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]

Customer Growth - Total paid enterprise customers increased by 22.4% to 6.0 million for the twelve months ended September 30, 2024, compared to 4.9 million for the same period in 2023[4] - Average monthly active users (MAU) grew by 30.0% to 58.0 million in Q3 2024, up from 44.6 million in Q3 2023[4] Financial Performance - Revenues for Q3 2024 were RMB1,911.6 million (US$272.4 million), representing a 19.0% increase from RMB1,606.6 million in Q3 2023[5] - Net income for Q3 2024 was RMB463.8 million (US$66.1 million), an increase of 8.9% from RMB425.7 million in Q3 2023[6] - Adjusted income from operations for Q3 2024 was RMB605.3 million (US$86.2 million), reflecting a 10.2% increase from RMB549.4 million in Q3 2023[15] - Revenues from online recruitment services to enterprise customers were RMB1,889.1 million (US$269.2 million) in Q3 2024, up 18.7% from RMB1,591.5 million in Q3 2023[9] - Total revenues for the three months ended September 30, 2024, were RMB 1,911,575, representing a 19% increase from RMB 1,606,636 in the same period of 2023[34] - Online recruitment services to enterprise customers generated RMB 1,889,102 in revenue for the three months ended September 30, 2024, up from RMB 1,591,500, reflecting a growth of 19%[34] - Net income attributable to ordinary shareholders for the nine months ended September 30, 2024, was RMB 1,122,801, compared to RMB 767,977 for the same period in 2023, marking a 46% increase[34] Cash Flow and Assets - The company reported a net cash provided by operating activities of RMB 812,290 for the three months ended September 30, 2024[40] - The balance of cash and cash equivalents as of September 30, 2024, was RMB14,599.5 million (US$2,080.4 million)[20] - Cash and cash equivalents at the end of the period were RMB 2,816,158, an increase from RMB 2,444,620 at the beginning of the period[40] - Total current assets decreased to RMB 13,373,037 as of September 30, 2024, from RMB 15,147,115 as of December 31, 2023[38] Expenses and Liabilities - Research and development expenses increased by 12.0% to RMB464.2 million (US$66.1 million) in Q3 2024, driven by higher technology investments[14] - Research and development expenses for the three months ended September 30, 2024, were RMB 464,151, up from RMB 414,429 in the same period of 2023, indicating a 12% increase[34] - The company’s total liabilities as of September 30, 2024, were RMB 4,510,855, compared to RMB 4,179,665 as of December 31, 2023[38] Shareholder Information - A new share repurchase program was authorized in August 2024, allowing the company to repurchase up to US$150 million of its shares[21] - Basic net income per ordinary share attributable to ordinary shareholders for the nine months ended September 30, 2024, was RMB 1.28, compared to RMB 0.88 for the same period in 2023, reflecting a 45% increase[34] - The weighted average number of ordinary shares used in computing net income per share for the nine months ended September 30, 2024, was 1,135,056[34] Future Outlook - The company expects total revenues for Q4 2024 to be between RMB1.795 billion and RMB1.81 billion, indicating a year-on-year increase of 13.6% to 14.6%[22] - The company anticipates continued growth in user data and market expansion strategies in the upcoming quarters[42] - New product and technology developments are expected to contribute positively to future revenue streams and market positioning[42]

