Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's performance in Q4 2024 slightly exceeded expectations, and there is optimism for a recovery in recruitment demand in 2025 [1][4] - The contribution of blue-collar, lower-tier cities, and small enterprises to revenue continues to rise, with strong growth in AI-related job recruitment [3] - The company is expected to achieve an adjusted operating profit of approximately 3 billion yuan in 2025, driven by improved customer acquisition efficiency and cost reductions through AI [3][4] Financial Performance Summary - Total revenue for 2023 is projected at 5,952 million yuan, with a year-on-year growth of 32%. This is expected to increase to 7,356 million yuan in 2024, representing a 24% growth [1] - The net profit attributable to the parent company is forecasted to be 1,099 million yuan in 2023, with a staggering year-on-year growth of 925%, and is expected to reach 1,585 million yuan in 2024, a 44% increase [1] - Non-GAAP net profit is anticipated to grow from 2,156 million yuan in 2023 to 2,711 million yuan in 2024, reflecting a 26% increase [1] - The adjusted EPS is projected to rise from 4.76 yuan in 2023 to 5.98 yuan in 2024 [1] Operational Insights - The company achieved a gross margin that remained stable year-on-year, with an adjusted sales expense ratio decreasing by 3.5 percentage points [4] - The adjusted operating profit for Q4 was 6.59 billion yuan, accounting for 36.1% of revenue, which is a 3 percentage point increase year-on-year [4] - The average monthly active users (MAU) for the BOSS Zhipin app reached 53 million in 2024, a 25% year-on-year increase [4][9] Market Position and Future Outlook - The company is expected to continue gaining market share in 2025, supported by increased brand recognition and a robust two-sided network effect [4] - The recruitment market is showing signs of recovery, with historical highs in active user numbers and job postings following the Spring Festival [4][9]

Investment Rating - The report maintains a "Strong Buy" rating for the company [3][6] Core Views - The company's revenue for the reporting period reached 1.82 billion yuan, a year-on-year increase of 15.4%, and the adjusted net profit attributable to the parent company was 730 million yuan, up 15.8%, aligning with market expectations [1][6] - The average monthly active users (MAU) reached 52.7 million, reflecting a robust growth of 27.9% year-on-year, with the total number of paying enterprise clients increasing by 17.3% to 6.1 million [1][6] - The company is expected to benefit from the recovery in the domestic recruitment market and has provided guidance for Q1 2025 revenue to be between 1.90 billion and 1.92 billion yuan, indicating a year-on-year growth of 11.5% to 12.7% [1][6] Financial Performance - The company achieved a gross margin of 82.8% in Q4 2024, with a slight improvement in expense ratios due to enhanced operational efficiency [1][6] - The projected revenue for 2025 is estimated at 8.484 billion yuan, with a year-on-year growth rate of 15% [2][8] - The adjusted net profit for 2025 is expected to be 2.077 billion yuan, reflecting a 31% increase compared to the previous year [2][8] User Growth and Market Position - The company continues to see strong user growth, with a significant increase in paying enterprise clients, which is a key driver for revenue [1][6] - The report emphasizes the company's commitment to leveraging technology to build competitive advantages, particularly through AI, which is expected to transform the recruitment industry [1][6] Valuation Metrics - The report projects a Non-GAAP net profit of 3.126 billion yuan for 2025, with corresponding price-to-earnings (PE) ratios of 19x, 17x, and 15x for the years 2025 to 2027 [2][6] - The company's return on equity (ROE) is expected to improve from 10.6% in 2024 to 14.2% by 2027 [9]

Group 1 - The article focuses on the investment service "Asia Value & Moat Stocks," which targets value investors looking for Asia-listed stocks with significant discrepancies between price and intrinsic value [1] - The service emphasizes deep value balance sheet bargains, such as net cash stocks and low price-to-book (P/B) stocks, as well as wide moat stocks that represent high-quality businesses [1] - The rating for Kanzhun (NASDAQ: BZ) has been upgraded from Hold to Buy, indicating a positive outlook based on the preview of its Q1'24 earnings [1]

