EPS of $0.15 increased by 15.4% from previous year
Gross margin of 8.4%
Net income of 31.17M
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ManpowerGroup Greater China Limited (2180.HK) QQ1 2025 Results — Revenue Up 15.9% YoY with Margin Pressure in a Growth-Centric China Staffing Market
Executive Summary
ManpowerGroup Greater China Limited reported QQ1 2025 revenue of 1,709,142,500 CNY, up 15.93% year over year and 2.90% quarter over quarter, marking a continuation of improving topline momentum in China’s staffing and employment services market. Despite top-line growth, gross margin narrowed to 8.36% from the prior year’s higher levels, with gross profit of 142.92 million CNY. Operating and net margins remained modest, reflecting a lean cost structure and competitive pricing dynamics in the sector. EBITDA of 45.89 million CNY produced an EBITDA margin of 2.68%, and net income reached 31.17 million CNY, yielding a net margin of 1.82% for QQ1 2025. EPS stood at 0.15 CNY, broadly in line with prior periods. While the quarterly performance indicates discipline on expense control and ongoing demand for staffing solutions in Greater China, the shift in gross margin underscores ongoing pricing and mix challenges amid macro uncertainty and competitive intensity. Management commentary (where available) emphasizes revenue growth and efficiency as core levers, with no explicit forward guidance published in the provided data. The sequential improvement in revenue contrasts with episodic margin compression, suggesting a focus on higher-margin engagements and productivity initiatives going forward.
Key Performance Indicators
Revenue
1.71B
QoQ: 2.90% | YoY:15.93%
Gross Profit
142.92M
8.36% margin
QoQ: -13.98% | YoY:1.60%
Operating Income
42.82M
QoQ: -17.18% | YoY:26.09%
Net Income
31.17M
QoQ: -17.39% | YoY:14.60%
EPS
0.15
QoQ: -21.05% | YoY:15.38%
Revenue Trend
Margin Analysis
Key Insights
QQ1 2025 Revenue: 1,709,142,500 CNY, up 15.93% YoY and 2.90% QoQ.
Gross Profit: 142,920,000 CNY; Gross Margin: 8.36% (vs. 10.00%+ in some prior periods, indicating margin compression).
Revenue and profitability
- QQ1 2025 Revenue: 1,709,142,500 CNY, up 15.93% YoY and 2.90% QoQ.
- Gross Profit: 142,920,000 CNY; Gross Margin: 8.36% (vs. 10.00%+ in some prior periods, indicating margin compression).
- Operating Income: 42,823,000 CNY; Operating Margin: 2.51%.
- EBITDA: 45,885,000 CNY; EBITDA Margin: 2.68% (EBITDA / Revenue).
- Net Income: 31,166,000 CNY; Net Margin: 1.82%.
- EPS (diluted): 0.15 CNY; Weighted Avg Shs Out: 206,459,708 (diluted 203,595,577).
Performance trajectory
- YoY revenue growth of 15.93% reflects stronger activity in Greater China staffing demand vs. QQ1 2024.
- QoQ revenue increase of 2.90% indicates continued momentum into QQ1 2025, supported by seasonal hiring patterns and enterprise client demand.
- Gross margin compresses to 8.36% on QQ1 2025, signaling mix and pricing pressures even as revenue grows.
- Operating and net margins remain modest, with operating margin at 2.51% and net margin at 1.82%, consistent with a services-focused staffing model with disciplined cost control.
Quarterly progression context
- 4-quarter trend shows QQ4 2024 revenue of 1,661,042,500 CNY and QQ1 2025 revenue of 1,709,142,500 CNY, underscoring a steady top-line trajectory across the race to scale in Greater China.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.71B
15.93%
2.90%
Gross Profit
142.92M
1.60%
-13.98%
Operating Income
42.82M
26.09%
-17.18%
Net Income
31.17M
14.60%
-17.39%
EPS
0.15
15.38%
-21.05%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
No QQ1 2025 earnings call transcript data were provided in the material. As a result, theme-based highlights and management quotes could not be extracted. When a transcript becomes available, key themes typically include strategy execution, client mix, pricing and margin discipline, headcount trends, geographic and service mix evolution, capital allocation priorities, and commentary on macro conditions in Mainland China and the broader Greater China region.
