Investment thesis
Despite short-term pain ahead due to economic contraction, I am bullish long term on 51job (JOBS), considering (i) its market leading position, (ii) its strong balance sheet in combination with the ability to generate significant cash flows and (iii) market consolidation tendencies in online jobs classifieds in periods of economic turmoil as the case of Australia-based Seek (SKLTY) suggests.
51job is the leading nationwide one-stop solution provider in China when it comes to recruitment and HR linked services to employers. The company provides both online and offline recruitment services addressing different target groups.