Skip to content
Alpha Edge Investing

Alpha Edge Investing

"Investors operate with limited funds and limited intelligence, they don’t need to know everything. As long as they understand better than others, they have an edge.” – George Soros

  • Home
  • Earnings Updates/ Corporate Actions
  • Research – Equities
  • Research – Fixed Income/ Bonds
  • Research – Unit Trust/ ETF
  • News
  • My Opinions/ Views
  • Others
  • About Me
  • Contact
  • Disclaimer
  • Community and Support Forums
  • Toggle search form

DBS: HRnetGroup Ltd – Buy Target Price $1.08

Posted on October 5, 2022October 5, 2022 By alanyeo No Comments on DBS: HRnetGroup Ltd – Buy Target Price $1.08
HRnet to acquire a majority stake in cloud-based workforce management software, Octomate
  • HRnet to acquire a 51% stake in Octomate, a cloud-based workforce management software
  • Synergistic whilst enhancing contractor stickiness
  • Aligns with management’s indicated criteria for acquisition
  • Maintain BUY with unchanged TP of $1.08

What’s new?

HRnet to acquire a 51% stake in Octomate, a fintech startup. The total consideration for the 49% stake amounts to S$676,530.61 while the consideration for the remaining 2% stake will be announced at a later date. According to HRnetGroup’s announcement, Octomate is a cloud-based workforce management software built on the blockchain for maximum security and scalability. It has the ability to power instant payments in areas such as salary, reimbursement of claims, and rewards. It also helps enterprises with onboarding, rostering, and timesheet management. The acquisition is expected to be completed around 10 October 2022.

Synergistic whilst enhancing contractor stickiness. Octomate’s integration with HRnet’s Ease Works app enables contractors to be paid instantaneously once timesheets have been approved. The timely disbursement of salaries and rewards should enhance contractor stickiness as contractors no longer have to wait till the following month to receive their salaries. The integration with Octomate further differentiates HRnet’s offerings which should attract contractors to work for HRnetGroup and its clients.

Our views

Small acquisition but in line with management’s communicated strategy for acquisition. While this acquisition is relatively small, it is aligned with management’s indication that acquisitions undertaken need to fulfil certain criteria, such as continued commitment from seller/ vendor and/or aiding in digitisation of workflow. Based on the announcement, it seems that the move checks the boxes. We retain our recommendation and target price.

Share this:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Telegram (Opens in new window)
  • Click to share on WhatsApp (Opens in new window)
Research - Equities Tags:HRnetGroup Limited

Post navigation

Previous Post: DBS: EC World Real Estate Investment Trust – Buy target Price $0.70
Next Post: DBS: New World Development – Buy target Price HK$30.00 (Previous HK$34.90)

Related Posts

CIMB: HRnetGroup Limited – Hold Target Price $0.80 (Previous $1.00) Research - Equities
Maybank: HRnetGroup Ltd – Buy Target Price $1.07 Research - Equities
Edge: HRnetGroup outlook stays healthy, attractive dividends to continue – RHB News
DBS: HRnetGroup Ltd – Buy Target Price $1.08 Research - Equities
PhillipCapital: HRnetGroup Limited – Buy Target Price $1.80 Research - Equities
CIMB: HRnetGroup Limited – Add Target Price $1.08 (Previous $1.15) Research - Equities
Downward spiral looms for 3QFY2022 – PhillipCapital Research - Equities
Edge: Like Singapore’s hiring outlook, HRnetGroup’s upside looks ‘robust’ – CGS-CIMB Research - Equities
KE: Invest ASEAN SG 2022 – Navigating growth & inflation Research - Equities
CIMB: HRnetGroup Limited – Add TP $1.15 Research - Equities
PhillipCapital: 3Q22 Singapore – Strategy Demand destruction spiral Research - Equities
Edge: Jardine Matheson’s top executives buy shares; HRnetGroup steps up share buyback Earnings Updates/ Corporate Actions

Leave a Reply

You must be logged in to post a comment.

Login

Log In
Register Lost Password
Get new posts by email
Chat on WhatsApp
  • Earnings Updates/ Corporate Actions
  • My Opinions/ Views
  • News
  • Others
  • Research – Equities
  • Research – Fixed Income/ Bonds
  • Research – Unit Trusts/ ETF

Copyright © 2023 Alpha Edge Investing.

Powered by PressBook Grid Blogs theme