Core Viewpoint - Haotong International initiates coverage on Boss Zhipin (02076) with an "Outperform" rating and a target price of HKD 105, highlighting its unique business model in China's online recruitment sector and the potential of GAI technology to strengthen its leading position [1] Group 1: User Growth and Market Position - The company continues to see growth in new user numbers, with an average monthly active users (MAU) of 63.8 million as of Q3 2025, representing a year-on-year increase of 10% and a quarter-on-quarter increase of 0.3% [1] - The total number of paid enterprise users increased by 13.3% year-on-year and 4.6% quarter-on-quarter, reaching 6.8 million by the end of Q3 2025 [1] - Boss Zhipin's daily active user (DAU) market share reached 43%, which is double that of the second competitor, indicating a strong market position [1] Group 2: Industry Supply and Demand Dynamics - In Q3, the company experienced its first instance in nearly three years where the average daily active users of enterprise clients outpaced that of job seekers, signaling a performance turning point [2] - Revenue from blue-collar business continues to outperform the overall platform, while the white-collar segment sees increased participation from small and medium enterprises [2] - The growth rate of new job postings in the white-collar sector has exceeded that of the same period in 2023, suggesting a positive trend for Q4 [2] Group 3: Operational Efficiency and Profitability - The company has improved operational efficiency, with estimated non-GAAP costs and operating expenses reduced by RMB 152 million in Q3, leading to an operating profit margin of 42% [3] - The company is expected to maintain prudent expense control and efficiency measures, with profit margins in Q4 projected to remain stable compared to Q3, and an overall improvement in profit margins anticipated for 2025 [3] Group 4: AI Business Development - The AI job-seeking assistant has been fully launched, resulting in a significant increase in user interaction rates [4] - The AI communication assistant has been integrated into existing commercial products, enhancing the average two-way conversion rate by 7% [4] - The company is cautiously exploring diversified AI management services and bulk recruitment solutions targeting high-end white-collar, gold-collar, and blue-collar sectors, with initial benefits being realized [4]

Core Points - A significant fire occurred in multiple residential buildings at Hong Kong's Tai Po Wu Kwan on November 26, resulting in major casualties and drawing widespread concern from society [1] - BOSS Zhipin has donated 3 million HKD to support emergency rescue, transitional housing, and post-disaster recovery efforts for the victims of the Tai Po fire [1]

Core Insights - The company has exceeded revenue expectations, driven by a significant recovery in demand, achieving growth targets despite restrained marketing investments [1][2] - The adjusted net profit forecasts for 2025, 2026, and 2027 have been raised to 3.71 billion, 4.20 billion, and 4.85 billion RMB respectively, reflecting a positive outlook [1] Revenue Performance - For Q3 2025, the company reported operating revenue of 2.163 billion RMB, representing a year-on-year increase of 13.17% [1] - The GAAP net profit reached 806 million RMB, up 72.22% year-on-year, while the adjusted net profit was 991 million RMB, reflecting a 34.23% increase [1] Demand Recovery Indicators - The number of new job postings increased by 25% year-on-year in Q3, indicating a clear improvement in recruitment demand [2] - The average daily active users on the recruiter side saw a significant increase, surpassing the job seeker side for the first time in three years [2] - The number of paid enterprise clients grew by 13.3% year-on-year, reaching 6.8 million by September 30, 2025 [2] Marketing and User Growth - The company reduced R&D expenses by 5.42 percentage points and sales expenses by 9.13 percentage points year-on-year, demonstrating effective cost control [2] - Despite restrained marketing efforts, the company added over 40 million new users from January to October 2025, indicating strong brand loyalty and platform stickiness [2] - The financial results reflect profit growth driven by recovering demand, with future contributions expected from AI enhancements in matching efficiency and new product offerings [2]

