Financial Performance - Revenue for the year ended December 31, 2024, reached RMB 7,355.7 million, a 23.6% increase from RMB 5,952.0 million in 2023[4] - Operating profit surged by 101.9% to RMB 1,172.9 million in 2024, compared to RMB 581.0 million in 2023[4] - Adjusted net profit (non-GAAP) for 2024 was RMB 2,710.7 million, reflecting a 25.7% growth from RMB 2,156.2 million in 2023[4] - Net profit increased by 42.6% from RMB 1,099.2 million in 2023 to RMB 1,567.0 million in 2024[31] - Basic earnings per share for the year ended December 31, 2024, was RMB 1.80, compared to RMB 1.26 for the previous year, reflecting a growth of 42.9%[62] - Net profit attributable to shareholders for the year ended December 31, 2024, reached RMB 1,584,664, a 44.1% increase from RMB 1,099,227 in 2023[62] User Engagement and Growth - Average monthly active users increased by 25.3% to 53.0 million in 2024, up from 42.3 million in 2023[8] - The average daily active users reached 24.8% of monthly active users, indicating strong engagement on the platform[8] - The platform's user base expansion is attributed to targeted strategies in the manufacturing sector and enhanced blue-collar service capabilities[8] Operational Efficiency - The adjusted operating profit margin reached a historical high of 31.5% in 2024, driven by operational leverage and improved marketing efficiency[11] - The company aims to continue exploring AI's value in enhancing operational efficiency and user experience[9] Investments and Expenses - R&D expenses grew by 17.6% from RMB 1,543.6 million in 2023 to RMB 1,815.8 million in 2024, reflecting increased technology investments[27] - Marketing expenses rose by 4.1% from RMB 1,991.2 million in 2023 to RMB 2,073.1 million in 2024, primarily due to increased employee-related costs[26] Cash Flow and Assets - Cash and cash equivalents totaled RMB 14.7 billion as of December 31, 2024, with net cash flow from operating activities amounting to RMB 3.5 billion[32] - Total assets increased from RMB 17,940,048 thousand in 2023 to RMB 19,310,672 thousand in 2024, representing an increase of approximately 7.6%[63] - Net cash flow from operating activities improved from RMB 3,047,009 thousand in 2023 to RMB 3,542,495 thousand in 2024, an increase of about 16.2%[64] Shareholder Returns - The company authorized a new share repurchase plan allowing for the repurchase of up to USD 150 million of shares, effective from August 29, 2024[17] - The company repurchased a total of 1,670,190 Class A ordinary shares at a total cost of USD 12,994,513.70 during the reporting period[56] - A special cash dividend of USD 0.09 per ordinary share was approved, totaling approximately USD 79.2 million, paid in December 2023[83] - The company did not declare any final dividend for the year ended December 31, 2024[60] Corporate Governance and Compliance - The group complies with all corporate governance codes except for the separation of the roles of Chairman and CEO, which are held by the same individual[48] Strategic Initiatives - The company launched a proprietary AI model, "Nanbei Ge," which is the first compliant AI model in the domestic recruitment industry[9] - The company plans to enhance user experience and expand service offerings, focusing on AI technology and personalized product design[20] - Marketing initiatives for the 2024 Paris Olympics and the 2024 European Championship are expected to boost brand awareness[19] Acquisitions and Market Position - The acquisition of 77% stake in W.D Technology Investment Group Limited was completed for approximately RMB 374.3 million, enhancing the company's market position in blue-collar recruitment services[68] Liabilities and Financial Health - The debt-to-equity ratio is zero as the group has no interest-bearing borrowings as of December 31, 2024[40] - The total liabilities decreased from RMB 4,510,855 thousand in 2023 to RMB 4,347,852 thousand in 2024, a reduction of about 3.6%[63] - The group does not have any significant contingent liabilities as of December 31, 2024[43] - The group has no significant capital commitments as of December 31, 2024[44] Future Outlook - The company plans to publish its annual performance announcement and annual report on the Hong Kong Stock Exchange and its official website[86]

