GF SECURITIES·2024-07-28 07:01Investment Rating - The report maintains a "Buy" rating for the company, with a target price of $19.91 per ADS, compared to the current price of $13.73 [4]. Core Views - For Q2 2024, the company is expected to achieve revenue of 1.91 billion RMB, representing a year-on-year growth of 28.4% and a quarter-on-quarter growth of 12.1%. The overall performance of the recruitment industry is below expectations due to macroeconomic pressures, leading to a contraction in enterprise recruitment demand [2][3]. - The company, as a leading online recruitment platform, continues to benefit from network effects, with a projected 5% year-on-year growth in additional services revenue for job seekers in Q2 2024 [2]. - The report anticipates that the user base will maintain a good year-on-year growth trend, with a slight decline in the number of paying enterprise clients due to macroeconomic impacts [2][3]. Financial Summary - Revenue projections for 2024 and 2025 are 7.415 billion RMB and 9.045 billion RMB, respectively, with year-on-year growth rates of 24.6% and 22.0% [2][3]. - Adjusted net profits for 2024 and 2025 are expected to be 2.581 billion RMB and 2.976 billion RMB, respectively [2][3]. - The report highlights a slight decrease in ARPU (Average Revenue Per User) by 0.3% year-on-year for Q2 2024, but a slight increase quarter-on-quarter [2].