In an effort to expand its business in the Greater China region, one of the largest staffing companies ManpowerGroup Inc.MAN has formed a strategic partnership with CITICPE, a leading investment firm in China.
ManpowerGroup will merge its present operations in Greater China (Hong Kong, mainland China, Macau and Taiwan) and partner with CITICPE to utilize their combined professional knowledge about the region. ManpowerGroup's management will operate this joint venture.
ManpowerGroup's Asia Pacific and Middle East (APME) president Ram Chandrashekar said that the partnership will enable the company to exploit CITICPE's local resources, and thereby strengthen its position in Greater China.
We believe this joint venture will not only allow ManpowerGroup to deliver wider range of dedicated workforce solutions but will also improve the company's revenue generation from APME region in the long run.
In the second quarter, the company's revenue from the APME region increased 5.7% (on a constant currency basis), mainly driven by the Greythorn buyout. Japan, where the company's has its largest operation in the region, reported 4% revenue growth while the markets of Korea, India and Taiwan are seeing a steadily improving demand environment.
Although China's revenue remained flat, the Permanent Recruiting business holds promise in the long-run. Revenue in APME is expected to grow around 12% to 14% in the current quarter.
ManpowerGroup currently has a Zacks Rank #2 (Buy). Other favorably ranked stocks in this sector include Robert Half International Inc. RHI , Randstad Holding NV RANJY and KeyCorp. KEY . All these stocks hold the same rank as ManpowerGroup.
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