证券研究报告 BOSS 直聘 (BZ US) 边际趋势良好，期待春招弹性 | 华泰研究 | | | 年报点评 | | --- | --- | --- | --- | | 2025 年 | 3 月 | 12 日│美国 | 互联网 | 24Q4 MAU 为 5270 万，同比增长 28%。春节后平台用户呈现较高活跃度， 根据 Questmobile 的数据 2 月最后一周，BOSS 直聘/前程无忧/智联招聘/ 猎聘周活跃用户分别增长 yoy+12.9%/10%/-2%/12%，公司在规模和增长上 依然领先同业。根据 Sensor Tower 的数据显示 1-2 月同比增长 13.2%，好 于此前 24 年 11-12 月的数据跟踪。考虑到边际招聘需求回暖，公司指引 25Q1 收入为 19~19.2 亿元（yoy+ 11.5% ~12.7%），彭博一致预期为 18.85 亿，略好于预期。 盈利兑现持续，25 年利润率持续提升 24FY 公司毛利率 83.1%(yoy+ 0.9pct)，销售费用率为 28.2%，一次性品牌宣 传 投 放 前 提 下 同 比 依 然 下 降 5.3pct 。 管 理 和 研 发 费 用 ...

Financial Performance - In Q4 2024, the company achieved GAAP revenue of RMB 1.82 billion, up 15% year-on-year, and adjusted net income of RMB 720 million, reflecting a 15% year-on-year growth [7][8] - For the full year 2024, GAAP revenue reached RMB 7.36 billion, up 24% year-on-year, with adjusted net income of RMB 2.71 billion, up 26% year-on-year [8][9] - Adjusted operating income for the full year was RMB 2.32 billion, rising by 41% year-on-year, with share-based compensation expenses as a percentage of revenue decreasing by 2.3 percentage points compared to 2023 [9][10] User and Business Metrics - Average verified monthly active users (MAU) on the BOSS Zhipin app increased by 28% year-on-year to 52.7 million in Q4 2024, with full-year MAU reaching 53 million, a 25.3% increase [8][11] - The company facilitated over 1.85 billion successful resume exchanges in 2024, indicating strong operational performance [11] - The revenue contribution from blue-collar segments grew to 38% in 2024, with the manufacturing sector showing the fastest growth rate [13][15] Market and Competitive Landscape - Recruitment demand from white-collar and large enterprises stabilized, with enterprises over 10,000 employees showing the fastest quarter-on-quarter revenue growth in Q4 [16] - The company noted a significant increase in recruitment demand for AI-related jobs, with average daily postings surging by over 60% year-on-year [28] Strategic Initiatives and AI Implementation - The company is focusing on enhancing user experience through continuous product and service optimization, particularly in blue-collar recruitment [15] - AI applications are being integrated into the recruitment process, with features like AI-powered job search and interview coaching being introduced [19][20] - The company has invested significantly in AI infrastructure, with plans to continue exploring AI applications and product development [56][58] Management Commentary on Future Outlook - Management expressed optimism about the recruitment market's recovery post-Chinese New Year, expecting Q1 2025 revenues to be between RMB 1.9 billion and RMB 1.92 billion, a year-on-year increase of 11.5% to 12.7% [40] - The company aims for a non-GAAP operating profit target of RMB 3 billion for 2025, which is 30% higher than the previous year [74] Other Important Information - The company repurchased approximately $229 million worth of shares in 2024, accounting for 3.7% of total outstanding shares, reflecting confidence in long-term growth [29][39] - Total cash position stood at RMB 14.7 billion as of December 31, 2024, providing a strong foundation for future growth initiatives [38] Q&A Session Summary Question: Impact of AI boom on online recruitment industry - Management noted a surge in AI-related job postings and active searches, indicating a significant shift in recruitment dynamics [44][46] - Concerns were raised about the potential oversaturation of AI-generated resumes and job descriptions [50][51] Question: Recruitment demand across different enterprise sizes and industries - Management highlighted strong sequential growth in online active job postings, particularly in white-collar industries and AI-related sectors [63][64] Question: Customer acquisition cost and marketing plans for 2025 - Management indicated no major marketing campaigns planned for 2025, focusing instead on user growth and brand awareness [72] Question: Revenue contribution and strategy for blue-collar business - The blue-collar segment is expected to continue growing, with strategic investments in AI and closed-loop services [78]

