Persol Holdings

Research evidence excerpt

Persol Holdings

ource: LSEG, Nomurabusiness. We note that better-than-expected benefits from AI, proactive hiring by companies,

and consultant hiring could provide upside over our forecast. Performance / Stock price data

(%) 1M 3M 12M

Focusing on frontline workers Absolute returns 8.4 9.6 -6.0

We think the stock is undervalued on concerns that AI will crimp earnings, as clerical work Relative to 4.6 -6.7 -57.2

accounts for roughly 90% of temporary staffing sales and white-collar domains for around half Russell/Nomura Large

Capof placement sales. While some corporate recruitment demand will likely decline, we see

Market capitalization (¥bn) 591.0

growth opportunities not only in the structural issue of labor shortages, but also in survivor 52-week low stock price (¥) 218.0

benefits and increases in value added due to AI. We expect the company’s profits to continue 52-week high stock price (¥) 305.4

rising over the medium term via increases in average rates at the temporary staffing business Shares outstanding (mn) 2,278.4

and moves to strengthen its position in high-end domains at the placement business. It has also Daily turnover (3-M avg) (¥mn) 2,040.4

positioned frontline workers as a growth domain in its medium-term business plan. It is planning Note: Market capitalization and shares

outstanding in this table include treasury stock.

to concentrate management resources at the R&D function unit on the frontline workers domain Source: LSEG, Nomura

with an eye to synergies between Gojob and operations in Japan. While we think it will take

time for the frontline workers domain to contribute to profits, we like the direction of its plans.

Earnings table Research Analysts

26/3 27/3E 28/3E 29/3E Japan internet & media

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