User Metrics - The average monthly active users for 2024 were 53.0 million, a 25.3% increase from 42.3 million in 2023[11]. - The total number of paying enterprise customers for the twelve months ended December 31, 2024, was 6.1 million, a 17.3% increase from 5.2 million in 2023[12]. Revenue and Profit - Total revenue for 2024 reached RMB 7,355.7 million (USD 1,007.7 million), representing a 23.6% increase from RMB 5,952.0 million in 2023[11]. - Revenue for Q4 2024 was RMB 1,823.6 million (USD 249.8 million), up 15.4% from RMB 1,580.2 million in Q4 2023[11]. - Operating profit for the year ended December 31, 2024, reached RMB 1,172,946, up 102.1% from RMB 580,971 in 2023[40]. - Net profit for Q4 2024 was RMB 444.2 million (USD 60.9 million), a 34.1% increase from RMB 331.2 million in Q4 2023[11]. - Adjusted net profit for the full year 2024 was RMB 2,710.7 million (USD 371.4 million), up 25.7% from RMB 2,156.2 million in 2023[27]. - The adjusted operating profit for the full year 2024 was RMB 2,316.6 million (USD 317.4 million), a 41.4% increase from RMB 1,637.9 million in 2023[26]. Operating Performance - Operating profit for Q4 2024 was RMB 380.6 million (USD 52.1 million), a 71.2% increase from RMB 222.3 million in Q4 2023[11]. - Adjusted operating profit for Q4 2024 was RMB 658.8 million (USD 90.3 million), up 26.8% from RMB 519.7 million in Q4 2023[11]. - The adjusted operating profit margin reached a historical high of 31.5% in 2024, driven by operational leverage and improved marketing efficiency[13]. Cash Flow and Assets - The operating cash flow for the full year 2024 was RMB 3,542.5 million (USD 485.3 million), an increase of 16.3% from RMB 3,047.0 million in 2023[29]. - Cash and cash equivalents as of December 31, 2024, totaled RMB 14,681.1 million (USD 2,011.3 million)[21]. - Total assets increased to RMB 19,310,672 as of December 31, 2024, from RMB 17,940,048 at the end of 2023, marking a growth of 7.6%[42]. Research and Development - R&D expenses for Q4 2024 were RMB 440.4 million (USD 60.3 million), a 2.4% increase from RMB 430.2 million in Q4 2023[21]. - Research and development expenses for the three months ended December 31, 2024, were RMB 440,360, slightly up from RMB 430,164 in the same period of 2023[40]. Shareholder Information - The company repurchased approximately USD 229 million worth of shares in 2024, representing 3.7% of the total outstanding shares as of December 31, 2024[30]. - The diluted adjusted EPS for the full year 2024 was RMB 3.00, a rise of 25.6% compared to RMB 2.39 in 2023[49]. Forward-Looking Statements - The company expects Q1 2025 total revenue to be between RMB 1.90 billion and RMB 1.92 billion, reflecting a year-over-year increase of 11.5% to 12.7%[31]. - Forward-looking statements may involve inherent risks and uncertainties, as outlined in the company's filings with the SEC and the Hong Kong Stock Exchange[36]. Financial Metrics - The company uses non-GAAP financial metrics to assess business performance, excluding non-cash equity incentive expenses[34]. - Non-GAAP financial metrics are considered supplementary indicators to identify business trends and help investors evaluate operational performance[34]. - The company emphasizes that non-GAAP financial metrics should not replace the most directly comparable GAAP financial metrics[35]. - The company encourages investors to consider its financial data comprehensively rather than relying on a single financial metric[35].

Group 1 - KANZHUN LIMITED Sponsored ADR (BZ) is a notable stock in the Computer and Technology sector, currently outperforming its peers with a year-to-date gain of approximately 10.5% compared to the sector average of 1.9% [4] - The Zacks Rank for KANZHUN LIMITED is 1 (Strong Buy), indicating a favorable outlook based on earnings estimate revisions and improving earnings prospects [3] - The Zacks Consensus Estimate for BZ's full-year earnings has increased by 0.7% in the past quarter, reflecting improved analyst sentiment [4] Group 2 - KANZHUN LIMITED is part of the Internet - Software industry, which has seen an average gain of 15.8% this year, indicating that BZ is slightly underperforming its industry [6] - Another stock in the Computer and Technology sector, Celestica (CLS), has outperformed with a year-to-date increase of 43% and a Zacks Rank of 1 (Strong Buy) [5] - The Electronics - Manufacturing Services industry, to which Celestica belongs, is ranked 3 and has gained 18.2% this year [6]

