KUCHING: JobStreet has not only recorded stronger than expected job postings in the Philippines and Indonesia but also overtaken JobStreetDB Singapore.
According to a research report by HwangDBS Vickers Research Sdn Bhd (HwangDBS Research) JobStreet performed better than expected with higher job postings and widened its lead on JobStreetDB.
This was more apparent in the Philippines and Indonesia with average fourth month 2013 (4M13) job postings growing circa 25 per cent year on year (y-o-y) each.
The research house stated that Malaysia remained JobStreet’ stronghold with a dominant market share compared with peers such as JobStreetDB, Monzter and MyStarJob.
“We observed an average of 24,000 job postings on its website per day in 4M13, which is similar to 4M12.
“However, the competitive gap with JobStreetDB has widened as its 4M13 average job postings fell to 3,500 versus 5,200 in 4M12. This indicates a much better market share gain by JobStreet in Malaysia,” it said.
“Following the festive season in February and recently concluded General Election (GE), we expect seasonally softer economic activities and lower/flat quarter on quarter job posting growth in 1Q13.
“However, we are confident of more job postings post-GE and a larger market share given Malaysia’s robust economy.
Bank Negara Malaysia forecast 5.5-six per cent gross domestic product (GDP) growth for Malaysia in 2013.”
Meanwhile, despite the matured Malaysian and Singaporean markets, its average daily postings were ahead of JobStreetDB by 20,500 and 10,000, respectively. In 4M12, JobStreet was behind JobStreetDB by 2,000 postings in Singapore but 19,000 ahead in Malaysia.
The recent acquisition of JobStreetDB at 19-22 times enterprise value/earnings before interest, tax, depreciation and amortisation (EV/EBITDA) (FY10-12) has created a valuation benchmark for online recruiters.
SEEK Ltd (SEEK) might not be able to maintain its stakes in two competing companies that operate in the same region.
There may be an mergers and acquisitions (M&A) for SEEK to capture the lion’s share in the southeast asian market. The price tag implies JobStreet is worth at least RM4.88 per share.
The research house also enthused that JobStreet had continued to expand its business in the region: setting up its base in Vietnam, growing operations in Indonesia and Thailand, and maintaining other operations.
“Given its significant market shares in most southeast asian markets, we believe it will focus on growing its current operations and improving efficiency instead of venturing into new markets.
Therefore, we expect profit before tax (PBT) margins to improve driven by lower expenses and costs.
The bulk of its cost is likely to come from staffing, advertising and recurring expenses such as office and equipment maintenance.”
Considering the market shares and JobStreet’ and JobsDB’s competitors, the online job portal/platform in the region remains competitive between the two major players.