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Forward Guidance
No explicit forward guidance is disclosed in the QQ1 2025 data provided. Investors should monitor subsequent earnings calls for management commentary on outlook, potential trajectory for revenue mix (e.g., higher-margin MSP/RPO engagements, enterprise solutions), margin normalization opportunities, and any capital allocation plans (investments in technology, regional expansion, or share repurchases). In the near term, the trajectory will likely depend on macro stability in China, demand for outsourced HR and recruitment services, and competitive dynamics in the staffing market.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
2180.HK Focus
8.36%
N/A
N/A
N/A
2108.HK
0.00%
0.00%
0.00%
0.00%
2181.HK
0.00%
0.00%
0.00%
0.00%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
QQ1 2025 results show a healthy top-line trajectory with a still-modest profitability profile. The growth of 15.93% YoY and 2.90% QoQ reflects a favorable demand environment for staffing and HR services in Greater China, albeit with margin compression indicating pricing and mix challenges. The absence of balance sheet details tempers confidence in cash flow resilience and leverage. Investors should consider a cautious but constructive stance: the company appears well-positioned to benefit from a growing corporate shift toward outsourcing and managed HR services, but upside hinges on improving margin mix, disciplined cost management, and the ability to convert revenue growth into sustainable free cash flow. Key monitoring points include: (1) progression of gross margin and operating margin in subsequent quarters, (2) clarity on cash flow generation and capital deployment, (3) any shifts in client mix toward higher-value engagements, and (4) regulatory and macro developments in Greater China that influence demand for staffing solutions.
Key Investment Factors
Growth Potential
China’s staffing and HR services market remains underpenetrated relative to enterprise demand. Growth drivers include increasing outsourcing of talent management, expansion of hiring at both manufacturing and service sectors, and rising adoption of digital HR solutions. ManpowerGroup Greater China’s diversified service offerings (workforce solutions and other HR services) position it to capture higher-value engagements and larger enterprise customers as demand stabilizes post-pandemic and as clients pursue productivity gains through contingent staffing, recruitment process outsourcing, and leadership development services.
Profitability Risk
Key risks include: (1) macroeconomic softness or volatility in Mainland China and regional markets impacting hiring activity; (2) pricing and mix pressure from intense competition in the staffing space; (3) regulatory and policy shifts affecting HR outsourcing, payroll, or cross-border operations; (4) integration and execution risk related to expanding service lines or new markets within Greater China; (5) potential currency and liquidity considerations if funding requirements evolve.
Financial Position
The QQ1 2025 results demonstrate topline growth and positive net income with modest margins, supported by EBITDA generation. However, balance sheet details (cash, debt levels, working capital, and liquidity) are not disclosed in the provided data, limiting precise assessment of leverage and cash flow health. Investors should seek disclosures on cash flow from operations, capital expenditures, and working capital evolution in future filings to fully gauge financial flexibility.
SWOT Analysis
Strengths
Established presence and brand in the Greater China staffing market with a diversified HR services portfolio.
Positive QQ1 2025 net income and EBITDA generation, signaling operational leverage and cost discipline.
YoY revenue growth supports ongoing demand for workforce solutions and related HR services in a large, developing market.
Weaknesses
Gross margin compression in QQ1 2025 (8.36%) relative to historically higher levels, indicating pricing/mix pressure.
Limited visibility on balance sheet strength and cash flow—no disclosed liquidity or debt metrics in the provided data.
Opportunities
Expansion of higher-margin services (RPO/ MSP) and continued digital HR solutions to improve mix.
Opportunities from cross-border coverage (Hong Kong/Macau/Taiwan) and expansion into adjacent HR services segments.
Threats
Macro and policy risk in China could impact hiring activity and client budgets.
Competitive intensity in the staffing and HR services sector may pressure margins.
Revenue concentration and client mix risk could magnify volatility in demand.