【Brand Analysis】JAC Recruitment (2124)
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A company whose main business is personnel placement. In particular, it has strengths in “middle,” “senior,” “global,” “specialist,” and“executive” and other high-class job listings.
Utilizing the strengths from the UK origin,strong inquiries from overseas-related areas of Japanese companies exist. The mobility of high-class personnel lags behind Europe and the US, and with the erosion of lifetime employment, further growth is expected.
The company’s performance has been favorable over the past 10 years. It is considered the result of accurately capturing changes in economic conditions and the employment environment. ROE is also high at 35%. The stock price has continued to rise on an upward trend.
As companies go global and social conditions change, the demand for high-class professionals is expected to continue increasing.
On the other hand,corporate demand for talent is highly influenced by the economy. And personnel placement is a fixed-cost industry where consultant salaries make up the majority of costs. Therefore,if demand declines, fixed costs cannot be covered and the company may fall into the red.
The company also fell into the red during the Lehman Shock, which is not an exception. In its financial statements, it states clearly that “liquidity is used to maintain consultant employment.”
Considering the risk of an economic downturn ahead, if fixed costs do not decrease, a 30% drop in demand could push into the red. While currently posting record highs,there is no need to invest in such times.
Because it is a solid company,buying in a recession would lead to large gains in a recovery. I would like to list it as a candidate.
