2025-06-17-Jefferies-瑞可利控股公司（6098）_完成4500亿日元的股票回购_7页_216kb

Recruit Holdings Co. (6098 JP) Equity Research Summary

Date: June 17, 2025
Rating: Buy
Price Target: ¥11,000 (39% upside)
Flash Note:

• Share Buyback: Completed a ¥450bn share buyback (originally targeted ¥450bn on 52mn, increased to ¥1.1trn on 62mn) buying 55.6mn shares at avg. ¥7,939. Max cash position: ¥637bn in Q1.
• Cash Generative: Potential focus for further buybacks or dividend increases.
• Company: Provides HR support (domestic/overseas) & marketing media (lifestyle).

Equity Research Summary

Key Information

• Completion: Successful execution of the ¥450bn buyback via block trades below the intended target price of ¥7,903 ex-treasury.
• Details: Bought 55.6mn shares (approx 3.7% of post-buyback issued shares at Mar 2025). Average price ¥8,092. Reduced cash position (estimate ¥637bn in Q1 FY3/26).
• Valuation:
  • Price Target: ¥11,000.
  • P/E (FY3/26E): 38.9x (vs JPY peers: median 16.0x / domestic HR 15.9x for staffing; 25.0x for Recruit).
  • EV/EBITDA (FY3/26E): 21.3x.
• Financial Position: Cash position reduced; cash generative company (high Operating Profit Margin). Potential legislative hurdles.
• Focus: Future buybacks, small dividend increase, or M&A.
• Business:
  • HR Services (Staffing, Recruiting) Domestic & Intl (expanding US recruiting).
  • Marketing Media (housing, bridal, travel, dining, beauty). Diversified revenue base.
• Risks:
  • Emerging competition technology.
  • Regulation on big data.
  • Prolonged recession.
• Performance: Strong technical performance since Mar 2024, beat market (TOPIX). P/E levels higher than domestic HR peers based on latest forward estimates (FY3/26). Yield relative to the market capitalization or cash position is potentially attractive after buying back shares but is expected to be low initially due to unprofitability of share buybacks relative to the market? Clarification needed if ROE is low. High premium to peers for HR services.
• Analysts: Ken Oiwa & Hiroko Sato maintain Buy rating. Their record has been consistent.
• Disclosure: Standard JP business practices regarding client relationships.