Core Viewpoint - BOSS Zhipin reported strong financial performance for Q2 2025, with revenue and profit growth driven by an expanding user base and effective cost management [2][6]. Financial Performance - Revenue for Q2 2025 reached 2.102 billion yuan, a year-on-year increase of 9.7%, exceeding market expectations [2]. - Net profit for the same period was 710 million yuan, showing significant growth, while adjusted operating profit rose by 33.4% to 880 million yuan [6]. - The company plans to distribute a cash dividend of approximately 80 million USD and extend its share buyback program to repurchase up to 250 million USD of its shares [7]. User Growth and Market Dynamics - The number of paying enterprise clients increased to 6.5 million, a year-on-year growth of 10.2% [4]. - The job market showed improvement, with new job postings for fresh graduates increasing by over 18% from June to July [9]. - The average monthly active users (MAU) reached 63.6 million, up 16.5% year-on-year [6]. AI Integration and Product Development - The company is actively integrating AI into its operations, enhancing user experience and operational efficiency [10][11]. - AI tools are being utilized for job matching and recruitment optimization, with a significant increase in users leveraging these features [10][11]. Market Sentiment and Institutional Support - Major financial institutions, including Goldman Sachs and Morgan Stanley, have issued buy/hold ratings for BOSS Zhipin, indicating positive market sentiment [8]. - The recent stock issuance in Hong Kong attracted significant interest, with oversubscription from both institutional and retail investors [7].

Core Viewpoint - BOSS Zhipin reported strong growth in user base, revenue, and profitability for Q2 2025, driven by improvements in the recruitment market and the application of AI technology across its operations [1][3][6] Financial Performance - In Q2 2025, the company achieved revenue of 2.102 billion yuan, a year-on-year increase of 9.7%, surpassing market expectations [1] - Revenue from the recruitment segment was 2.078 billion yuan, up 9.8% year-on-year [1] - Net profit reached 710 million yuan, showing significant growth, while adjusted operating profit was 880 million yuan, reflecting a 33.4% increase year-on-year [3] User Growth and Engagement - As of June 30, 2025, the number of paid enterprise clients reached 6.5 million, a year-on-year increase of 10.2% [1] - The average monthly active users (MAU) for the app rose to 63.6 million, a 16.5% increase year-on-year [1] AI Integration and Development - The company continues to enhance its AI capabilities, applying AI in product development, customer service, and operational efficiency [3][7] - The number of users utilizing AI tools for job searching and recruitment is on the rise, with AI-driven features improving user experience and efficiency [3][4] - AI tools are being used to optimize job postings and assist in candidate matching, with a focus on enhancing rather than replacing human roles [4][6] Market Outlook - Multiple institutions, including Goldman Sachs and Morgan Stanley, have positive outlooks on BOSS Zhipin, citing the potential of AI technology to enhance business development and user experience [6] - International long-term investors have increased their holdings in BOSS Zhipin during Q2 [6] Security Enhancements - The security team has intensified the use of AI to improve risk control capabilities, enhancing the identification of violations and improving user safety [7] - AI is being utilized for daily inspections and risk alerts, providing timely notifications to users [7]

Core Insights - BOSS Zhipin reported Q2 2025 revenue of 2.102 billion yuan, a year-on-year increase of 9.7%, exceeding market expectations [1] - The revenue structure remains heavily reliant on the recruitment sector, which accounted for 99% of total revenue [1] - Revenue from the recruitment sector reached 2.078 billion yuan, reflecting a year-on-year growth of 9.8% [1] Revenue Growth Factors - The growth in recruitment revenue is attributed to increased penetration in incremental markets and higher contributions from corresponding clients [1] - There was a notable increase in revenue contributions from blue-collar workers, second-tier cities, and small to medium-sized enterprises during Q2 [1] - The number of new job postings for fresh graduates increased by over 18% year-on-year during June and July, addressing the previously observed mismatch between job seekers and available positions [1] User Engagement and Cost Management - From January to July 2025, BOSS Zhipin added over 30 million new users [1] - The average monthly active users reached 63.6 million in Q2, marking a year-on-year increase of 16.5% [1] - Sales and marketing expenses amounted to 420 million yuan, a decrease of 23% year-on-year, bringing the expense-to-revenue ratio to a historical low [1]

