6098:HKEXCountry Garden Services Holdings Co. Ltd. Analysis

Recruit Holdings is trading at JPY 11,305, comfortably above its 20‑day (10,620), 50‑day (8,876) and 200‑day (8,114) moving averages, confirming a bullish price trend. However, the RSI of 68 signals that the stock is approaching overbought territory and the MACD histogram has turned negative, hinting at short‑term momentum weakness. Valuation metrics are stretched: the forward PE of 32.6 is roughly double the industry average of 16.6 and the DCF‑derived fair value of JPY 6,604 is far below the current price, suggesting the market may be over‑pricing the shares. Despite this, analysts remain modestly optimistic, with a median target of JPY 11,850, implying about a 5% upside.
Fundamentally, Recruit delivered record FY2025 results, posting 11.5% revenue growth to JPY 3.70 trn and boosting ROE to 30.8% after a jump from 22.6% the prior year. The company’s gross margin of 59% and operating margin of 14% underline strong profitability, while a cash pile of JPY 725 bn dwarfs its debt of JPY 186 bn, supporting a sustainable dividend yield of 0.24% with a low 7% payout ratio. Management’s guidance for FY2026 expects 9% top‑line growth, driven by AI‑enhanced HR technology and a 10% workforce rationalisation to improve efficiency. These drivers, combined with a diversified global footprint, provide a solid foundation for medium‑ to long‑term upside.