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 ...

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. ...

KANZHUN LIMITED Sponsored ADR (BZ) shares soared 19.3% in the last trading session to close at $15.19. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.8% loss over the past four weeks.The surge in Kanzhun’s stock price can be linked to growing investor confidence in the company's future potential. As the operator of BOSS Zhipin, an online recruitment platform, Kanzhun is capitalizing on favorable market conditions in China, par ...

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 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]