Investment Rating - The report maintains a "Buy" rating for the company with a target price of $23.11 [6][4]. Core Insights - The company reported Q1 2025 revenue of 1.923 billion RMB, slightly exceeding the forecast of 1.91 billion RMB, with a year-over-year growth of 12.9%. Adjusted net profit reached 692 million RMB, surpassing the prediction of 617 million RMB, reflecting a year-over-year increase of 76.2% [1][2]. - The recruitment demand is gradually recovering, with the blue-collar segment accounting for over 45% of new users, contributing to an increase in revenue share to over 39% [2]. - The company has successfully reduced its expense ratio, with a gross margin of 83.8% and a significant decrease in sales expense ratio by 8.5 percentage points year-over-year [3]. Revenue and Profit Forecast - The revenue forecast for FY25-FY27 has been slightly revised upwards to 8.18 billion RMB, 9.38 billion RMB, and 10.67 billion RMB respectively, with adjusted net profit estimates increased to 3.32 billion RMB, 3.5 billion RMB, and 3.96 billion RMB [4][11]. - The company expects Q2 2025 revenue to be between 2.05 billion RMB and 2.08 billion RMB, indicating a year-over-year growth of 6.9% to 8.5% [2]. Financial Metrics - The company achieved an adjusted operating profit of 692 million RMB in Q1 2025, corresponding to a profit margin of 36%, which is better than expected [3]. - The report projects an adjusted operating profit of 3.07 billion RMB for the year 2025 [3][12]. Valuation - Based on the DCF valuation method, the target price is set at $23.11, reflecting a perpetual growth assumption of 3% and a WACC of 8.95% [4][13].

Core Insights - BOSS Zhipin continues to expand its user base and revenue, particularly in the blue-collar market, which has become a significant growth driver for the company [1][2][4] Group 1: Financial Performance - In Q1 2025, BOSS Zhipin reported revenue of 1.923 billion yuan, with blue-collar contributions accounting for 39% of total revenue [1] - The net profit for Q1 2025 reached 512 million yuan, indicating improved profitability [1] - Marketing expenses decreased by 15% year-on-year, while the average monthly active users (MAU) reached 57.6 million [1] Group 2: User Growth and Market Expansion - The proportion of blue-collar users on the platform increased to 34.8% in 2024, up over 5 percentage points from 2021 [2] - The number of blue-collar users grew from 28.5 million in 2021 to 73.7 million in 2024, with a compound annual growth rate (CAGR) of 36.7% [2] - The average number of new job postings in the blue-collar sector increased by 17% year-on-year from January to April 2025 [4] Group 3: Market Trends and Opportunities - The blue-collar online recruitment market in China is projected to reach 152.4 billion yuan by 2026, driven by urbanization and the increasing preference for online job platforms among younger blue-collar workers [5][6] - The demand for blue-collar positions in the service industry, particularly in sectors like catering and retail, has shown a consistent recovery since April 2025 [4] - BOSS Zhipin's "Sea Conch Preferred" program aims to improve job authenticity and attract more users by verifying job postings [5] Group 4: Product Innovations - The company launched the "Rapid Interview" feature in Q1 2025 to streamline the recruitment process for blue-collar jobs, significantly reducing the time from initial contact to interview [6] - BOSS Zhipin's product advantages, such as flexible payment methods and direct communication features, have made it popular among small and medium-sized enterprises in the blue-collar sector [6]

Core Insights - Kanzhun reported a 13% year-over-year revenue increase to 1.92 billion yuan and a 112% rise in GAAP net income to 512 million yuan for Q1 2025 [1] - The company achieved an adjusted operating margin of 36%, up 13 percentage points from 23% in the same period last year, indicating strong operational leverage and strategic execution [3] Financial Performance - Adjusted operating income reached 690 million yuan, supported by an 8% reduction in total operating costs and a decline in share-based compensation expenses for three consecutive quarters [2] - Sales and marketing expenses were reduced by 15% year over year, contributing to improved margins [2] User Base and Market Position - The blue-collar segment contributed over 39% to revenue, with tier 3-and-below cities accounting for more than 23% of revenue, indicating a diversified user base [4] - The company has limited exposure to export-oriented enterprises, which mitigates risks from global tariff fluctuations [5] AI Integration and Productivity - Kanzhun has invested over 1 billion yuan in AI infrastructure since 2023, with AI-driven recruitment tools managing over 9 million candidate conversations during beta testing [6] - Despite the integration of AI, the competitive landscape in the human capital industry remains stable, with no significant disruptions observed [7] Future Outlook - Management projects Q2 revenue between 2.05 billion yuan and 2.08 billion yuan, reflecting a year-over-year growth of 7.0% to 8.5% [8] - The company reaffirmed its full-year non-GAAP operating profit target of 3 billion yuan and has robust cash reserves exceeding $2 billion [8]

