PAYX Latest Report

Financial Performance

PAYX reported total operating revenue of Rmb1.509bn on February 28, 2025, reflecting its stable performance in the industry. Although lacking in prior data for comparison, other financial indicators show the company's strong profit-making ability and cost control.

Key Financial Data

1. Gross profit was Rmb1.122bn, with a gross margin of 74.34%, indicating the company's strong profitability in selling products or services.

2. Net profit was Rmb519mn, with a net margin of 32.82%, showing the company's effectiveness in controlling costs and expenses.

3. Marketing, sales, and general administrative expenses were Rmb430mn, with a low ratio to total operating revenue, indicating good cost control.

4. Earnings before income taxes were Rmb686mn, reflecting the company's good profit level based on operating revenue.

5. Net cash provided by operating activities was Rmb1.557bn, indicating good cash flow generated from operations, which supports its revenue sustainability.

Peer Comparison

1. Industry-wide analysis: Companies in the service industry typically face fluctuations in revenue due to market demand, changes in customer base, and competition. If the industry as a whole grows, PAYX's revenue may also perform well. According to search results, the industry market is expected to continue growing in 2025, especially in supporting small and medium-sized enterprises. [Source](https://www.sec.gov:443/Archives/edgar/data/723531/0000950170****8425/payx-20241130.htm)

2. Peer evaluation analysis: PAYX's total operating revenue in the first six months of 2025 was US$2.635bn, up 3.60% YoY. Although lacking specific industry data, PAYX's high gross margin and net margin suggest its profitability may exceed industry averages.

Summary

PAYX's financial performance in 2025 shows strong profit-making ability and cash flow. Although lacking direct YoY data to assess revenue changes, the company's cost control and profit performance remain strong from other financial indicators.

Opportunities

1. With the industry market's continued growth, PAYX has opportunities to further expand its market share in small and medium-sized enterprises.

2. The company plans to drive business growth through technological innovation and improved customer experience, which is expected to attract more customers in the future.

3. Negotiations with competitor Paycor HCM indicate the company is actively seeking opportunities to expand its market share. [Source](https://finance.stockstar.com/IG2025010600002735.shtml)

Risks

1. Intensified competition within the industry may put pressure on revenue and affect the company's market share.

2. If overall market demand declines, PAYX's revenue and profits may be negatively affected.

3. Continuous investment in innovation and services is required, and failure to effectively execute may impact its market competitiveness.