51job (JOBS)

51job, Inc. (51job), incorporated in 2000, is the leading provider of integrated human resource services in China with a focus on recruitment related services. The company's recruitment related services are delivered in both print and online formats. These two services are integrated to allow it to reach a wide and diverse audience. The Internet, web-based applications, and human resource software are critical aspects of the company's services. In addition to recruitment advertising services, the company also provides executive search and other complementary human resource related services, including training, proprietary software applications, business process outsourcing and salary surveys, for large and small employers. Its nationwide office network spans 26 cities in China. Offering a broad array of products and services, 51job connects millions of job seekers with employment opportunities and streamlines the recruitment process and human resource administration for tens of thousands of companies in China. In 2007, the company generated 51.0% of its revenues from its print advertising business, 33.5% of its revenues from its online recruitment services business, and 1.9% of its revenues from its executive search business. Other human resource related services represented 13.6%.

51job's financial results for the second quarter showed a lower net profit margin due to higher sales & marketing expenses and a higher tax rate. Both its revenue and EPS missed the market consensus. Although 51job continues to have the highest brand recognition in the online and offline recruiting markets in China, the leading position hasn't gained any competitive advantage for 51job to improve its profit margin. Therefore, we are downgrading the stock from Buy to Hold.

Read full report on 51Job Inc - ADR

Company overview provided by

Company Products/Services/Markets:

Enter Company Products/Services Here

Strategy:

Describe Key Aspects of Company's Strategy Here

Competitors:

Enter Competitors Here

Industry Trends and News:

Enter Industry Trends and News Here

Acquisitions, Divestitures, Major Transactions, Spin-offs :

Enter Acquisitions, Divestiures, Major Transactions, Spin-offs Here

Management – Pros & Cons, Changes:

Enter Management - Pros & Cons, Changes Here

Buy Rationale:

Enter Buy Rationale Here

Sell Rationale:

Enter Sell Rationale Here