Financial Performance - Total revenues for the first quarter of 2025 were RMB1,923.3 million (US$265.0 million), representing a year-on-year increase of 12.9% from RMB1,703.8 million in the same quarter of 2024[6] - Net income for the first quarter of 2025 was RMB512.1 million (US$70.6 million), an increase of 111.9% from RMB241.7 million in the same quarter of 2024[11] - Adjusted net income for the first quarter of 2025 was RMB763.9 million (US$105.3 million), an increase of 43.9% from RMB530.7 million in the same quarter of 2024[11] - Income from operations for the first quarter of 2025 was RMB439.8 million (US$60.6 million), an increase of 324.5% from RMB103.6 million in the same quarter of 2024[9] - Adjusted income from operations for the first quarter of 2025 was RMB691.5 million (US$95.3 million), an increase of 76.1% from RMB392.6 million in the same quarter of 2024[9] - Net income attributable to ordinary shareholders of KANZHUN LIMITED for Q1 2025 was RMB 518,134, a significant increase of 111.5% from RMB 244,951 in Q1 2024[28] - Adjusted net income per ordinary share attributable to ordinary shareholders increased to RMB 0.88 for Q1 2025, up from RMB 0.61 in Q1 2024, reflecting a growth of 44.3%[34] User Metrics - Average monthly active users for the first quarter of 2025 were 57.6 million, an increase of 23.6% from 46.6 million in the same quarter of 2024[6] - The number of paid enterprise customers reached 6.4 million in the twelve months ended March 31, 2025, up 12.3% from 5.7 million in the previous year[6] Revenue Forecast - The company expects total revenues for the second quarter of 2025 to be between RMB2.05 billion and RMB2.08 billion, representing a year-on-year increase of 6.9% to 8.5%[17] Operating Costs and Expenses - Total operating costs and expenses were RMB1,491.1 million (US$205.5 million) for the first quarter of 2025, a decrease of 7.5% from RMB1,612.8 million in the same quarter of 2024[8] - Research and development expenses decreased to RMB 423,568 in Q1 2025 from RMB 467,569 in Q1 2024, a reduction of 9.4%[28] Cash and Assets - The balance of cash and cash equivalents as of March 31, 2025, was RMB14,785.2 million (US$2,037.5 million)[15] - Cash and cash equivalents at the end of Q1 2025 were RMB 2,790,420, an increase from RMB 2,747,166 at the end of Q1 2024[32] - Total current assets as of March 31, 2025, were RMB 15,681,004, up from RMB 15,100,383 as of December 31, 2024, indicating a growth of 3.8%[30] - Total assets increased to RMB 20,387,869 as of March 31, 2025, compared to RMB 19,310,672 as of December 31, 2024, reflecting a growth of 5.6%[30] Cash Flow - Net cash provided by operating activities for Q1 2025 was RMB 1,003,109, an increase of 10.8% from RMB 905,541 in Q1 2024[32] Share Information - The weighted average number of ordinary shares used in computing net income per share was 870,991,355 for Q1 2025, slightly down from 880,732,849 in Q1 2024[34]