Core Viewpoint - Kanzhun Limited reported quarterly earnings of $0.22 per share, exceeding the Zacks Consensus Estimate of $0.21 per share, and showing an increase from $0.20 per share a year ago, indicating a positive earnings surprise of 4.76% [1] Financial Performance - The company achieved revenues of $249.83 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.70% and up from $222.57 million year-over-year [2] - Over the last four quarters, Kanzhun has consistently surpassed consensus EPS estimates and topped revenue estimates three times [2] Stock Performance - Kanzhun shares have increased approximately 26.2% since the beginning of the year, contrasting with a decline of -4.5% in the S&P 500 [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.16 on revenues of $245.11 million, and for the current fiscal year, it is $0.97 on revenues of $1.13 billion [7] - The trend of estimate revisions for Kanzhun is mixed, which may change following the recent earnings report [6] Industry Context - The Internet - Software industry, to which Kanzhun belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Core Insights - KANZHUN LIMITED, operating the BOSS Zhipin platform, reported strong financial results for the fourth quarter and full year of 2024, highlighting significant growth in user engagement and revenue generation [1][2][3]. Financial Performance - Average Monthly Active Users (MAU) for 2024 reached 53.0 million, a 25.3% increase from 42.3 million in 2023 [2]. - Fourth quarter revenues were RMB 1,823.6 million (US$ 249.8 million), up 15.4% from RMB 1,580.2 million in Q4 2023 [2][6]. - Full year revenues totaled RMB 7,355.7 million (US$ 1,007.7 million), reflecting a 23.6% increase from RMB 5,952.0 million in 2023 [2][17]. - Income from operations for Q4 2024 was RMB 380.6 million (US$ 52.1 million), a 71.2% increase from RMB 222.3 million in Q4 2023 [2][8]. - Adjusted income from operations for Q4 2024 was RMB 658.8 million (US$ 90.3 million), up 26.8% from RMB 519.7 million in Q4 2023 [2][8]. - Net income for Q4 2024 was RMB 444.2 million (US$ 60.9 million), a 34.1% increase from RMB 331.2 million in Q4 2023 [2][9]. - Full year net income was RMB 1,567.0 million (US$ 214.7 million), a 42.6% increase from RMB 1,099.2 million in 2023 [2][22]. Customer Growth - Total paid enterprise customers increased to 6.1 million in 2024, a 17.3% rise from 5.2 million in 2023 [4]. - Average MAU for Q4 2024 was 52.7 million, a 27.9% increase from 41.2 million in Q4 2023 [4]. Operational Efficiency - The adjusted operating margin for 2024 reached a record high of 31.5%, driven by effective business models and improved operational efficiencies [3]. - Total operating costs for Q4 2024 were RMB 1,456.3 million (US$ 199.5 million), a 6.8% increase from RMB 1,363.3 million in Q4 2023 [7][18]. Revenue Breakdown - Revenues from online recruitment services to enterprise customers for Q4 2024 were RMB 1,804.1 million (US$ 247.2 million), a 15.2% increase from RMB 1,566.7 million in Q4 2023 [10]. - Revenues from other services, mainly paid value-added services for job seekers, were RMB 19.5 million (US$ 2.7 million) for Q4 2024, a 44.4% increase from RMB 13.5 million in Q4 2023 [10][19]. Cash Position - As of December 31, 2024, the company had cash and cash equivalents totaling RMB 14,681.1 million (US$ 2,011.3 million) [16]. Share Repurchase Program - The company authorized a new share repurchase program in August 2024, allowing for the repurchase of up to US$ 150 million of its shares, in addition to a previous program for US$ 200 million [26][27]. Outlook - For Q1 2025, the company expects total revenues to be between RMB 1.90 billion and RMB 1.92 billion, representing a year-on-year increase of 11.5% to 12.7% [28].

Core Viewpoint - KANZHUN LIMITED, operating the BOSS Zhipin platform, will report its unaudited consolidated results for Q4 and the full year of 2024 on March 11, 2025, before the U.S. market opens [1] 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 [4] - The platform promotes two-way communication, focuses on intelligent recommendations, and creates new scenarios in the online recruiting process, benefiting from a large and diverse user base [4] - BOSS Zhipin has developed powerful network effects that enhance recruitment efficiency and drive rapid expansion [4]

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].