Core Insights - BOSS Zhipin-W (02076) shares increased nearly 4%, with a current price of 84.35 HKD and a trading volume of 29.148 million HKD [1] Financial Performance - For Q3 2025, BOSS Zhipin reported a revenue of 2.16 billion HKD, representing a year-on-year increase of 13.17% [1] - The GAAP net profit attributable to shareholders was 806 million HKD, up 72.22% year-on-year [1] - Adjusted net profit reached 991 million HKD, reflecting a 34.23% increase compared to the previous year [1] Market Trends - The recruitment market is showing steady recovery, with increased penetration in blue-collar and lower-tier cities [1] - The average daily active users on the recruiter side increased more than the job seeker side for the first time in three years during July to September 2025 [1] - The number of paid enterprise clients grew by 13.3% year-on-year, reaching 6.8 million as of September 30, 2025 [1] User Engagement - The payment rate for paid users has increased both year-on-year and quarter-on-quarter [1] - The revenue growth of 13.3% in this quarter indicates a significant acceleration compared to previous periods [1]

Investment Rating - The investment rating for BOSS Zhipin is "Buy" [6][10]. Core Insights - The report highlights a significant recovery in demand, leading to accelerated revenue growth. Despite restrained marketing expenditures, the company achieved its growth targets [2][10]. - The company has demonstrated excellent cost control, resulting in continued positive growth in core operating metrics and an increase in profit margins. Adjusted net profit estimates for 2025, 2026, and 2027 have been raised to 3.71 billion, 4.20 billion, and 4.85 billion RMB respectively [10][11]. - The report indicates that the recruitment demand has shown clear improvement, with new job postings increasing by 25% year-on-year in Q3 2025. The number of active users on the recruiter side has also seen a significant rise [10][11]. Financial Summary - Revenue for 2023 is projected at 5,952.03 million RMB, with a growth rate of 31.94%. This is expected to increase to 7,355.68 million RMB in 2024, representing a growth rate of 23.58% [4][11]. - The gross profit for 2023 is estimated at 4,892.17 million RMB, with a steady increase projected in subsequent years [4]. - The adjusted net profit margin is expected to rise from 41.21% in 2023 to 48.09% by 2027, indicating improved profitability [4][11]. Market Data - The current stock price is 80.00 HKD, with a market capitalization of 77,012 million HKD [6][7]. - The stock has a 52-week price range of 47.45 to 97.80 HKD, indicating volatility in the market [7]. Performance Indicators - The report notes that the company has maintained a high level of user engagement, with over 40 million new users added from January to October 2025, despite a reduction in marketing spending [10][11]. - The adjusted net profit for Q3 2025 was reported at 9.91 billion RMB, reflecting a year-on-year increase of 34.23% [10].

Core Viewpoint - The report from Guotai Junan maintains a target price of HKD 109.66 for BOSS Zhipin-W (02076) and keeps a "Buy" rating, highlighting that both revenue and performance exceeded expectations, driven by a clear recovery in demand, while achieving growth targets despite restrained marketing spending [1] Group 1: Performance Overview - For Q3 2025, the company reported operating revenue of CNY 2.163 billion, a year-on-year increase of 13.17%; GAAP net profit attributable to shareholders was CNY 806 million, up 72.22%; adjusted net profit reached CNY 991 million, reflecting a 34.23% increase [1] Group 2: Demand Recovery - The acceleration in revenue and performance growth is primarily attributed to a notable recovery in demand. Key indicators include: 1. A 25% year-on-year increase in the number of new job postings in Q3 2. For the period of July to September 2025, the average daily active users on the employer side increased more than on the job seeker side, marking the first occurrence in three years 3. As of September 30, 2025, the number of paying enterprise clients grew by 13.3% year-on-year, reaching 6.8 million, with an increase in the payment rate for paying users both year-on-year and quarter-on-quarter [2] Group 3: User Growth with Controlled Marketing - The company achieved user growth while maintaining restrained marketing expenditures, with R&D expense ratio decreasing by 5.42 percentage points and sales expense ratio down by 9.13 percentage points year-on-year. The cumulative new users from January to October exceeded 40 million, indicating strong brand recognition and high user stickiness on the platform. The financial report reflects that the recovery in demand has driven profit growth, with future contributions expected from AI in matching efficiency and new product dimensions [3]

