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]

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]

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]

Core Viewpoint - The integration of AI into human resource management is transforming the industry, with over 70% of surveyed companies already applying AI to enhance employee experience and recruitment efficiency [1][14]. Group 1: Industry Trends - The human resource service industry in China is expected to grow rapidly, with a projected compound annual growth rate (CAGR) of 12.7% from 2023 to 2028, driven by the deepening application of AI [1]. - The global economic recovery is leading to a significant rebound in corporate recruitment demand, benefiting companies like BOSS Zhipin [4]. Group 2: Company Performance - BOSS Zhipin reported a total revenue of 7.356 billion yuan for the year 2024, exceeding market expectations of 6.8 billion yuan, representing a year-on-year growth of 23.6% [4]. - The company achieved a fourth-quarter revenue of 1.824 billion yuan, marking a 15.4% year-on-year increase and maintaining double-digit growth for six consecutive quarters [4]. - The number of job postings on BOSS Zhipin's platform increased by 28% year-on-year, indicating a recovery in hiring demand [4]. Group 3: User and Technology Growth - BOSS Zhipin's unique "user-technology" dual-driven model has contributed to its growth, with nearly 49.5 million new users added in 2024 [5][6]. - The platform served over 225 million users and more than 16.6 million enterprises, facilitating over 1.85 billion interactions [6]. - Monthly active users (MAU) reached over 53 million, with a year-on-year growth of 25.3% [6]. Group 4: Financial Metrics - The company’s operating cash flow exceeded 800 million yuan for six consecutive quarters, with a record high of 956 million yuan in the fourth quarter [9]. - BOSS Zhipin's net profit increased by 42.6% year-on-year, with adjusted net profit reaching 2.71 billion yuan, a 25.7% increase [10]. - The adjusted operating profit margin reached a historical high of 31.5% due to improved operational efficiency [9]. Group 5: AI Integration and Innovation - BOSS Zhipin accelerated its AI initiatives in 2024, integrating its self-developed recruitment-specific large language model "Nanbeige" into its product matrix [9]. - The company invested 1.816 billion yuan in research and development, reflecting a 17.6% year-on-year increase [9]. - AI applications are expected to enhance recruitment efficiency, with companies reporting a 30% reduction in HR department workload [14]. Group 6: Market Outlook and Investor Sentiment - Despite a year-to-date stock price increase of over 32%, BOSS Zhipin's shares remain at historically low levels, indicating potential for future growth [12]. - Major global investment firms, including Goldman Sachs and Morgan Stanley, have issued buy/hold ratings for BOSS Zhipin, reflecting positive market sentiment [12][13]. - The company projects a revenue growth of 11.5%-12.7% for Q1 2025, with net profit margin targets set between 22%-25% [13].

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 Data and Key Metrics Changes - In Q4 2024, the company achieved GAAP revenue of RMB 1.82 billion, up 15% year-on-year [7] - For the full year 2024, GAAP revenue reached RMB 7.36 billion, reflecting a 24% year-on-year increase [8] - Adjusted net income for Q4 was RMB 720 million, a 15% increase year-on-year, while for the full year it was RMB 2.71 billion, up 26% year-on-year [8][37] - Adjusted operating income for the full year was RMB 2.32 billion, rising by 41% year-on-year [9] - The adjusted operating margin for Q4 reached a historical high of 36.1% [32] Business Line Data and Key Metrics Changes - Average verified monthly active users (MAU) on the BOSS Zhipin app increased by 28% year-on-year to 52.7 million in Q4 [7] - The number of paid enterprise customers reached 6.1 million, marking a 17% year-on-year growth [31] - Revenue contribution from blue-collar segments rose to 38% in 2024, with the manufacturing sector showing the fastest growth [13] - The average revenue per paying user (ARPPU) grew by 6.8% year-on-year in Q4 [31] Market Data and Key Metrics Changes - The recruitment market showed signs of stabilization towards the end of 2024, with a significant increase in active job postings post-Chinese New Year [26][63] - The job seeker to enterprise user ratio among new users improved compared to the same period last year [27] - AI-related job postings surged by over 60% year-on-year, indicating a revitalizing ecosystem for emerging business [28] Company Strategy and Development Direction - The company is focusing on enhancing user experience through continuous product and service optimization, particularly targeting blue-collar workers and micro/small enterprises [15] - There is an emphasis on AI applications, with ongoing development of AI-powered tools for both job seekers and recruiters [19][22] - The company plans to explore closed-loop services and placement-related services to further enhance its offerings [17][78] Management's Comments on Operating Environment and Future Outlook - Management noted that despite macroeconomic challenges, the user growth-driven revenue model remains effective [11] - The recruitment spending is expected to show an upswing trajectory post-Chinese New Year, with projected revenues for Q1 2025 between RMB 1.9 billion and RMB 1.92 billion [40] - Management expressed confidence in long-term growth, supported by robust cash reserves and operating cash flows [38][39] Other Important Information - The company repurchased approximately $229 million worth of shares in 2024, accounting for 3.7% of total outstanding shares [29] - Share-based compensation expenses as a percentage of revenue decreased by 2.3 percentage points compared to 2023 [9] Q&A Session Summary Question: Impact of AI boom driven by DeepSeek on online recruitment industry - Management noted a surge in AI-related job postings and active searches, indicating a significant shift in recruitment dynamics [46][47] - Concerns were raised about the potential pollution of resumes and job descriptions due to AI-generated content [50][51] Question: Recruitment demand between different enterprise sizes and industries - Management highlighted strong sequential growth in online active job postings, particularly in white-collar industries [63] - The overall cash inflow has shown an accelerating growth trend, indicating a recovery across various sectors [64] Question: Customer acquisition cost and marketing plans for 2025 - There are no major marketing campaigns planned for 2025, as the company is still in a fast user growth stage [72] - The traffic acquisition cost per user has decreased significantly due to improved brand awareness [72] Question: Revenue contribution and client feedback from blue-collar business - The Hailuo project has seen significant contract amounts and user engagement, indicating positive feedback and growth potential [76][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]

