Investment Rating - The report assigns a "Buy" rating to the company with a target price of $1,397.00, indicating an upside potential of 18.7% from the current stock price of $1,176.78 [3][17]. Core Insights - The company's global localization content strategy is seen as a unique advantage, with significant investments in diverse content types to cater to local user preferences. This strategy has positioned the company ahead of competitors in content richness and user engagement [6][8]. - The advertising business is progressing well, with expectations that advertising revenue could reach $2.5 to $3 billion by 2025, significantly contributing to profit margins [6][11]. - The company is expected to maintain a compound annual growth rate (CAGR) of 13.2% in revenue from 2024 to 2027, with operating profit margins projected at 30.0%, 32.3%, and 34.6% for the respective years [6][11][17]. Financial Summary - For the fiscal year ending December 31, 2023, total revenue is projected to be $39,001 million, with a year-over-year growth of 15.6%. By 2025, revenue is expected to reach $45,196 million, reflecting a growth rate of 15.9% [4][18]. - Net profit for 2023 is forecasted at $8,712 million, with a significant increase to $11,362 million by 2025, indicating a growth rate of 30.0% [4][18]. - The earnings per share (EPS) is expected to rise from $20.3 in 2024 to $27.1 in 2025, representing a growth of 33.4% [4][18]. Performance Metrics - The company reported a 16% year-over-year revenue growth in Q2 2025, reaching $11,079 million, driven by user growth and increased subscription fees [6][11]. - Operating profit for Q2 2025 was $3,775 million, with an operating margin of 34.1%, exceeding company guidance [6][11]. - The company anticipates a revenue increase of 17% in Q3 2025, projecting $11,526 million, with an expected operating profit of $3,625 million and a margin of 31.5% [10][11]. Market Position - The company is recognized as a rare global content platform with a strong two-sided network effect, which enhances its operational leverage and profitability compared to competitors [7][8]. - The company has a significant lead in content variety and depth, with over 300 million subscription accounts, and its content strategy includes substantial investments in local content production [6][8].

Core Viewpoint - BOSS Zhipin's recent public offering in the Hong Kong market is not merely a capital-raising exercise but a strategic move to reshape its shareholder structure and enhance market liquidity [1][2][4]. Group 1: Public Offering Details - On June 25, BOSS Zhipin launched a public offering of 30 million Class A ordinary shares, representing 3.2% of the post-offering share capital, with an option to increase by up to 4.5 million shares [1]. - The offering is notable for allocating 10% of the shares, or 3 million shares, to individual investors, which is uncommon in typical institutional-focused offerings [1][2]. - The offering has seen strong demand, with international placements oversubscribed by over three times, indicating confidence from long-term investors in the company's future [1][2]. Group 2: Strategic Intent - The offering aims to create a more diverse shareholder base, transitioning from merely having a stock code to having a multi-faceted group of shareholders [2][6]. - BOSS Zhipin's management emphasizes that the offering is about establishing a genuine connection with the local market rather than just raising funds [4][6]. - The company seeks to address liquidity issues and reduce shareholder concentration, which has been a challenge since its initial public offering in 2022 [5][6]. Group 3: Financial Health - BOSS Zhipin is in a strong financial position, with a projected net profit of 1.567 billion RMB in 2024 and a net profit margin exceeding 42% [2]. - The company has maintained robust operating cash flow, exceeding 800 million RMB for five consecutive quarters, with cash equivalents nearing 15 billion RMB [2][4]. Group 4: Market Positioning - The public offering is designed to create initial stock supply, breaking the "no stock, no buy" market structure that has hindered trading activity [5][9]. - BOSS Zhipin aims to build a local investor base in the Hong Kong market, which is crucial for its long-term growth and stability [6][7]. - The company is focused on establishing a deeper relationship with investors, enhancing market understanding and engagement [9][16]. Group 5: Business Model and Growth - BOSS Zhipin's growth strategy is centered around improving matching efficiency in recruitment, leveraging a unique platform that integrates direct chat, recommendations, and mobile access [11][13]. - The company has successfully expanded its user base, serving over 16.6 million enterprises and achieving 57 million monthly active users by Q1 2025 [11][14]. - BOSS Zhipin is also diversifying its offerings by targeting blue-collar job markets and integrating AI technology to enhance platform capabilities [14][15]. Group 6: Long-term Vision - The company is focused on building a resilient matching model that can adapt to diverse and complex recruitment needs, ensuring long-term sustainability [15][16]. - BOSS Zhipin's approach contrasts with the fast-paced strategies of many peers, emphasizing steady growth and strategic stability [17][18]. - The goal is to create a capital market product that allows investors to genuinely "hold" the company rather than just "hear about" it [18].