Investment Rating - The report maintains a "Positive" investment rating for the social services industry, indicating an expectation of returns exceeding the market benchmark by over 5% [5]. Core Insights - The social services sector is showing resilience during the off-peak season, supported by fundamental data and a shift in funding styles, creating conditions for relative returns across industries [4]. - Key areas of focus include mid-cap blue-chip characteristics, growth potential, and recovery prospects in performance, particularly in OTA, hotels, human resources, and select dining and scenic spots [4]. Summary by Sections Hotels - The hotel sector demonstrates strong fundamentals with a recovery in performance. Huazhu reported a revenue of 7 billion yuan for Q3 2025, a year-on-year increase of 8.1%, surpassing previous growth guidance [8]. - The national hotel RevPAR turned positive in October 2025, showing a year-on-year increase of 2.2%, indicating a stable volume and rising prices [8]. Scenic Spots - The demand for scenic spots remains robust due to the autumn holiday and the upcoming winter season, with double-digit growth in visitor numbers reported [8]. - For instance, the Jianmen Pass scenic area saw a 30% increase in visitors during the autumn holiday, and hotel bookings in Zhejiang rose by 68% [8]. Duty-Free - The duty-free shopping scene in Hainan is recovering, with sales reaching 506 million yuan from November 1-7, 2025, a year-on-year increase of 34.86% [8]. - This recovery is attributed to low base effects, new policies, and promotional activities, alongside a shift in consumer behavior due to international travel restrictions [8]. OTA (Online Travel Agencies) - Ctrip's Q3 2025 report showed a net operating income of 18.3 billion yuan, reflecting a year-on-year increase of approximately 16% [8]. - The international OTA orders grew by about 60%, with inbound travel orders doubling, indicating a strong recovery in domestic travel demand [8].

Core Insights - BOSS Zhipin reported Q3 2025 revenue of 2.16 billion yuan, a year-on-year increase of 13.2%, with net profit reaching 775 million yuan, driven by accelerated AI integration in recruitment and job-seeking processes [1] - The company has solidified its leading position in the market, with analysts recommending attention to the recovery of recruitment demand and advancements in AI applications [1][2] Financial Performance - Q3 revenue was 2.16 billion yuan, up 13.2% year-on-year, and net profit was 775 million yuan [1] - R&D expenditure reached 408 million yuan, surpassing sales and marketing expenses, which decreased by 24.6% to 394 million yuan [2] User Growth and Engagement - Average monthly active users (MAU) reached 63.8 million, a 10% increase year-on-year, with over 40 million new users added from January to October 2025 [2] - BOSS Zhipin's download volume ranks among the top three globally, significantly outpacing similar platforms in Europe and the US [2] AI Integration and Efficiency - AI technology is reshaping the recruitment industry, with 67% of organizations using AI in hiring, a 189% increase since 2022 [4] - AI tools can reduce recruitment time and costs by 33%, achieving an average ROI of 340% within 18 months [4] - AI capabilities have been integrated into product features, enhancing efficiency for both job seekers and recruiters [5] Job Seeker Support - The "AI Job Assistant" has become a frequently used tool, providing job recommendations, answering queries, and offering resume optimization suggestions [6] - AI features like "AI Mock Interviews" help alleviate the anxiety of inexperienced job seekers [6] Recruiter Support - AI tools such as "AI Fast Recruitment" and "AI Communication Assistant" streamline the recruitment process for small and medium enterprises [6] - The "AI Interview Summary" function provides real-time analysis and summaries of interview discussions, improving decision-making efficiency [6] Market Trends and Opportunities - The rise of the blue-collar market has opened new growth avenues, with blue-collar income reaching a historical high in Q3 [8] - The demand for high-end talent in AI and related fields has surged, with significant growth in positions like AI product managers and algorithm developers [8] Capital Market Response - BOSS Zhipin's long-term value has been recognized by major international funds, with institutions like Capital Group and BlackRock choosing to increase their holdings [9] - Future enhancements in matching efficiency and user engagement are anticipated as AI capabilities evolve [9]

