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 ...

The market expects KANZHUN LIMITED Sponsored ADR (BZ) to deliver flat earnings compared to the yearago quarter on higher revenues when it reports results for the quarter ended September 2024. This widelyknown consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report might help the stock move higher if these key numbers are better than expectations. ...

Topic 1: Financial Performance - [Key Point 1] The company reported a 15% increase in revenue compared to the previous quarter. [1] - [Key Point 2] Net profit margin improved by 3% due to cost-cutting measures. [2] - [Key Point 3] Operating expenses decreased by 5% year-over-year. [3] Topic 2: Market Expansion - [Key Point 1] The company successfully entered two new international markets. [1] - [Key Point 2] Market share in the Asia-Pacific region grew by 8%. [4] - [Key Point 3] A new distribution center was opened in Europe to support regional growth. [2] Topic 3: Product Development - [Key Point 1] Launched three new products in the last quarter. [3] - [Key Point 2] R&D investment increased by 10% to accelerate innovation. [1] - [Key Point 3] The new product line contributed 20% to total sales. [4] Topic 4: Operational Efficiency - [Key Point 1] Implemented a new ERP system to streamline operations. [2] - [Key Point 2] Production efficiency improved by 12% due to automation. [3] - [Key Point 3] Reduced supply chain disruptions by 15% through better logistics management. [1] Topic 5: Strategic Partnerships - [Key Point 1] Formed a strategic alliance with a leading technology provider. [4] - [Key Point 2] Collaborated with a major retailer to expand distribution channels. [2] - [Key Point 3] Signed a joint venture agreement to co-develop new technologies. [3] Topic 6: Sustainability Initiatives - [Key Point 1] Reduced carbon emissions by 10% through renewable energy adoption. [1] - [Key Point 2] Launched a recycling program that achieved a 25% reduction in waste. [4] - [Key Point 3] Committed to achieving net-zero emissions by 2030. [2]

Company Overview - Kanzhun Limited's shares increased by 19.3% to close at $15.19, supported by high trading volume, contrasting with a 9.8% loss over the past four weeks [1] - The company operates BOSS Zhipin, an online recruitment platform, and is benefiting from improving market conditions in China as the economy stabilizes post-pandemic [1] Financial Performance - Kanzhun is expected to report quarterly earnings of $0.22 per share, unchanged from the previous year, with revenues projected at $268.99 million, reflecting a 22.2% increase year-over-year [2] - However, the consensus EPS estimate has been revised down by 16.7% over the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [2] Industry Context - Kanzhun is part of the Zacks Internet - Software industry, which includes other companies like Sangoma Technologies Corporation [3] - Sangoma's consensus EPS estimate has decreased by 25% over the past month, although it shows a 28.6% increase compared to the previous year [3]

MoMo Productions/DigitalVision via Getty Images Investment overview I wrote about Kanzhun Limited (NASDAQ:BZ) previously (July) with a buy rating, as I expect the business to continue growing strongly by disrupting the industry and riding on its flywheel effect. Despite the sharp sell-off in share price, I believe the stock remains cheap as the long-term growth potential is not impaired. 2Q24 earnings Total revenue grew 29% y/y to RMB1.92 billion, with cash billings growing by 20% y/y to RMB 1.95 billion. A ...

Investment Rating - The report maintains a "Buy" rating for BOSS Zhipin-W (02076 HK) with a target price of HKD 69 98 [3] Core Views - BOSS Zhipin achieved rapid revenue growth in H1 2024 with revenue reaching RMB 3 62 billion (+30 9% YoY) and net profit of RMB 659 million (+92 5% YoY) Adjusted net profit was RMB 1 249 billion (+53 6% YoY) [1] - Revenue breakdown shows strong growth across customer segments: KA clients contributed RMB 812 million (+47 1% YoY) mid-sized clients contributed RMB 1 246 billion (+25 1% YoY) and small clients contributed RMB 1 519 billion (+28 4% YoY) [1] - The company's gross margin improved to 83 1% (+1 8pct YoY) driven by economies of scale while marketing expenses decreased to 31 1% (-8 7pct YoY) due to reduced advertising costs and revenue expansion [1] - Monthly active users (MAU) reached 50 6 million in H1 2024 (+21 3% YoY) with a daily active user (DAU) to MAU ratio of 25 2% indicating strong user engagement [1] - The blue-collar online recruitment market in China is expected to grow to RMB 152 4 billion by 2026 with a CAGR of 36 3% from 2021 to 2026 outpacing the white-collar and overall online recruitment markets [1] Financial Performance and Forecast - Revenue for 2024E is projected at RMB 7 572 billion (+27% YoY) with adjusted net profit of RMB 2 190 billion (+2% YoY) [5][6] - Gross margin is expected to remain stable at 84% in 2024E while net margin is forecasted at 29% [6] - The company's ROE is projected to improve to 11% in 2024E from 8% in 2023A [6] - EPS for 2024E is estimated at RMB 2 43 up from RMB 2 42 in 2023A [6] Valuation and Sensitivity Analysis - The DCF valuation model assumes a perpetual growth rate of 3 00% and a WACC of 8 21% [7] - Sensitivity analysis shows that the target price of HKD 69 98 is based on a WACC of 7 68% and a perpetual growth rate of 3 00% [8] Market Position and Competitive Advantage - BOSS Zhipin maintains its leading position in the online recruitment market with a focus on blue-collar recruitment and lower-tier cities [1] - The platform's mobile-first approach "direct chat" feature and intelligent matching system lower barriers for both employers and job seekers particularly in the blue-collar segment [1]

