ManpowerGroup Greater (2180.HK) Q4 2024 Earnings Report

Executive Summary (Q4 2024): ManpowerGroup Greater China Limited posted solid quarterly results with revenue of 1,661,042,500 CNY, up 19.7% year-over-year and flat versus the prior quarter. The gross margin remained around 10.0%, delivering a gross profit of 166,151,500 CNY. Operating income reached 51,709,000 CNY (operating margin ~3.11%), and net income stood at 37,728,500 CNY (net margin ~2.27%), with basic earnings per share at 0.19 CNY. EBITDA was 55,310,000 CNY, yielding an EBITDA margin of about 3.33%. The company generated operating cash flow of 60,349,500 CNY and free cash flow of 59,542,000 CNY, while capex was modest at 807,500 CNY. Management continues to prioritize prudent cost control and leveraging the scale of Greater China’s staffing market, supported by a robust balance sheet. The balance sheet shows a substantial net cash position (net debt of -717,000,000 CNY) and ample liquidity (cash and short-term investments of ~930,048,000 CNY), underpinning dividends and potential selective investments. On a valuation basis, the stock trades at a modest multiple with a P/E of ~5.6x and a P/B of ~0.67x, alongside a dividend yield of ~3.45%, suggesting an attractive income and capital efficiency profile for a cash-generative HR services franchise in China. The absence of explicit forward guidance in the presented materials means investors should anchor expectations on continued demand for staffing solutions and HR services, while monitoring macro hiring trends, competitive dynamics, and regulatory developments in China.