Morningstar

Kanzhun Ltd ADR BZ

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Stock XNAS Rating as of
$17.46 +0.28 (1.63%)
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As of Cboe BZX Real-Time Price Open

Company Report

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Boss Zhipin Earnings: Lowering Fair Value by 40%; Scalability, Macro, and Profitability Concerns

Kai Wang

We lower our fair value estimate for Boss Zhipin to $12 per ADR (HKD 46.90 per share) from $20 (HKD 78.20) despite the company reporting second-quarter 2024 revenue of CNY 1.9 billion, which represented a 29% increase year on year. We thought the company performed well during the second quarter with robust revenue growth and operating margin expansion of 640 basis points year on year, along with a 31% increase year on year in paying customers. However, the company had a negative outlook that suggested a lack of visibility due to macroeconomic soft demand for recruitment services and structural problems with long-term domestic scalability.

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Price vs Fair Value

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BZ is trading at a 877% premium.
Price
$17.18
Fair Value
$39.00
Uncertainty
Very High
1-Star Price
$98.00
5-Star Price
$8.00
Economic Moat
Kvr
Capital Allocation
Blsvgqpk

Bulls Say, Bears Say

Bulls

Record-high unemployment in China could accelerate the monetization process as there are more job seekers than jobs at enterprises.

Bears

China’s recovery slowdown could mean that SMEs are less willing to hire more workers.

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News

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Trading Information

Previous Close Price
$17.18
Day Range
$17.41–19.12
52-Week Range
$10.58–22.73
Bid/Ask
$17.45 / $17.46
Market Cap
$7.74 Bil
Volume/Avg
9.7 Mil / 4.8 Mil

Key Statistics

Price/Earnings (Normalized)
21.58
Price/Sales
8.25
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Total Yield
0.14%

Company Profile

Kanzhun's Boss Zhipin job platform connects job seekers and employers. Boss Zhipin is China’s largest online recruitment platform based on average number of monthly active users, or MAU, and was established in 2014. Kanzhun earns revenue by providing services to enterprise customers primarily through its mobile app, which promotes engagement between recruiters and workers and operates on a recommendation basis powered by artificial intelligence. The platform specializes in transportation, logistics, construction, and service-based industries. About 85% of the companies looking to hire are small and medium-size enterprises. Its main competitors are 58.com, 51job, and Zhilian Zhaopin. Tencent has a 9.2% stake in Kanzhun.
Sector
Communication Services
Industry
Internet Content & Information
Stock Style Box
Large Growth
Total Number of Employees
5,429
Website
https://www.zhipin.com

Competitors

Valuation

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Metric
BZ
00700
Price/Earnings (Normalized)
 21.5819.37
Price/Book Value
 3.774.37
Price/Sales
 8.256.09
Price/Cash Flow
 15.9916.44
Price/Earnings
BZ
00700

Financial Strength

Metric
BZ
00700
Quick Ratio
 3.451.17
Current Ratio
 3.581.35
Interest Coverage
 —16.38
Quick Ratio
BZ
00700

Profitability

Metric
BZ
00700
Return on Assets (Normalized)
 14.52%12.28%
Return on Equity (Normalized)
 18.93%23.79%
Return on Invested Capital (Normalized)
 13.61%15.34%
Return on Assets
BZ
00700

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