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Tech in Asia

Research from Tech in Asia

Tech in Asia (YC W15) is the largest English-language technology media company that focuses on Asia. From the latest news to the hottest trends and the boldest startups to the strongest titans, we cover everything tech in the region. Our goal is to build and serve Asia’s tech and startup community.

News from Tech in Asia

Private Capital Markets

<ul><li>Singapore-based Workmate, an on-demand frontline staffing platform, has been acquired by Japanese-based HR conglomerate Persol Asia Pacific for an eight-figure US dollar sum.</li><li>Workmate founder and CEO Matthew Ward told Tech in Asia that his startup chose to combine with Persol due to its reach, infrastructure, and knowledge spanning Asia.</li><li>These resources fit into Ward’s plans for accelerated growth in new markets across the continent.</li></ul>

Singapore-based Workmate, an on-demand frontline staffing platform, has been acquired by Japanese-based HR conglomerate Persol Asia Pacific for an eight-figure US dollar sum.Workmate founder and CEO Matthew Ward told Tech in Asia that his startup chose to combine with Persol due to its reach, infrastructure, and knowledge spanning Asia.These resources fit into Ward’s plans for accelerated growth in new markets across the continent.

Japanese HR Firm Persol Buys Singapore Staffing Platform Workmate

Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/recruit-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:15070:1" rel="noopener">Recruit Holdings (6098 JP)</a>  reported 1QFY03/2023 results on Friday. Revenue grew 26.8% YoY to JPY843.2bn (vs consensus JPY784bn) while OP increased 14.0% YoY to JPY119.3bn (vs consensus JPY106.1bn).</li>
<li>HR Tech segment’s earnings growth has started decelerating with recruitment markets normalising while matching &amp; solutions’ earnings have not yet recovered to pre-pandemic levels.</li>
<li>We think there is further downside as global recruitment markets face more challenges with slowdown in economic growth and uncertain outlook.</li>
</ul>



Recruit Holdings (6098 JP)  reported 1QFY03/2023 results on Friday. Revenue grew 26.8% YoY to JPY843.2bn (vs consensus JPY784bn) while OP increased 14.0% YoY to JPY119.3bn (vs consensus JPY106.1bn).
HR Tech segment’s earnings growth has started decelerating with recruitment markets normalising while matching &amp; solutions’ earnings have not yet recovered to pre-pandemic levels.
We think there is further downside as global recruitment markets face more challenges with slowdown in economic growth and uncertain outlook.


Conviction Call Recruit: More Downside Ahead

<ul>
<li>The global HRTech market is forecast to grow at a CAGR of 5.8% between 2022-2028E to US$35.68bn driven by increased investment in product and technology development.</li>
<li>We have chosen four companies that will have an exciting year ahead (either bullish or bearish) and have discussed their business models, key drivers, fundamentals and their valuation.</li>
<li>We have chosen two stocks from the US (Ceridian and Automatic Data Processing) and two from Japan (Recruit and Visional) with a market capitalisation of &gt;$1bn and ADTV&gt;$1m.</li>
</ul>


The global HRTech market is forecast to grow at a CAGR of 5.8% between 2022-2028E to US$35.68bn driven by increased investment in product and technology development.
We have chosen four companies that will have an exciting year ahead (either bullish or bearish) and have discussed their business models, key drivers, fundamentals and their valuation.
We have chosen two stocks from the US (Ceridian and Automatic Data Processing) and two from Japan (Recruit and Visional) with a market capitalisation of &gt;$1bn and ADTV&gt;$1m.


HRTech Sector Series: Changing HR Landscape Post-Covid Create Opportunities

<ul>
<li>
<a href="https://www.smartkarma.com/entities/recruit-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:15070:1" rel="noopener">Recruit Holdings (6098 JP)</a> shares have declined 44.35% YTD as the company’s earnings have started normalising following easing off of Covid-19 conditions.</li>
<li>4QFY03/2022 results showed that the strong growth in earnings that the company experienced in FY03/2022 has started to weaken with normalisation of recruitment and staffing markets.</li>
<li>With weakening earnings, we think there is further downside and Recruit will be a good short over the next few weeks.</li>
</ul>



Recruit Holdings (6098 JP) shares have declined 44.35% YTD as the company’s earnings have started normalising following easing off of Covid-19 conditions.
4QFY03/2022 results showed that the strong growth in earnings that the company experienced in FY03/2022 has started to weaken with normalisation of recruitment and staffing markets.
With weakening earnings, we think there is further downside and Recruit will be a good short over the next few weeks.


2022 High Conviction - Recruit: More Downside Ahead with Normalisation of Recruitment Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/recruit-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:15070:1" rel="noopener">Recruit Holdings (6098 JP)</a> reported 4Q and full-year FY03/2022 results today. Revenue grew 23.9% YoY to JPY759.9bn while OP more than doubled to JPY45.4bn during 4QFY03/2022.</li>
<li>Full-Year revenues grew 26.5% YoY to JPY2,871.7bn which was about 3.0% above the upper range of guidance (JPY2,700-2,800bn) while OP of JPY378.9bn was within the guidance of JPY350-380bn.</li>
<li>Though full-year results were strong, 4QFY03/2022 results show that the company’s earnings have begun to weaken with normalisation of recruitment and staffing markets with Covid conditions easing off.</li>
</ul>



Recruit Holdings (6098 JP) reported 4Q and full-year FY03/2022 results today. Revenue grew 23.9% YoY to JPY759.9bn while OP more than doubled to JPY45.4bn during 4QFY03/2022.
Full-Year revenues grew 26.5% YoY to JPY2,871.7bn which was about 3.0% above the upper range of guidance (JPY2,700-2,800bn) while OP of JPY378.9bn was within the guidance of JPY350-380bn.
Though full-year results were strong, 4QFY03/2022 results show that the company’s earnings have begun to weaken with normalisation of recruitment and staffing markets with Covid conditions easing off.


Conviction Call Recruit: All Good Things Must Come to an End

Japan

Persol Holdings Co., Ltd. provides human resource solutions to a wide variety of customers worldwide. The Company's main operations include temporary staffing services, contract services, and employment services. Temp Holdings also provides outsourcing services and employment support services for job seekers.

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Persol Holdings (2181 JP)

Japanese HR Firm Persol Buys Singapore Staffing Platform Workmate

Singapore-based Workmate, an on-demand frontline staffing platform, has been acquired by Japanese-based HR conglomerate Persol Asia Pacific.

Tech in Asia

Conviction Call Recruit: More Downside Ahead

Our 2022 high conviction Recruit has dropped 26.8% YTD. Job openings in the US and job posting on Indeed declining as global recruitment markets...

Shifara Samsudeen, FCMA, CGMA

HRTech Sector Series: Changing HR Landscape Post-Covid Create Opportunities

The global HRTech market has been undergoing rapid changes and in this insight we have discussed 4 companies that will have an exciting year ahead...

Shifara Samsudeen, FCMA, CGMA

2022 High Conviction - Recruit: More Downside Ahead with Normalisation of Recruitment Markets

Recruit Holdings’ shares have declined 44.35% YTD, With weakening earnings, we think there is further downside as earnings started to weaken with...

Shifara Samsudeen, FCMA, CGMA

Conviction Call Recruit: All Good Things Must Come to an End

Though full-year results were strong, 4QFY03/2022 results show that the company’s earnings have begun to weaken with normalisation of recruitment...

Shifara Samsudeen, FCMA, CGMA

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