HRnetGroup is the largest recruitment agency in the Asia Pacific, excluding Japan. It operates 11 brands in 10 Asian cities, which comprise Singapore, Kuala Lumpur, Bangkok, Hong Kong, Taipei, Guangzhou, Shanghai, Beijing, Tokyo, and Seoul. The company is headquartered in Singapore. In his note, Yeo says the economies for most of HRnetGroup’s operating markets in Asean as well as China will do well in 2026. This will result in more job placements and hiring activity, thus driving business.
The labour market in Singapore continues to be healthy, says Yeo, citing the results from the Ministry of Manpower’s (MoM) latest Labour Market Advanced Release for 3Q2025. According to MoM, total employment growth for 3Q2025, at 24,800 employees, is 11% higher on a y-o-y basis than 3Q2024, at 22,300 employees. Singapore’s retrenchment rate is largely unchanged, at 3,500 employees in 3Q2025 versus 3,540 in 2Q2025.
Yeo expects hiring to pick up in 4Q2025 given that a higher proportion of companies (44.1%) indicated in MoM’s business expectation polls for 3Q2025 that they are looking to hire, as compared to 43.7% in 2Q2025.
RHB’s economists are forecasting “firm economic growth” for China, with GDP expected to grow by 4.8% in 2026. Indonesia and Malaysia’s GDP growth rates are expected to grow by 5% and 4.7% in 2026 respectively, up from 4.8% and 4.2% in 2025.
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HRnetGroup’s expansion into Vietnam will support the company’s growth, Yeo writes. Besides being able to tap on Vietnam’s fast-growing economy, HRnetGroup will gain access to a wider talent pool to staff its IT, data science, and product teams.
HRnetGroup’s counter is trading at slightly above its historical mean forward of 13x PE, an undemanding valuation, Yeo writes. He last raised his target price for HRnetGroup to 85 cents, up from 84 cents, on Oct 27.
As at 4.10pm, shares in HRnetGroup are up by 1.40% at 72.5 cents. The company's stock is up by over 5% year to date.