Core Viewpoint - Kanzhun Limited has been upgraded to a Zacks Rank 2 (Buy), indicating a positive shift in earnings estimates which is expected to influence its stock price favorably [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system highlights the importance of changing earnings estimates in determining stock price movements, as institutional investors often base their valuations on these estimates [3]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, which in turn affects stock prices [3]. Kanzhun's Earnings Outlook - Kanzhun's rising earnings estimates and the recent rating upgrade suggest an improvement in the company's underlying business, which is likely to drive the stock price higher [4]. - For the fiscal year ending December 2024, Kanzhun is expected to earn $0.80 per share, reflecting a 19.4% increase from the previous year [7]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimates and has a strong track record, with Zacks Rank 1 stocks averaging a +25% annual return since 1988 [6]. - Kanzhun's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].

Investment Strategy - The individual investor employs a diversified investment approach, incorporating fundamental investing (e.g., bottoms-up analysis), technical investing (e.g., historical chart analysis), and momentum investing (e.g., share price reaction post-earnings) to refine their investment process [1] - The investor uses Seeking Alpha as a platform to track the performance of their investment ideas and connect with like-minded investors who share similar investment interests [1] Kanzhun Ltd (BZ) Analysis - The investor previously issued a buy rating for Kanzhun Ltd (NASDAQ: BZ) in September, citing strong fundamentals despite a drop in share price [3] - The investor reiterates the buy rating for BZ, maintaining confidence in the company's fundamentals [3]

Investment Rating - The report maintains a "Buy" rating for BOSS Zhipin (BZ) [1] Core Views - BOSS Zhipin's Q3 2024 performance met expectations, with revenue growth of 19% YoY to RMB 1.912 billion and adjusted net profit of RMB 739 million, up 4% YoY, exceeding Bloomberg consensus estimates [2] - The company expects Q4 2024 revenue to be between RMB 1.795-1.810 billion, representing a YoY increase of 13.6%-14.6% [2] - BOSS Zhipin repurchased USD 220 million worth of shares in 2024 [2] User Metrics and Market Trends - Q3 2024 MAU reached 58 million, up 30% YoY and 6% QoQ, hitting a record high [2] - Paid enterprise customers totaled 6 million in the 12 months ending September 30, 2024, up 22% YoY and 2% QoQ [2] - The ratio of job seekers to enterprise users improved QoQ, potentially shortening recruitment cycles and temporarily slowing enterprise customer payment growth [2] Blue-Collar Business Performance - Blue-collar recruitment revenue exceeded 38% of total revenue in Q3 2024, with manufacturing revenue up 45% YoY [3] - The "Hailuo Preferred" project saw a 45% QoQ increase in attracted enterprises and a 40% QoQ rise in contract value [3] - Large enterprise revenue grew over 30% YoY, with ARPU up 5% YoY and flat QoQ [3] Financial Performance and Projections - Q3 2024 adjusted operating profit was RMB 605 million, representing 31.7% of revenue [3] - Adjusted net profit margin was 38.7%, down 5.8% YoY due to higher tax rates [3] - 2024-2026 Non-GAAP net profit forecasts are RMB 2.6/3.2/4.1 billion, with corresponding Non-GAAP P/E ratios of 18/15/11x [4] Financial Ratios and Valuation - 2024-2026 ROE projections are 10.4%/12.8%/15.9% [10] - 2024-2026 gross margin forecasts are 83.3%/84.4%/84.9% [10] - 2024-2026 net profit margin estimates are 20.5%/25.5%/31.3% [10] - The stock closed at USD 14.58 with a market cap of USD 6.373 billion [4] Cash Flow and Balance Sheet - 2024-2026 operating cash flow projections are RMB 2.974/4.352/4.548 billion [8] - 2024-2026 net cash increase forecasts are RMB 337 million/1.634 billion/1.711 billion [8] - Total assets are projected to grow from RMB 19.096 billion in 2024E to RMB 24.175 billion in 2026E [9]