Core Insights - BOSS Zhipin reported a positive financial performance for Q2 2025, with revenue growth driven by an expanding user base and improved market conditions in the recruitment sector [1][2] Revenue and Market Performance - In Q2 2025, the company achieved revenue of 2.102 billion yuan, a year-on-year increase of 9.7%, surpassing market expectations [1] - Revenue from the recruitment segment was 2.078 billion yuan, up 9.8% year-on-year, primarily due to increased market penetration and contributions from blue-collar jobs and small to medium enterprises [1][2] - The number of new job postings on the platform increased by approximately 20% year-on-year in July, indicating a recovery in the overall recruitment market [2] Profitability and Cost Management - The company reported a net profit of 710 million yuan for Q2 2025, showing significant growth, while adjusted operating profit rose by 33.4% to 880 million yuan [3] - Sales and marketing expenses decreased by 23% year-on-year to 420 million yuan, marking a historical low as a percentage of revenue [3] Shareholder Returns - BOSS Zhipin announced an annual dividend policy, with an expected total cash dividend of approximately 80 million USD to be distributed in October 2025 [4] - The existing share buyback plan was extended for an additional 12 months, with a maximum buyback amount increased to 250 million USD [5] AI Integration and User Engagement - The number of users utilizing AI tools for job searching and recruitment continued to grow, with AI applications enhancing user experience and operational efficiency [6] - AI tools provided job seekers with personalized content and improved matching capabilities, leading to higher success rates in job placements [6] User Safety and Security Measures - The company enhanced its risk control capabilities through AI, improving the identification of violations and reducing response times for user reports [7] - Over 50 million risk alerts were sent to users in Q2 2025, warning them about common scams and fraudulent activities [7]

Investment Rating - The investment rating for the company is "Outperform the Market" [5][21]. Core Insights - The company reported better-than-expected operating profit for Q1 2025, with a revenue of 1.923 billion RMB, reflecting a year-on-year growth of 12.9%, slightly exceeding management's guidance [1][7]. - Non-GAAP operating profit reached 691 million RMB, up 76.2% year-on-year, and Non-GAAP net profit attributable to shareholders was 770 million RMB, a 44.2% increase, surpassing Bloomberg consensus estimates [1][7]. - Cash collections for Q1 2025 were 2.180 billion RMB, showing a 6.3% year-on-year increase and a marginal acceleration compared to Q4 2024 [1][7]. Business Segmentation - The enterprise online recruitment business (B-end) generated 1.901 billion RMB in revenue, also reflecting a 12.9% year-on-year growth, with the number of paying enterprise clients reaching 6.38 million, a 12.3% increase [2][8]. - The average ARPU (Average Revenue Per User) was 1,170 RMB, up 5.6% year-on-year [2][8]. - The demand for recruitment has continued to recover post-Spring Festival, with a 17% year-on-year increase in new job postings from January to April 2025 [2][8]. Financial Performance - The Non-GAAP operating profit margin for Q1 2025 was 36.0%, an increase of 13.0 percentage points year-on-year, with a gross margin of 83.8% [3][15]. - The company has successfully reduced costs and improved efficiency, leading to a significant enhancement in profit margins [3][15]. - For Q2 2025, the company expects revenue growth of 6.9% to 8.5%, projecting revenue between 2.05 billion and 2.08 billion RMB [3][16]. Future Outlook - The company anticipates continued growth in user numbers and payment willingness, with a focus on the recovery of enterprise recruitment demand and the gradual commercialization of AI tools [3][16]. - Adjusted profit forecasts for 2025 to 2027 are 3.35 billion, 4.31 billion, and 5.27 billion RMB, respectively, indicating year-on-year growth rates of 24%, 29%, and 22% [3][16].