51job, Inc. (51job) reported a weak set of results in 1Q 09, with revenues declining q-o-q and y-o-y, as well as falling short of our expectations. Operating performance was also poor y-o-y. However, focused and efficient cost control measures yielded savings, which resulted in a sequential improvement in profitability despite a revenue decline. The ADR has appreciated significantly since our previous 4Q 08 update report, reflecting broader…

Management’s forecast for decline in revenues in 1Q 09 is significantly higher than the fall witnessed in 4Q 08, indicating a worsening operating scenario for 51job. The economic slowdown has materially impacted recruitment activities in China. HR budgets have been affected, and as a result, employers are adopting a calculated approach to hiring requirements. With no signs of recovery in 51job’s markets or visibility in the medium term…

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51job, Inc. (51job) reported a weak set of results in 3Q 08, below our expectations, with revenues declining q-o-q and y-o-y. Operating and net performances were also down y-o-y reflecting higher cost of services and marketing expenses. The ADR has depreciated significantly since our 2Q 08 update report dated 24 September 2008, reflecting weaker demand for recruitment services in the deteriorating economic…