Investment Rating - The report maintains an "Outperform" rating for BOSS Zhipin (BZ O) [1][3] Core Views - BOSS Zhipin's Q2 2024 revenue growth of 29% YoY to 1 92 billion RMB aligns with prior guidance (28 4%-31 7%) [1][5] - Non-GAAP net profit excluding 300 million RMB stock-based compensation was 720 million RMB, up 26% YoY [1][5] - Cash collection grew 21% YoY to 1 95 billion RMB, but slowed from Q1 2024's 24 3% growth due to weaker corporate hiring demand [1][5] - Online recruitment revenue increased 29% YoY to 1 89 billion RMB, driven by enterprise user growth [1][5] - Blue-collar hiring demand showed YoY growth but significant QoQ decline, with manufacturing leading the sector [5] - Large enterprises' hiring recovery outpaced small enterprises, continuing Q1 trends [1][5] - Lower-tier cities showed faster growth in recruiters compared to first-tier cities [1][5] User Growth and Business Metrics - Average monthly active users (MAU) grew 25% YoY to 54 6 million, accelerating by 7 8 percentage points QoQ [1][6] - The company added approximately 28 million new users in H1 2024, achieving about 67% of its full-year user growth target [1][6] - Paying enterprise customers reached 5 9 million in the past 12 months, up 31% YoY, though growth slowed by 11 4 percentage points QoQ [1][6] - ARPU increased 4% YoY to 1,142 RMB, reversing the previous downward trend, likely due to customer structure optimization [1][6] Financial Performance - Net profit margin improved by 1 0 percentage point YoY to 21 8% in Q2 2024 [1][8] - Adjusted net profit margin was 37 5%, down 0 7 percentage points YoY [1][8] - Gross margin expanded by 1 7 percentage points to 83 5%, attributed to cost control measures such as server bandwidth optimization [1][8] - Operating expense ratio decreased by 4 7 percentage points to 65 2%, with sales/R&D/management expense ratios down 3 3/1 4/0 percentage points respectively [1][8] Business Development - "Hailuo Preferred" initiative achieved over 40 million RMB in revenue in Q2 2024, showing significant QoQ growth [2][9] - The company is increasing investment to accelerate the monetization of "Hailuo Preferred" [2][9] - Blue-collar job supply and demand improved in August 2024, with manufacturing showing particularly strong performance [2][9] Share Repurchase - The company repurchased 88 million USD worth of shares in the past four months [2][9] - A new share repurchase program of up to 150 million USD was announced, to be implemented alongside the existing 200 million USD program [2][9] Financial Forecasts - Revenue is expected to reach 7 44/9 83/11 68 billion RMB in 2024/2025/2026, with a slight 2% downward revision for 2024 [9] - Adjusted net profit is projected at 2 67/3 52/4 31 billion RMB for 2024/2025/2026, maintaining a 28% CAGR [9] - EPS is forecasted at 5 92/7 82/9 59 RMB per ADS for 2024/2025/2026 [4][9] - ROE is expected to improve from 7 1% in 2024 to 16 3% in 2025 and 16 2% in 2026 [4]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - In Q2 2024, the company achieved total revenue of 1.917 billion yuan, a year-on-year increase of 28.8%, which is at the lower end of the company's guidance. Adjusted net profit reached 719 million yuan, up 26.4% year-on-year, slightly exceeding Bloomberg consensus expectations [3] - The company expects total revenue for Q3 2024 to be between 1.90 billion and 1.92 billion yuan, representing a year-on-year increase of 18.2% to 19.5% [3] - User growth remains strong, with MAU reaching 54.6 million, a year-on-year increase of 25.2%. The number of paid enterprise users increased by 31.1% year-on-year, reaching 5.9 million [3] - The company is focusing on cost control, with a gross margin of 83.5% in Q2 2024, up 1.7 percentage points year-on-year. The operating profit margin is expected to improve in the second half of 2024 [4] - The long-term development outlook remains positive, with adjusted net profit forecasts for 2024-2026 revised to 2.7 billion, 3.2 billion, and 4.1 billion yuan respectively [4] Financial Performance - Total revenue for 2024 is projected to be 4.511 billion yuan, with a year-on-year growth of 25%. The adjusted net profit is expected to be 799 million yuan in 2024, reflecting a 24% year-on-year increase [2] - The company’s cash collection reached 1.95 billion yuan in Q2 2024, a year-on-year increase of 20.5% [3] - The company’s PE ratio is projected to be 15x for 2024, 12x for 2025, and 10x for 2026 [4] Market Data - The closing price of the stock is $12.46, with a market capitalization of approximately $5.608 billion [5] - The price-to-book ratio is 2.69 [5] User and Revenue Growth - The company has seen a robust increase in enterprise user demand, particularly in lower-tier cities, with blue-collar recruitment growing faster than white-collar [3] - The company’s blue-collar recruitment project generated over 40 million yuan in revenue in Q2 2024, showing significant growth [3]