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown better-than-expected performance in Q1 2025, with a continued recovery in recruitment demand [3] - The company is expected to maintain a competitive advantage in the online recruitment sector while actively expanding its AI business, which is anticipated to enhance long-term growth potential [3] Financial Performance Summary - Total revenue for 2023 is projected at 5,952.03 million RMB, with a year-on-year growth of 31.94% - The net profit attributable to the parent company for 2023 is expected to be 1,099.23 million RMB, reflecting a significant year-on-year increase of 924.97% - Non-GAAP net profit for 2023 is forecasted at 2,156.19 million RMB, with a year-on-year growth of 169.71% - Adjusted EPS for 2023 is estimated at 4.71 RMB per ADS, with a PE ratio (Non-GAAP) of 25.84 [1][9] Market Demand and User Growth - Positive signals in recruitment demand across multiple industries, with blue-collar and small enterprise contributions continuing to rise - The blue-collar business's contribution to revenue exceeded 39% in Q1 2025, driven by a significant increase in blue-collar users [3] - The contribution from users in third-tier cities and below increased by 3 percentage points to over 23% year-on-year [3] Cost Control and Profitability - The company achieved a gross margin increase of 1.2 percentage points to 84% in Q1 2025 - Sales expense ratio decreased by 8.5 percentage points due to reduced advertising and employee-related costs, indicating improved customer acquisition efficiency [3] - The company maintains a guidance of 3 billion RMB for adjusted operating profit in 2025, supported by enhanced customer acquisition efficiency and AI-driven cost reductions [3] Earnings Forecast - The company forecasts Non-GAAP net profits of 3.3 billion RMB, 4.1 billion RMB, and 4.8 billion RMB for 2025, 2026, and 2027 respectively, with corresponding PE ratios of 17, 14, and 12 [3]

Investment Rating - The report maintains a "Buy" rating for BOSS Zhipin (BZ) [1] Core Views - The recruitment demand continues to recover, with positive signals across multiple industries, particularly in blue-collar and small enterprises [3] - The company demonstrates strong cost control, leading to improved profitability [3] - The long-term growth potential is supported by the company's competitive advantages in the online recruitment sector and its active engagement in AI business [3] Financial Performance Summary - Total revenue for 2023 is projected at 5,952.03 million RMB, with a year-on-year growth of 31.94% [1] - The net profit attributable to the parent company is expected to reach 1,099.23 million RMB in 2023, reflecting a significant year-on-year increase of 924.97% [1] - Non-GAAP net profit is forecasted at 2,156.19 million RMB for 2023, showing a year-on-year growth of 169.71% [1] - The adjusted EPS is estimated to be 4.71 RMB per ADS for 2023, with a PE ratio of 25.84 based on Non-GAAP earnings [1] Market and User Growth - The blue-collar business's contribution to revenue has increased to over 39%, driven by a significant growth in blue-collar users [3] - The revenue contribution from users in third-tier cities and below has increased by 3 percentage points to over 23% [3] - The number of paid enterprise clients reached 6.38 million, marking a year-on-year growth of 12.3% [8]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown better-than-expected performance in Q1 2025, with a continued recovery in recruitment demand [3] - The company is expected to maintain a competitive advantage in the online recruitment sector while actively expanding its AI business, which is anticipated to enhance long-term growth potential [3] Financial Performance Summary - Total revenue for 2023 is projected at 5,952.03 million RMB, with a year-on-year growth of 31.94%. For 2024, revenue is expected to reach 7,355.68 million RMB, growing by 23.58% [1] - The net profit attributable to the parent company is forecasted to be 1,099.23 million RMB in 2023, with a staggering year-on-year increase of 924.97%. By 2024, this is expected to rise to 1,584.66 million RMB, reflecting a growth of 44.16% [1] - Non-GAAP net profit is estimated at 2,156.19 million RMB for 2023, with a year-on-year growth of 169.71%. The projection for 2024 is 2,710.71 million RMB, indicating a growth of 25.72% [1] - The adjusted EPS is expected to be 4.71 RMB in 2023, increasing to 5.92 RMB in 2024 [1] Market Trends and Insights - There are positive signals in recruitment demand across multiple industries, with blue-collar and