Financial Performance - The company achieved GAAP revenue of RMB 1.92 billion, reflecting a 13% year-on-year increase [7] - Net income reached RMB 510 million, representing a 112% year-on-year growth [7] - Adjusted operating income was RMB 690 million, with an adjusted operating margin of 36%, up 13 percentage points year-on-year [7][28] - Total operating costs decreased by 8% year-on-year to RMB 1.5 billion, with share-based compensation expenses down by 13% year-on-year [27][29] - Net cash provided by operating activities was RMB 1 billion, up 11% year-on-year [30] Business Line Performance - The average verified monthly active users on the Foss Shipping app reached 57.56 million, up 24% year-on-year [10] - Revenue from enterprises with fewer than 100 employees hit a record high contribution for the period, driven by the growth of smaller-sized companies [11] - Blue collar new users accounted for over 45% of total users, driving their share of revenue up to more than 39% [11] Market Data - Average new job postings grew 17% year-on-year from January to April, with total paid enterprise customers increasing to 6.38 million, up 2012% year-on-year [12] - Recruitment demand for blue collar workers has been steadily rebounding since April, with manufacturing recruitment showing resilience despite tariff impacts [13] Company Strategy and Industry Competition - The company is focused on driving profitability and has made solid progress in AI applications to enhance operational efficiency [6][14] - Management remains cautious about the competitive landscape, noting that while AI technology is important, no revolutionary changes have been observed yet [56] Management Commentary on Operating Environment and Future Outlook - Management noted that the impact of the tariff war on business has not intensified, and hiring demand has shown a recovery trend since the Chinese New Year [6][12] - The company is optimistic about the year ahead, with plans to continue focusing on high-impact priorities to enhance operational certainty [7][23] Other Important Information - The company has a strong cash position of RMB 14.8 billion as of March 31, 2025, providing financial flexibility for growth initiatives [31] - For Q2 2025, the company expects total revenues to be between RMB 2.05 billion and RMB 2.08 billion, representing a year-on-year increase of 7% to 8% [31] Q&A Session Summary Question: How has hiring demand evolved since the start of the tariff war? - Management indicated that the overall supply and demand relationship has continued to improve, with new job postings maintaining good growth rates [35][36] Question: What feedback has been received regarding AI features, and what are the plans for monetization? - Management reported positive feedback from AI product testing, with plans for gradual monetization as efficiency improvements are observed [41][44] Question: Are there any expected changes in the competitive landscape due to AI adoption? - Management expressed a conservative view, noting that while AI is important, no significant changes have been observed in the competitive landscape yet [54][56]

Core Insights - BOSS Zhipin reported a revenue of 1.923 billion yuan and a net profit of 512 million yuan for Q1 2025, continuing to expand its user base and improve operational efficiency [1][4] - The company focused on increasing profitability while maintaining technological investments, which contributed to its growth [1][4] Revenue Growth - Revenue for Q1 2025 increased by 12.9% year-on-year, driven by user growth and improved penetration rates [2][4] - The number of paid enterprise clients reached 6.4 million, up 12.3% year-on-year [1][2] User Demographics - Over 45% of new users in Q1 2025 were from the blue-collar segment, with blue-collar revenue contributing over 39% of total revenue [2] - Revenue from third-tier cities and below increased by 3 percentage points to over 23% year-on-year [2] Cost Management - Sales and marketing expenses decreased by 15% year-on-year, while R&D expenses fell by 9% and general and administrative expenses decreased by 2% [4][6] - The company achieved a healthy profit growth with a net profit increase of 111.9% year-on-year [4] Market Outlook - The human resources service market is expected to maintain strong momentum in the medium to long term, with a recovery in recruitment demand observed since late 2024 [5][6] - BOSS Zhipin's stock outperformed the Nasdaq China Golden Dragon Index, rising over 35% during a period when the index fell more than 20% [5][6] AI Integration - BOSS Zhipin is leveraging AI technologies to enhance user experience and operational efficiency, with AI tools being applied in various business scenarios [7][8] - The company has expanded its AI user testing scale and penetration, improving job matching accuracy and providing personalized services for job seekers [8][9] Service Enhancements - The company continues to optimize job search experiences for blue-collar workers and students, with features like "map job search" and "rapid interview scheduling" [9] - During the spring recruitment season, BOSS Zhipin provided tens of thousands of job opportunities for students, utilizing AI tools to recommend jobs and generate customized job reports [9]

