Why a Fund Has a $118 Million Bet on This Chinese Stock Still 50% Below Its 2021 Highs

Company Overview - Kanzhun Limited operates BOSS Zhipin, an online recruitment platform that connects job seekers with employers, generating revenue primarily from recruitment-related services [5] - The company has a market capitalization of $9.8 billion, with a revenue of $8 billion and a net income of $2.5 billion for the trailing twelve months [5] - Kanzhun Limited employs over 5,000 staff and is headquartered in Beijing, focusing on digital recruitment for enterprises of varying sizes [11] Investment Activity - Serenity Capital Management increased its stake in Kanzhun Limited by 1 million shares, bringing its total holding to 5 million shares valued at $117.6 million, which constitutes 29.9% of its reportable U.S. equity assets [3][6] - The additional shares were purchased for approximately $45.6 million, indicating a significant investment in the company [2][6] Market Performance - As of the latest report, Kanzhun Limited's shares were priced at $21.09, reflecting a 54% increase over the past year, significantly outperforming the S&P 500's 16% gain during the same period [4] - The company has shown operational improvements, with revenue rising 13% year over year to approximately $304 million, driven by growth in paid enterprise customers and monthly active users [10] Industry Context - The investment by Serenity Capital Management suggests a belief in the durability of the recovery in China's hiring market, moving beyond a cyclical rebound [9] - The company's focus on leveraging technology to streamline recruitment in China's competitive labor market positions it favorably as demand stabilizes [8][10]