Investment Rating - The investment rating for BOSS Zhipin (BZ.O) is "Outperform the Market" [4][15][16] Core Views - The company reported stable growth in Q3 2024, with revenue reaching 1.91 billion yuan, a year-on-year increase of 19%, aligning with prior guidance [2][8] - The B-end revenue was 1.89 billion yuan, up 18.7%, while C-end revenue surged by 49% to 22.5 million yuan, indicating strong performance in blue-collar recruitment, particularly in manufacturing and logistics sectors [2][8] - The company anticipates Q4 2024 revenue growth of 13.6%-14.6%, reflecting a moderate economic recovery [3][15] - The management has initiated a share repurchase plan, demonstrating confidence in long-term growth [3][15] Summary by Sections Financial Performance - In Q3 2024, adjusted operating profit was 610 million yuan, a 9% increase, while adjusted net profit was 740 million yuan, up 4.1% [2][8] - The adjusted net profit margin decreased to 38.7%, down 6 percentage points year-on-year, primarily due to a higher tax rate [2][10] - The average monthly active users reached 58 million, a 30% year-on-year increase, with a steady rise in ARPPU to 1,172 yuan, reflecting strong customer retention [2][9] Business Segmentation - The blue-collar recruitment sector outperformed the white-collar sector, with manufacturing revenue growing over 45% year-on-year [2][8] - The number of paid enterprise clients reached 6 million, a 22% increase year-on-year, although the growth rate of paid users has slowed due to a mismatch in job demand and talent supply [2][9] Future Outlook - Revenue forecasts for 2024-2026 are set at 7.24 billion, 8.05 billion, and 9.56 billion yuan, with adjusted net profits of 2.67 billion, 3.52 billion, and 4.31 billion yuan respectively [3][15] - The company is expected to maintain a strong position in the blue-collar recruitment market, supported by favorable domestic economic policies [3][15]

Investment Rating - The report maintains a "Buy" rating for BOSS Zhipin (BZ) with a target price of $19.11 per ADS, based on a 20X PE multiple for 2025 [5] Core Views - BOSS Zhipin's 24Q3 revenue grew 18.98% YoY to RMB 19.12 billion, with recruitment services contributing RMB 18.89 billion (up 18.7% YoY) [2] - The company's adjusted net profit reached RMB 739 million in 24Q3, up 3.5% YoY and 2.8% QoQ [2] - BOSS Zhipin's MAU grew 30% YoY to 58 million in 24Q3, with 40 million new users added in the first nine months [3] - The company's blue-collar recruitment business now accounts for 38% of total revenue, showing significant growth potential [3] Financial Performance - Revenue is expected to grow 23.3% to RMB 7.34 billion in 2024 and 10.1% to RMB 8.08 billion in 2025 [4] - Non-GAAP net profit is projected to reach RMB 2.72 billion in 2024 and RMB 3.10 billion in 2025 [4] - The company's P/E ratio is expected to decrease from 22 in 2023 to 15 in 2025, indicating improving valuation metrics [4] Operational Highlights - Paid enterprise users reached 6 million in the past 12 months, up 22.4% YoY [3] - New job postings increased 18% YoY in 24Q3, driven by efficient business models and market share gains [3] - The company has been actively repurchasing shares, with $220 million repurchased this year and an additional $150 million authorized [3] Industry Position - BOSS Zhipin is recognized as a leading online recruitment platform in China, benefiting from strong network effects [3] - The company's focus on blue-collar recruitment is expected to drive further growth and market expansion [3]

