[Huachuang Social Services] New Addition: Career International Key Recommendation: AI Narrative May Cause Actual Business Growth and Technology Exploration to Be Undervalued

English summary

Previously affected by the AI narrative (replacing professional positions), the company's actual main business growth has been undervalued. 1. Since Q1, the company's various businesses have shown positive growth, especially the headhunting business, continuing the double-increase trend in revenue and gross margin since 2025. In the company's business structure, headhunting is an important source of business. After 2023, the sharp decline in the headhunting business was the main reason for the company's profit decline (revenue -38%, gross margin -3pct). In 2024, the downward trend continued (revenue -11%, gross margin -1pct). After 2025, the company's headhunting business showed signs of recovery, with revenue increasing 6% and gross margin +4pct (and it was continued repair in 25H1 and 25H2). In 26Q1, the company's headhunting business growth rate was 25%, gross margin continued to increase, making a positive contribution to profit. The apparent non-GAAP net profit growth was affected by the gain from disposing of a subsidiary's equity in the same period last year (20-30 million CNY), while the actual non-GAAP growth rate was above 50%. 2.…