Revenue and Profit Growth - Revenue for Q3 2024 was RMB 1,911.6 million (USD 272.4 million), a 19.0% increase from RMB 1,606.6 million in Q3 2023[8] - Operating profit for Q3 2024 was RMB 330.2 million (USD 47.1 million), a 26.5% increase from RMB 261.0 million in Q3 2023[8] - Net profit for Q3 2024 was RMB 463.8 million (USD 66.1 million), an 8.9% increase from RMB 425.7 million in Q3 2023[8] - Online recruitment service revenue from enterprise clients in Q3 2024 was RMB 1,889.1 million (USD 269.2 million), an 18.7% increase from RMB 1,591.5 million in Q3 2023[11] - Other service revenue (primarily paid value-added services for job seekers) in Q3 2024 was RMB 22.5 million (USD 3.2 million), a 49.0% increase from RMB 15.1 million in Q3 2023[11] - Operating profit for Q3 2024 was RMB 330.2 million (USD 47.1 million), a 26.5% increase compared to RMB 261.0 million in Q3 2023[14] - Adjusted operating profit for Q3 2024 was RMB 605.3 million (USD 86.2 million), a 10.2% increase compared to RMB 549.4 million in Q3 2023[14] - Net profit for Q3 2024 was RMB 463.8 million (USD 66.1 million), an 8.9% increase compared to RMB 425.7 million in Q3 2023[16] - Adjusted net profit for Q3 2024 was RMB 738.9 million (USD 105.3 million), a 3.5% increase compared to RMB 714.1 million in Q3 2023[16] - Total revenue for the three months ended September 30, 2024, reached RMB 1,911,575 thousand (USD 272,397 thousand), a 19% increase compared to the same period in 2023[31] - Net profit attributable to ordinary shareholders of KanZhun Ltd. for the nine months ended September 30, 2024, was RMB 1,135,056 thousand (USD 161,744 thousand), a 47.8% increase year-over-year[31] - Operating profit for the three months ended September 30, 2024, was RMB 330,183 thousand (USD 47,051 thousand), a 26.5% increase compared to the same period in 2023[31] - Operating profit for the three months ended September 30, 2024, was RMB 330,183 thousand (USD 47,051 thousand), an increase from RMB 260,987 thousand in the same period of 2023[43] - Adjusted operating profit for the nine months ended September 30, 2024, reached RMB 1,657,872 thousand (USD 236,244 thousand), up from RMB 1,118,280 thousand in the same period of 2023[43] - Net profit for the three months ended September 30, 2024, was RMB 463,827 thousand (USD 66,095 thousand), compared to RMB 425,717 thousand in the same period of 2023[43] - Adjusted net profit for the nine months ended September 30, 2024, was RMB 1,988,288 thousand (USD 283,328 thousand), up from RMB 1,527,538 thousand in the same period of 2023[43] User and Customer Growth - Total paying enterprise customers for the twelve months ended September 30, 2024, reached 6.0 million, a 22.4% increase from 4.9 million in the same period last year[8] - Average monthly active users (MAU) for Q3 2024 were 58.0 million, a 30.0% increase from 44.6 million in Q3 2023[8] Expenses and Costs - Total operating costs and expenses for Q3 2024 were RMB 1,586.9 million (USD 226.1 million), a 16.8% increase from RMB 1,358.7 million in Q3 2023[12] - Marketing expenses for Q3 2024 were RMB 522.3 million (USD 74.4 million), a 14.2% increase from RMB 457.3 million in Q3 2023, driven by advertising costs during the 2024 Paris Olympics and 2024 UEFA European Championship[12] - R&D expenses for Q3 2024 were RMB 464.2 million (USD 66.1 million), a 12.0% increase from RMB 414.4 million in Q3 2023, due to increased technology investments[12] - Marketing expenses for the nine months ended September 30, 2024, were RMB 1,646,707 thousand (USD 234,654 thousand), a 5.7% increase year-over-year[31] - R&D expenses for the three months ended September 30, 2024, were RMB 464,151 thousand (USD 66,141 thousand), a 12% increase compared to the same period in 2023[31] Earnings Per Share and ADS - Basic and diluted earnings per ADS for Q3 2024 were RMB 1.06 (USD 0.15) and RMB 1.03 (USD 0.15), respectively, compared to RMB 0.98 and RMB 0.95 in Q3 2023[17] - Adjusted basic and diluted earnings per ADS for Q3 2024 were RMB 1.68 (USD 0.24) and RMB 1.64 (USD 0.23), respectively, compared to RMB 1.64 and RMB 1.59 in Q3 2023[17] - Basic earnings per share for the nine months ended September 30, 2024, were RMB 1.28 (USD 0.18), a 45.5% increase compared to the same period in 2023[31] - Basic adjusted net profit per share for the nine months ended September 30, 2024, was RMB 2.26 (USD 0.32), compared to RMB 1.76 in the same period of 2023[43] - Diluted adjusted net profit per share for the nine months ended September 30, 2024, was RMB 2.19 (USD 0.31), compared to RMB 1.69 in the same period of 2023[43] - Basic adjusted net profit