Core Viewpoint - The article discusses the challenges faced by job seekers, particularly in the context of a shrinking job market and the rise of platforms like Boss Zhipin, which have thrived amid these difficulties. It highlights the disparity between the struggles of job seekers and the success of recruitment platforms that cater primarily to businesses. Group 1: Job Market Challenges - Fudan University has significantly reduced its enrollment in liberal arts, from 30%-40% to 20%, due to declining student numbers and societal demand [1] - The employment market is facing a record number of graduates, with 12.22 million expected to enter the workforce this year, marking a historical high [4] - There is a simultaneous struggle between job seekers and employers, with reports of a "most difficult employment season" persisting for a decade [3][5] Group 2: Boss Zhipin's Performance - Boss Zhipin reported a revenue increase of 12.9% to 1.923 billion, with net profit soaring by 111.9% to 512 million [7] - The platform has seen its monthly active users surpass 53 million, with revenue and net profit both growing by approximately 40% [15] - The company's income is predominantly from B-end services, with 98% of revenue coming from businesses seeking recruitment services [17] Group 3: Market Dynamics - The average talent supply-demand ratio in new economic sectors has risen from 1.29 to 2.06, indicating increased competition for jobs [13] - Boss Zhipin has focused on three growth markets: blue-collar workers, lower-tier cities, and micro-enterprises, which are characterized by large scales rather than high profitability [20] - The blue-collar workforce, comprising over 400 million individuals, has become a significant focus for recruitment platforms, with Boss Zhipin's revenue from this segment reaching 39% [32] Group 4: Recruitment Strategies - Boss Zhipin's business model emphasizes detailed and flexible pricing strategies, allowing companies to pay for specific recruitment services as needed [17] - The platform has successfully transitioned to cater to blue-collar workers, with a notable increase in user engagement and job postings in this demographic [31][33] - The competitive landscape of online recruitment has intensified, with Boss Zhipin leveraging its direct communication model to attract both job seekers and employers [43][44]

Investment Rating - The report assigns a rating of "Buy" for Meituan-W (3690) [1][9]. Core Insights - In Q1 2025, the core local business operating profit increased by 39% year-on-year, indicating strong performance despite anticipated profit fluctuations in Q2 due to competitive pressures in the food delivery sector. However, long-term competitive barriers remain solid [3][8]. - The company plans to invest 100 billion RMB over the next three years to enhance its ecosystem, which is expected to improve user engagement and frequency of purchases, particularly among mid-to-high frequency users [8][9]. Financial Summary - Revenue for Q1 2025 reached 86.56 billion RMB, a year-on-year increase of 18.1%, with adjusted net profit of 10.949 billion RMB, up 46.2% year-on-year. The operating profit margin improved by 5.1 percentage points to 12.2% [8]. - The core local business generated revenue of 64.325 billion RMB in Q1 2025, reflecting a 17.8% year-on-year increase, while operating profit rose by 39.1% to 13.491 billion RMB, with an operating profit margin of 21.0% [8]. - The financial projections for 2025-2027 have been adjusted, with expected revenues of 393 billion, 459 billion, and 536 billion RMB respectively, and adjusted net profits of 41.8 billion, 53.9 billion, and 68.5 billion RMB [9][12]. Valuation Methodology - The report employs a Sum-of-the-Parts (SOTP) valuation method, assigning a 20x PE ratio to the core local business and a 0.5x PS ratio to new businesses, resulting in a target price of 177 HKD for Meituan-W [9][10].