Financial Data and Key Metrics - Revenue for Q3 2024 reached RMB1.91 billion, up 19% year-on-year [8] - Net income was RMB460 million, with adjusted operating income at RMB610 million, reflecting a 10% year-on-year growth [8] - Share-based compensation expenses declined both year-on-year and quarter-on-quarter, entering a phase of gradual reduction [11] - Net cash provided by operating activities was RMB812 million, relatively stable compared to the same period last year [34] - Cash and cash equivalents, short-term time deposits, and short-term investments totaled RMB14.6 billion as of September 30, 2024 [35] Business Line Performance - Average monthly active users on the BOSS Zhipin app reached 58 million, a 30% year-on-year increase [13] - Newly posted job positions increased by 18% year-on-year, driven by user growth and market share expansion [14] - Paid enterprise customers reached 6 million in the trailing 12 months, up 22% year-on-year [18] - Blue-collar business revenue contribution increased to over 38% of total revenue, with the Hailuo Conch-led project growing by 45% quarter-on-quarter [19] - The platform facilitated an average of nearly 200 million monthly mutual achievements, indicating successful interactions between enterprise users and job seekers [20] Market Performance - The job seeker-to-enterprise user ratio continued its upward trend, shortening recruitment cycles for enterprises [16] - Retention rates for enterprise users remained solid, with the number of paid enterprise customers experiencing decent growth [15][17] - Blue-collar sectors, particularly manufacturing, logistics, and automobile industries, showed strong performance, with manufacturing revenue growing over 45% year-on-year [52][53] Strategic Direction and Industry Competition - The company remains focused on user growth, paying ratio stability, and ARPU improvement as key revenue drivers [43][44][46] - Investments in technology and operational efficiency continue, with a focus on sustainable cost control and strong operating leverage [27][30] - The company repurchased $130 million worth of shares, bringing the total repurchase for the year to $220 million, demonstrating confidence in long-term growth [22][36] Management Commentary on Operating Environment and Future Outlook - Management noted that the recruitment market remains challenging but highlighted positive results from focusing on key growth drivers [12] - The company expects Q4 2024 revenue to be between RMB1.795 billion and RMB1.81 billion, a year-on-year increase of 13.6% to 14.6% [36] - For 2025, the company anticipates maintaining a 15% user growth rate and improving profitability through operating leverage and cost control [43][69][70] Other Important Information - The company allocated additional resources to brand promotion during the Paris 2024 Olympic Games and Euro Cup 2024, leading to increased marketing expenses [9] - R&D expenses increased by 12% year-on-year to RMB464 million, with adjusted R&D expenses up 18% year-on-year [31] - G&A expenses rose by 31% year-on-year due to higher employee-related expenses and one-off expenditures [32] Q&A Session Summary Question 1: Impact of Government Policies and Revenue Growth in 2025 - The company observed improvements in newly added enterprise users since October, indicating positive effects from government policies [40] - Key revenue drivers for 2025 include user growth, paying ratio stability, and ARPU improvement, with blue-collar business contributing significantly [43][44][46][47] Question 2: Blue-Collar vs. White-Collar Performance and User Growth Potential - Blue-collar revenue growth outpaced white-collar, with manufacturing, logistics, and automobile industries performing well [51][52] - The company estimates China's marketable employees at over 400 million, indicating significant growth potential for both individual and enterprise users [56][57] Question 3: Blue-Collar Recruitment Strategy and Profitability Outlook - The company's blue-collar strategy focuses on creating a balanced ecosystem for factories, intermediaries, workers, and platforms [63][64] - Profitability in 2025 is expected to improve through gross margin stability, sales efficiency, and disciplined spending on new business initiatives [70] Question 4: Overseas Business and AI Applications - Overseas business investments will remain limited in 2025, with a focus on small-scale experiments [74][75] - AI applications are being used to enhance user safety and operational efficiency, with no immediate plans for large-scale AI hardware investments [76][79][80]

Company Performance - Kanzhun Limited reported quarterly earnings of $0.23 per share, exceeding the Zacks Consensus Estimate of $0.22 per share, and showing an increase from $0.22 per share a year ago, representing an earnings surprise of 4.55% [1] - The company achieved revenues of $272.4 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 3.31%, and up from $220.21 million in the same quarter last year [2] - Over the last four quarters, Kanzhun has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.21 on revenues of $248.51 million, and for the current fiscal year, it is $0.81 on revenues of $1.01 billion [8] - The estimate revisions trend for Kanzhun is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [7] - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call [3] Industry Context - The Internet - Software industry, to which Kanzhun belongs, is currently ranked in the top 14% of over 250 Zacks industries, suggesting a favorable industry outlook [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [6]