HRnetGroup AGM 2026: Is the 5.5% Yield Enough to Stay?

HRnetGroup (CHZ) has been a reliable dividend payer since its IPO in 2017, and FY 2025 is no exception. The group declared a total dividend of S$0.042 (S$0.020 interim and S$0.022 final), marking a steady 5% increase over previous years.

At the current share price of S$0.76, that sits at an attractive 5.5% yield. But is 5.5% enough of a reason to keep holding?

I walked away from Tuesday evening’s AGM, filled with excellent food and a very warm reception, with a resounding “Yes.”

Here are three reasons why I’m staying the course. (And no, the delicious crab sauce on the mantou and that tender braised duck isn’t one of them.)

Resilient Business Model: Thriving while Others Struggle

There’s no doubt the business environment has been punishing lately.

From the pandemic (2020-21) and the war in Ukraine (since 2022) to the 2024 US tariffs and the current Middle-East conflict, uncertainty has become the only constant.

Naturally, when volatility spikes, the recruitment industry is often the first to feel the chill.

However, while global peers are grappling with shrinking revenues and plummeting profits, HRnetGroup has defied the odds.

They aren’t “immune” to these crises, but their diversified model acts as a natural shock absorber through three key pillars.

1. The “Twin Engines” (PR + FS)

The group balances its high margin Professional Recruitment (PR) with high volume Flexible Staffing (FS).

While PR can be cyclical, the lower-margin FS segment has been the “saviour” during this period of heightened uncertainties. When companies are too hesitant to commit to full-time hires, they turn to flexible staffing to get the work done.

As shown in the above chart, the deliberate ramp-up of FS since 2021 has created a defensive base that effectively mitigates the softer performance in PR.

2. The Co-Owner Structure

This is their secret sauce. With 47 co-owners having significant “skin in the game,” cost management isn’t just a corporate policy—it’s personal. This internal discipline is a major reason why they remain the most profitable recruitment firm in Singapore.

3. An Asian-Centric Focus

Unlike many global competitors heavily exposed to European turmoil, HRnet’s footprint is firmly in Asia. This geographic concentration has shielded them from the worst of the Western economic slowdown.

What about the recent Middle-East conflict?

HRnet actually dodged a bullet by delaying their expansion into Dubai.

While they aren’t directly affected, they noted that some clients are adopting a “wait-and-see” attitude. But here’s the kicker: when clients wait to hire permanently, where do they turn?

Yes, you got it–Flexible Staffing.

By continuing to ramp up FS overseas, evidenced by the 21% and 40% volume growth in Taiwan and Indonesia last year, HRnet is proving it can withstand the economic turmoil.

Nimble and Adaptive: Strength Through Diversity

Resilience is only half the story; agility is the other.

With boots on the ground across 18 Asian cities, HRnetGroup is positioned to pivot quickly to wherever the economic “wind” is blowing. While some regions face headwinds, others are seeing clear tailwinds:

• Taiwan: Powered by the semiconductor and tech boom.
• Indonesia: Tapping into the consumption of Southeast Asia’s largest economy.
• Malaysia: Benefiting from the electronics manufacturing upswing.
• Vietnam: A high-potential “frontier” market reminiscent of China’s economy 20 years ago.
• China: A “patchy” recovery, though semiconductors and consumer sectors remain bright spots.

The Return to Roots: Executive Search

As for the Singapore home market, hiring remains cautious, and FS is stable albeit the slight decline last year. HRnet is making a strategic pivot back to its origins of Executive Search to seek growth.

It’s an interesting “full circle” moment. The company started as headhunters for senior roles before expanding into broader permanent placements.

They are now doubling down on Executive Search again for a very specific reason: the Human Touch. While AI algorithms and hiring portals are great for junior roles, senior talents often aren’t “looking” for jobs—they have to be sought out.

This is where HRnet’s expertise triumphs over tech. The strategy is already paying off: Executive Search Gross Profit (GP) grew 16.2% last year, effectively halting a two-year decline in the PR segment.

Beyond Recruitment: The Shift to Recurring HR Services

The new tagline—“HRnet for All HR”—is what excites me most about the group’s direction this year.

By expanding beyond traditional recruitment, HRnet is increasing its total addressable market and creating synergetic opportunities across its business lines.

They are already making tangible progress:

• Octomate (Workforce Management SaaS): This platform is gaining serious traction. In January alone, they secured contracts with major local entities like Sentosa Development Corporation and Outward Bound Singapore.
  
  A quick look at their client list reveals global heavyweights like Amazon and BMW are already using the platform, proving that their tech can compete at the highest level.
  
• doudou (Employer of Record): Launched in Taipei in 2025, doudou is a clever play on the “remote work” trend. It acts as an Employer of Record (EOR), allowing companies to hire cross-border talent without needing a local legal entity.
  
  It essentially handles the complex payroll and compliance “headaches” for the client, creating a very sticky, recurring revenue stream.

While these digital plays are still in their early stages, they represent a fundamental evolution.

If successful, they will transform HRnetGroup from a cyclical recruitment firm into an indispensable, all-in-one HR partner, further entrenching their position in the Asian market.

Final Thoughts: Attractive Yield for Potential Growth

During the AGM, a fellow shareholder voiced a frustration many likely share: despite the company’s consistent performance and management’s optimism, the stock price has essentially gone nowhere.

In fact, it continues to trade below its 2017 IPO price of S$0.90.

However, investing is rarely a single “point-in-time” event. For those who have accumulated positions over the last nine years, the total return (including dividends) should comfortably be in the green.

While I agree with the sentiment that low liquidity hampers the stock, I believe the “muted” growth in sales and profits recently has been the larger drag on the share price.

But as investors, we have to look forward: How do you see the company’s potential from here?

For me, the answer is clear. HRnetGroup is a far more attractive proposition today than it was at its IPO.

You are essentially paying a lower entry price for a business that is significantly larger, more diversified, and equipped with entirely new growth engines.

All while receiving a yield of 5.5%.

For a more comprehensive coverage of the Q&A session, you can refer to Happily’s post at InvestingNote.