small enterprise contributions continuing to rise [3] - The company has seen an increase in blue-collar business contributions to over 39% of revenue, driven by user growth in this segment [3] - The company has effectively controlled costs, leading to an improvement in profitability, with a gross margin increase of 1.2 percentage points to 84% in Q1 2025 [3] Future Projections - The company maintains a guidance of 3 billion RMB for adjusted operating profit in 2025, supported by improved customer acquisition efficiency and AI-driven cost reductions [3] - Non-GAAP net profit forecasts for 2025, 2026, and 2027 are 3.3 billion RMB, 4.1 billion RMB, and 4.8 billion RMB respectively, with corresponding PE ratios of 17x, 14x, and 12x [3]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company's performance in Q4 2024 slightly exceeded expectations, with total revenue reaching 18.2 billion yuan, a year-on-year increase of 15%. Adjusted net profit was 7.2 billion yuan, also up 15% year-on-year [4][9] - The demand for recruitment is expected to recover in 2025, driven by the growth in blue-collar jobs and AI-related positions, with a significant increase in job postings related to AI [3][4] - The company anticipates adjusted operating profit to reach 3 billion yuan in 2025, supported by improved customer acquisition efficiency and cost reductions through AI [4] Financial Projections - Total revenue projections for the company are as follows: - 2023: 5,952 million yuan - 2024: 7,356 million yuan (24% YoY growth) - 2025: 8,397 million yuan (14% YoY growth) - 2026: 9,538 million yuan (14% YoY growth) - 2027: 10,580 million yuan (11% YoY growth) [1] - Adjusted net profit projections are: - 2023: 1,099 million yuan - 2024: 1,585 million yuan (44% YoY growth) - 2025: 2,275 million yuan (44% YoY growth) - 2026: 3,066 million yuan (35% YoY growth) - 2027: 3,747 million yuan (22% YoY growth) [1] - Non-GAAP net profit projections are: - 2023: 2,156 million yuan - 2024: 2,711 million yuan (26% YoY growth) - 2025: 3,332 million yuan (23% YoY growth) - 2026: 4,113 million yuan (23% YoY growth) - 2027: 4,786 million yuan (16% YoY growth) [1] Operational Efficiency - The company has improved customer acquisition efficiency, with adjusted sales expense ratio decreasing by 3.5 percentage points year-on-year. The adjusted operating profit margin increased to 36.1% [4] - The average monthly active users (MAU) for the BOSS Zhipin app reached 53 million in 2024, a 25% increase year-on-year, indicating strong user engagement [9]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's performance in Q4 2024 slightly exceeded expectations, and there is optimism for a recovery in recruitment demand in 2025 [1][4] - The contribution of blue-collar, lower-tier cities, and small enterprises to revenue continues to rise, with strong growth in AI-related job recruitment [3] - The company is expected to achieve an adjusted operating profit of approximately 3 billion yuan in 2025, driven by improved customer acquisition efficiency and cost reductions through AI [3][4] Financial Performance Summary - Total revenue for 2023 is projected at 5,952 million yuan, with a year-on-year growth of 32%. This is expected to increase to 7,356 million yuan in 2024, representing a 24% growth [1] - The net profit attributable to the parent company is forecasted to be 1,099 million yuan in 2023, with a staggering year-on-year growth of 925%, and is expected to reach 1,585 million yuan in 2024, a 44% increase [1] - Non-GAAP net profit is anticipated to grow from 2,156 million yuan in 2023 to 2,711 million yuan in 2024, reflecting a 26% increase [1] - The adjusted EPS is projected to rise from 4.76 yuan in 2023 to 5.98 yuan in 2024 [1] Operational Insights - The company achieved a gross margin that remained stable year-on-year, with an adjusted sales expense ratio decreasing by 3.5 percentage points [4] - The adjusted operating profit for Q4 was 6.59 billion yuan, accounting for 36.1% of revenue, which is a 3 percentage point increase year-on-year [4] - The average monthly active users (MAU) for the BOSS Zhipin app reached 53 million in 2024, a 25% year-on-year increase [4][9] Market Position and Future Outlook - The company is expected to continue gaining market share in 2025, supported by increased brand recognition and a robust two-sided network effect [4] - The recruitment market is showing signs of recovery, with historical highs in active user numbers and job postings following the Spring Festival [4][9]