per ADS for the nine months ended September 30, 2024, was RMB 4.52 (USD 0.64), compared to RMB 3.52 in the same period of 2023[43] - Diluted adjusted net profit per ADS for the nine months ended September 30, 2024, was RMB 4.38 (USD 0.62), compared to RMB 3.39 in the same period of 2023[43] Cash Flow and Financial Position - Net cash provided by operating activities for Q3 2024 was RMB 812.3 million (USD 115.8 million), remaining stable compared to RMB 812.6 million in Q3 2023[18] - Cash and cash equivalents, short-term time deposits, and short-term investments totaled RMB 14,599.5 million (USD 2,080.4 million) as of September 30, 2024[19] - Cash and cash equivalents as of September 30, 2024, stood at RMB 2,816,158 thousand (USD 401,299 thousand), a 13.9% increase from December 31, 2023[37] - Net cash provided by operating activities for the nine months ended September 30, 2024, was RMB 2,586,387 thousand (USD 368,557 thousand), a 22% increase year-over-year[40] - Total assets as of September 30, 2024, were RMB 18,813,418 thousand (USD 2,680,890 thousand), a 4.9% increase from December 31, 2023[37] - Total liabilities as of September 30, 2024, were RMB 4,179,665 thousand (USD 595,598 thousand), a 7.3% decrease from December 31, 2023[37] Share Repurchase and Future Outlook - The company approved a new share repurchase plan in August 2024, allowing the repurchase of up to USD 150 million in shares, in addition to the existing plan allowing up to USD 200 million in repurchases[20] - The company expects Q4 2024 total revenue to be between RMB 1.795 billion and RMB 1.81 billion, representing a year-over-year increase of 13.6% to 14.6%[21]

Core Viewpoint - KANZHUN LIMITED, a leading online recruitment platform in China, reported strong financial results for the third quarter of 2024, demonstrating resilience in a challenging recruitment market with significant growth in user base and revenues [1][4]. Financial Performance - Total paid enterprise customers increased by 22.4% to 6.0 million from 4.9 million year-on-year [3]. - Average monthly active users (MAU) rose by 30.0% to 58.0 million compared to 44.6 million in the same quarter of 2023 [3]. - Revenues for Q3 2024 were RMB1,911.6 million (US$272.4 million), up 19.0% from RMB1,606.6 million in Q3 2023 [3][5]. - Income from operations increased by 26.5% to RMB330.2 million (US$47.1 million) from RMB261.0 million year-on-year [3][10]. - Net income for Q3 2024 was RMB463.8 million (US$66.1 million), an increase of 8.9% from RMB425.7 million in Q3 2023 [3][11]. Revenue Breakdown - Revenues from online recruitment services to enterprise customers were RMB1,889.1 million (US$269.2 million), an increase of 18.7% from RMB1,591.5 million in Q3 2023, driven by growth in paid enterprise users [6]. - Revenues from other services, mainly paid value-added services for job seekers, rose by 49.0% to RMB22.5 million (US$3.2 million) [6]. Operating Costs and Expenses - Total operating costs and expenses were RMB1,586.9 million (US$226.1 million), up 16.8% from RMB1,358.7 million in Q3 2023 [7]. - Cost of revenues increased by 17.4% to RMB314.0 million (US$44.7 million) due to higher server, bandwidth, and employee-related costs [9]. - Sales and marketing expenses rose by 14.2% to RMB522.3 million (US$74.4 million), attributed to increased advertising during major events [9]. Shareholder Returns and Outlook - The company has initiated a new share repurchase program, authorizing up to US$150 million for a 12-month period, in addition to a previous program of US$200 million [16]. - For Q4 2024, the company expects total revenues to be between RMB1.795 billion and RMB1.81 billion, reflecting a year-on-year increase of 13.6% to 14.6% [18].