Financial Performance - The company achieved GAAP revenue of RMB 1.92 billion, reflecting a 13% year-on-year increase [6][25] - Net income reached RMB 510 million, representing a 112% year-on-year growth [6] - Adjusted operating income was RMB 690 million, with an adjusted operating margin of 36%, up 13 percentage points year-on-year [6][27] - Total operating costs decreased by 8% year-on-year to RMB 1.5 billion, with share-based compensation expenses down by 13% year-on-year [27][28] - Net cash provided by operating activities was RMB 1 billion, up 11% year-on-year [30] Business Line Performance - The average verified monthly active users on the Foss Shipping app reached 57.56 million, up 24% year-on-year [9] - Revenue from enterprises with fewer than 100 employees hit a record high contribution for the period, driven by the growth of smaller-sized companies [11] - Blue-collar new users accounted for over 45% of total users, driving their share of revenue up to more than 39% [11] Market Data - Average new job postings grew 17% year-on-year from January to April, indicating a recovery in hiring demand [12] - Recruitment demand for blue-collar workers has been steadily rebounding since April, with manufacturing recruitment showing resilience [13] Company Strategy and Industry Competition - The company is focused on driving profitability and has made solid progress in AI applications to enhance operational efficiency [5][14] - Management remains cautious about the broad deployment of AI in recruitment, emphasizing the importance of human recruiters [17][53] - The competitive landscape is stable, with no revolutionary changes observed in the industry due to current AI technologies [53] Management Commentary on Operating Environment and Future Outlook - Management noted that the impact of the ongoing tariff war on business has not intensified, with hiring demand showing a recovery trend [5][12] - The company is optimistic about the year ahead, expecting total revenues for Q2 2025 to be between RMB 2.05 billion and RMB 2.08 billion, representing a year-on-year increase of 7% to 8% [31] Other Important Information - The company has a strong cash position of RMB 14.8 billion as of March 31, 2025, providing financial flexibility for growth initiatives [30] - The company is committed to shareholder returns, with ongoing share repurchase programs and assessments for other measures to enhance returns [49] Q&A Session Summary Question: How has hiring demand evolved since the start of the tariff war? - Management indicated that the impact of the tariff war on supply and demand has been limited, with a recovery trend in recruitment demand observed [35][36] Question: What feedback has been received regarding AI features and monetization plans? - Management reported positive feedback from AI product testing, with plans for gradual monetization as efficiency improvements are noted [41][44] Question: How does management view the competitive landscape with AI adoption? - Management expressed a conservative view, noting that while AI is important, no revolutionary changes have been observed in the competitive landscape yet [52][53]

Core Insights - BOSS Zhipin-W (02076) reported a strong performance in Q1 2025, with total revenue of 1.923 billion RMB, a year-on-year increase of 12.88% [1] - The net profit attributable to ordinary shareholders reached 518 million RMB, reflecting a significant year-on-year growth of 111.53% [1] - The basic net profit per share was 0.59 RMB [1] User Engagement - The average monthly active users for Q1 2025 were 57.6 million, up 23.6% from 46.6 million in the same quarter of 2024 [2] - The peak monthly active users reached nearly 65 million after the Spring Festival, indicating strong brand appeal and user retention [2] Strategic Focus - The company’s CEO highlighted the effectiveness of its strategy focused on core business, technological innovation, and high-quality growth [2] - The CFO noted an adjusted operating profit margin of 36.0%, a year-on-year increase of 13 percentage points, attributed to efficient operational leverage and strong cost control [2] Customer Growth - The number of paying enterprise clients increased by 12.3% year-on-year to 6.4 million as of March 31, 2025, driven by user penetration strategies [2]

Core Viewpoint - KANZHUN LIMITED has appointed Ms. Hongyu Liu as an independent non-executive director, which is expected to enhance the company's development through her extensive financial expertise [1][4]. Company Overview - KANZHUN LIMITED operates BOSS Zhipin, a leading online recruitment platform in China, facilitating efficient connections between job seekers and enterprises through a highly interactive mobile app [6]. New Appointment Details - Ms. Hongyu Liu, aged 52, has over 25 years of experience in the financial services industry and currently serves as a managing director at Intermediate Capital Asia Pacific Limited since 2016 [2]. - Her previous roles include principal at TPG Capital and vice president at Lazard China Limited, along with over seven years at JP Morgan Chase [2]. - Ms. Liu holds a Bachelor of Arts in finance from Renmin University of China, a Master of Arts in Law and Diplomacy from The Fletcher School of Tufts University, and an MBA from Tuck School of Business at Dartmouth College [3]. - She is a Chartered Financial Analyst and licensed under the Securities and Futures Ordinance in Hong Kong for regulated activities [3].

Company Overview - KANZHUN LIMITED operates the leading online recruitment platform BOSS Zhipin in China, connecting job seekers and enterprise users through a highly interactive mobile app that promotes two-way communication and intelligent recommendations [5]. Annual General Meeting (AGM) - The Company will hold its annual general meeting of shareholders on June 27, 2025, at 3 p.m. Beijing time, to consider proposed resolutions [1]. - Shareholders and holders of American depositary shares (ADSs) are encouraged to vote in favor of the proposed resolutions as recommended by the board of directors [1]. Voting Rights - Holders of record of ordinary shares and ADSs as of May 22, 2025, are entitled to notice of, attend, and vote at the AGM [2]. Financial Reporting - The Company has filed its annual report on Form 20-F, including audited financial statements for the fiscal year ended December 31, 2024, with the U.S. Securities and Exchange Commission (SEC) [3].