovery persists. Samsung Securities analyst Oh Donghwan stated, "In the third quarter, matching platform sales recorded 24.1 billion KRW, a 32.8% increase compared to the same period last year, surpassing the average annual sales growth rate of 13.3% from 2015 to 2020." He added, "Especially, the sustained effect of the hiring market recovery led the employment portal to grow by 61%, driving overall growth." Hiring agency sales decreased by 37%, which was due to a high base effect caused by the deferral of second-quarter hiring agency sales to the third quarter last year. Cumulative hiring agency sales up to the third quarter increased by about 10%, maintaining steady growth. Operating profit in the third quarter also rose by 65.4% to 10.9 billion KRW, benefiting from operating leverage due to high sales growth.

Despite increased costs, profit growth is expected to continue. Analyst Oh said, "As the COVID-19 recovery effect diminishes, the employment portal sales growth rate in the fourth quarter will slightly decrease to the 40% range, but hiring agency sales will recover to the second-quarter level due to the year-end peak season effect, resulting in overall sales growth exceeding the third quarter level." He added, "Considering the gradual economic recovery in 2022, sales growth above previous years is expected." Furthermore, he noted, "Although operating expenses are expected to increase overall next year due to rising labor costs and expanded marketing, operating profit growth in the 20% range is achievable thanks to sales growth."

They have also secured new growth drivers with hiring-confirmed products. To respond to the rapidly growing online talent recommendation market, SaraminHR launched the hiring-confirmed product 'Hapgyeokㅋㅋ' and the IT talent-exclusive platform 'Jumpit' this year. Analyst Oh explained, "While existing job postings are charged based on exposure position and usage period, the new platforms recommend candidates matching the company's desired conditions through resume analysis and charge a certain commission on the annual salary upon hiring." He added, "Considering the rapid growth of the related market and the vast resume database secured through the hiring portal, these will emerge as new revenue sources."