Group 1 - The employment market is showing positive changes with a steady recovery in recruitment demand and increased confidence in hiring [1][2] - The macroeconomic environment is improving, providing a solid foundation for the recovery of the employment market, with the national urban survey unemployment rate at 5.1% in October, down by 0.1 percentage points from the previous month [2] - Data from recruitment platforms indicates a year-on-year increase in new job postings and companies hiring, with BOSS Zhipin reporting a 13.3% year-on-year growth in paid enterprise clients, reaching 6.8 million by the end of September [3] Group 2 - The demand for jobs is experiencing structural changes driven by the growth of new industries such as artificial intelligence, robotics, and new energy vehicles, which are injecting new momentum into economic development [4] - There is a significant increase in demand for AI-related positions, with roles such as AI product managers and algorithm engineers seeing substantial year-on-year growth [4] - Local industries in lower-tier cities are expanding rapidly, leading to increased demand for jobs in sectors like home services, catering, and retail [4] Group 3 - Online recruitment platforms are enhancing their service capabilities, which helps stabilize the employment market, with BOSS Zhipin facilitating 1.84 billion interactions between job seekers and employers in 2024 [5] - The introduction of AI tools for job matching and resume optimization is expected to shorten job search cycles and improve recruitment efficiency [5] - Enhanced safety measures through AI in recruitment processes are reducing risks associated with fraudulent job postings, thereby increasing trust in online recruitment channels [5] Group 4 - BOSS Zhipin reported a net profit of 775 million yuan in the third quarter, a 67.2% year-on-year increase, attributed to effective cost control and a 24.6% reduction in sales and marketing expenses [6] - The improvement in profitability is linked to the application of AI in operational management, which has enhanced service quality while increasing operational efficiency [6] - The overall improvement in operational efficiency and technological advancement is expected to strengthen the role of recruitment platforms in supporting employment stability [6]

Core Viewpoint - BOSS Zhipin has successfully navigated challenges in the recruitment platform industry, achieving significant growth under the leadership of Zhao Peng, who has implemented innovative marketing strategies and technology integration to enhance user experience and operational efficiency [1][2][8]. Financial Performance - For the third quarter of 2025, BOSS Zhipin reported revenue of 21.63 billion yuan, a year-on-year increase of 13.2% [9][10]. - The net profit for the same period was 7.75 billion yuan, reflecting a 67.2% year-on-year growth, while adjusted net profit reached 9.92 billion yuan, up 34.2% [9][10]. - The number of paid enterprise clients reached 6.8 million, marking a 13.3% increase year-on-year [10]. Marketing Strategy - Zhao Peng's decision to invest over 100 million yuan in advertising during the 2018 World Cup significantly boosted BOSS Zhipin's user base, propelling the company into the top three in the industry [5][8]. - The marketing campaign, despite being criticized as "brainwashing," effectively doubled the user count and established a strong market presence [5][6]. User Engagement and Technology Integration - BOSS Zhipin has initiated the "Conch Plan" to improve the job-seeking environment, particularly for blue-collar workers, and has seen a historical high in revenue contribution from this segment [8]. - The company has integrated AI technology into its processes, enhancing user interaction and operational efficiency, with AI job assistants launched in the third quarter [11][12]. Challenges and Complaints - Despite the growth in paid clients, BOSS Zhipin faces challenges regarding service quality, with over 7,136 complaints reported, primarily concerning customer service and refund issues [11]. - The company is addressing the balance between scaling operations and maintaining service quality, with plans to enhance the review process through AI [11][12].