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is expected to see revenue of 1.919 billion yuan in Q3 2024, representing a year-on-year growth of 19% [1] - Cash collections are projected to be 1.806 billion yuan, a 10% increase year-on-year [1] - Non-GAAP operating net profit is anticipated to reach 608 million yuan, reflecting a 13% year-on-year growth [1] - The company is facing weak B-end recruitment demand due to macroeconomic factors, impacting overall revenue growth [2] - Despite the challenges, the company maintains a competitive advantage and is expected to achieve its annual profit targets through effective cost control [2] - The long-term development outlook remains positive, supported by share buybacks to enhance shareholder returns [3] Financial Forecasts - Total revenue is projected to grow from 5.952 billion yuan in 2023 to 10.101 billion yuan in 2026, with year-on-year growth rates of 32%, 23%, 13%, and 22% respectively [1][8] - Non-GAAP net profit is expected to increase from 2.156 billion yuan in 2024 to 4.141 billion yuan in 2026, with corresponding growth rates of 32%, 42%, and 52% [1][8] - The adjusted earnings per share (EPS) is forecasted to rise from 4.79 yuan in 2024 to 9.20 yuan in 2026 [1][8] - The company’s Non-GAAP PE ratios are projected to be 21.06, 17.15, and 14.15 for 2024, 2025, and 2026 respectively [3][8]

Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [5][13]. Core Insights - The macroeconomic environment is experiencing a mild recovery, but corporate payment and recruitment willingness remain low. The company is expected to see a cash collection growth of approximately 10% year-on-year in Q3 2024, slightly below previous expectations of 17.8% [2][10]. - Revenue growth for Q3 2024 is projected at around 14%, also lower than the earlier forecast of 19.2%. Industries such as import-export, manufacturing, and transportation are performing relatively well, while retail-related services and the catering industry are under pressure [2][10]. - The company is focusing on cost control and expects stable profitability despite a challenging operating environment. Marketing efforts will be more targeted and cautious, especially after a one-time brand investment during the Olympics in 2024 [3][11]. - The company has shown confidence in its medium-term prospects by repurchasing over 6.2 million shares in November, totaling more than 300 million yuan, and has repurchased approximately 28.2 million shares this year, amounting to over 1.4 billion yuan, representing 3% of its total share capital [3][12]. Financial Forecasts - Revenue forecasts for 2024-2026 have been revised down to 7.24 billion, 8.05 billion, and 9.56 billion yuan, reflecting a decrease of 3%, 18%, and 18% respectively. The downward revision is attributed to overly optimistic previous profit forecasts and the need for macroeconomic policies to take effect [4][13]. - The adjusted net profit for 2024-2026 is maintained at 2.67 billion, 3.52 billion, and 4.31 billion yuan, with a compound annual growth rate (CAGR) of 28% [4][13]. - The company maintains a strong market position in user monthly activity, with fluctuations in operational data primarily driven by external macroeconomic conditions. The "direct chat + matching" business model remains highly competitive in the medium term [4][13].

BEIJING, Nov. 29, 2024 (GLOBE NEWSWIRE) -- KANZHUN LIMITED (“BOSS Zhipin” or the “Company”) (Nasdaq: BZ; HKEX: 2076), a leading online recruitment platform in China, today announced that it will report its unaudited consolidated results for the third quarter ended September 30, 2024, before the U.S. market opens on Wednesday, December 11, 2024. The Company will host a conference call on Wednesday, December 11, 2024 at 8:00PM Beijing Time (7:00AM U.S. Eastern Time) to discuss the results. Participants are re ...

BEIJING, Nov. 29, 2024 (GLOBE NEWSWIRE) -- KANZHUN LIMITED (“BOSS Zhipin” or the “Company”), a leading online recruitment platform in China, today announced that it has repurchased more than 6.2 million ordinary shares in November, valued at more than RMB300 million. Year-to-date, the Company has bought back approximately 28.2 million ordinary shares, amounting to more than RMB1.4 billion (USD200 million), representing 3% of total share capital. The Company announced a new share repurchase program effective ...