JOBS
51job Inc.
TMT
04/10/2014
Presented
| Date | 04/08/2014 |
| Price | $34.02 |
| Market Cap | $2.01B |
| Ent Value | $1.49B |
| P/E Ratio | 30.08x |
| Book Value | $4.73 |
| Div Yield | N/A |
| Shares O/S | 59.18M |
| Ave Daily Vol | 100,000 |
| Short Int | 0.61% |
Current
| Price | $60.90 |
| Market Cap | $4.11B |
| 51job, Inc., through its subsidiaries, provides integrated human resource services in the People's Republic of China. The company provides recruitment advertising services, including online recruitment services through its Website, 51job.com; and print advertising services through 51job Weekly, a city-specific recruitment advertising publication. It also offers other human resource related services, such as business process outsourcing, which consist of social insurance and benefits processing, regulatory compliance with local governmental employment regulations, and payroll processing; and conducts training seminars in business management, leadership, sales and marketing, human resource, negotiation skills, financial planning and analysis, public administration, manufacturing, secretarial, and other skills. In addition, the company provides campus recruitment services to corporations that seek to recruit college and university students; and eSearch executive search and placement services to employers, which seek to fill mid-level professional, managerial, and junior executive positions. Further, it conducts general and customized surveys on salary, employee retention, and other human resource related topics; organizes and hosts annual human resource conferences and events; provides assessment tools that assist human resource departments in evaluating capabilities and dispositions of job candidates and existing employees, in aiding employee placement and resources allocation; and offers hiring and support services to employers on select recruitment projects. 51job, Inc. serves multinational corporations, large national Chinese corporations, and local Chinese enterprises. It provides its services through sales offices, and a national sales and customer service call center in Wuhan. 51job, Inc. was founded in 1998 and is headquartered in Shanghai, the People’s Republic of China. |
Please note, this stock split on 4/8/2014 at a ratio of 2/1. The presented data has been updated to account for the change, however, the text of the note may refer to data based on the original presented price of $68.04.
Highlights
The presenter thinks a short position in 51job (JOBS) may be timely given the stock’s material outperformance relative to other Chinese/ Asian internet/ TMT companies since 2010. JOBS has underperformed by a fair margin over the past year, but is still up slightly in absolute terms. The online recruitment site – for primarily white collar professionals – is “definitely not a bad business,” but with LinkedIn entering the Chinese market he sees the potential for pressure on shares due to increasing competition.
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