Financial Performance - In Q4 2024, the company achieved GAAP revenue of RMB1.82 billion, a 15% year-on-year increase [4] - Adjusted net income for Q4 reached RMB720 million, reflecting a 15% year-on-year growth [4] - For the full year 2024, GAAP revenue was RMB7.36 billion, up 24% year-on-year [5] - Adjusted net income for the full year was RMB2.71 billion, a 26% year-on-year increase [5] - Adjusted operating income for 2024 was RMB2.32 billion, rising by 41% year-on-year [5] - Share-based compensation expenses as a percentage of revenue decreased by 2.3 percentage points compared to 2023 [5] - The company reported a historical high adjusted operating margin of 36.1% in Q4 [24] Business Lines and User Metrics - Average verified monthly active users (MAU) on the app increased by 28% year-on-year to 52.7 million in Q4 [4] - The company attracted nearly 49.5 million new verified users in 2024, setting a record for annual user growth [5] - Revenue contribution from blue-collar segments rose to 38% in 2024, with the manufacturing sector showing the fastest growth [8][9] - The number of paid enterprise customers reached 6.1 million, marking a 17% year-on-year growth [22] Market Data and Trends - The recruitment market showed signs of stabilization towards the end of 2024, despite challenges [21] - Post-Chinese New Year, key metrics such as active users and job postings reached historical highs [18] - AI-related job postings surged by over 50% year-on-year, indicating a revitalized ecosystem for emerging business [19] Company Strategy and Industry Competition - The company is committed to enhancing user experience through continuous product and service optimization [10] - AI implementation is a key focus, with applications aimed at improving management efficiency and reducing costs [16] - The company plans to explore AI applications further, with a roadmap for new services [41] Management Commentary on Future Outlook - Management expects total revenues for Q1 2025 to be between RMB1.9 billion and RMB1.92 billion, reflecting a year-on-year increase of 11.5% to 12.7% [29] - The company aims for a non-GAAP operating profit target of RMB3 billion for 2025, a 30% increase from 2024 [54] Other Important Information - The company repurchased approximately $229 million worth of shares in 2024, accounting for 3.7% of total outstanding shares [20] - Cash position stood at RMB14.7 billion as of December 31, 2024, supporting future growth initiatives [28] Q&A Session Summary Question: Impact of AI boom on online recruitment industry - Management noted a significant increase in AI-related job postings and active searches, indicating a shift in recruitment dynamics [32][34] Question: Future roadmap for AI product development - The company plans to continue investing in AI applications and has already established a strong computing power base [39][41] Question: Recruitment demand across different enterprise sizes and industries - Management highlighted strong sequential growth in recruitment demand, particularly in AI-related jobs [46] Question: Customer acquisition cost and marketing plans for 2025 - There are no major marketing campaigns planned for 2025, with a focus on user growth and brand awareness [52] Question: Revenue contribution from blue-collar business and client feedback - The blue-collar segment is growing, with significant contributions from the HaiLuo program [56]

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].