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Kanzhun Ltd Sponsored (BZ)
NASDAQ:BZ
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Kanzhun Ltd Sponsored
(NASDAQ:BZ)
Rating:78Outperform
Price Target:
$23.00
▲(2.50% Upside)
Positive Factors
Financial Performance
Kanzhun's online recruitment service revenue is forecast to increase, with an adjusted operating margin expected to improve from 31% to 41%, driven by enhanced operating leverage and efficiency.
Innovative Business Model
The company has developed a strong competitive moat through its innovative direct recruitment model, supported by extensive enterprise and MAU bases, as well as recruitment facilitation technology.
Market Leadership
Kanzhun is the largest online recruitment platform in China in terms of both revenue and MAUs in 2024, according to CIC and our estimates.
Negative Factors
Economic Sensitivity
Kanzhun is expected to be one of the major beneficiaries amid macro recovery, with its ROE and expanding margin profile making it more positively geared towards macroeconomic improvements.
Market Competition
The online recruitment market to grow at a CAGR of 10% over FY24-26E, driven by the rising online penetration rate.
Kanzhun Ltd Sponsored (BZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.20B
Dividend YieldN/A
Average Volume (3M)3.04M
Price to Earnings (P/E)39.5
Beta (1Y)1.31
Revenue Growth18.00%
EPS Growth39.90%
CountryUS
Employees5,688
SectorCommunication Services
Sector Strength90
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.24
Shares Outstanding410,282,700
10 Day Avg. Volume3,527,374
30 Day Avg. Volume3,043,088
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.65
Enterprise Value/Revenue0.87
Enterprise Value/Gross Profit1.04
Enterprise Value/Ebitda4.19
Forecast
1Y Price Target
$22.73Price Target Upside1.29% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Kanzhun Ltd Sponsored Business Overview & Revenue Model
Company DescriptionKanzhun Limited operates an online recruitment platform, BOSS Zhipin in the People's Republic of China. Its recruitment platform assists the recruitment process between job seekers and employers for enterprises, and corporations. The company was founded in 2013 and is headquartered in Beijing, the People's Republic of China.
How the Company Makes MoneyKanzhun Ltd makes money primarily through its recruitment services, where it charges employers for job postings, access to a vast pool of potential candidates, and advanced recruiting tools. The company offers various subscription packages and premium services that enhance the visibility of job listings and improve matchmaking efficiency. Additionally, Kanzhun Ltd generates revenue by providing value-added services such as resume optimization and professional branding for job seekers. The platform's success is bolstered by its extensive user base, strategic partnerships with companies across diverse sectors, and continuous investment in technology to enhance user experience and platform efficiency.
Kanzhun Ltd Sponsored Earnings Call Summary
Earnings Call Date:May 22, 2025
(Q1-2025)
| % Change Since: 25.36%|
Next Earnings Date:Aug 20, 2025
Earnings Call Sentiment Positive
The earnings call presented a largely positive outlook with strong revenue and net income growth, improved margins, and significant advancements in AI technology. User growth and engagement metrics were robust, and the company maintained a strong cash position. However, concerns persist regarding the tariff war and the cautious approach to AI monetization, which may limit potential revenue growth. Overall, the positive aspects significantly outweigh the concerns.Q1-2025 Updates
Positive Updates
Strong Year-on-Year Revenue Growth
GAAP revenue for the first quarter of 2025 reached RMB 1.92 billion, reflecting a 13% year-on-year increase.
Significant Net Income Increase
Net income increased by 112% year-on-year, reaching RMB 510 million in the first quarter.
User Growth and Engagement
The company added over 15 million verified new users, with monthly active users reaching 57.56 million, up 24% year-on-year.
Improvement in Operating Margin
Adjusted operating margin improved to 36%, up 13 percentage points year-on-year.
AI Technology Advancements
AI-powered tools like interview robots and recruitment assistants have shown promising results, improving efficiency and user experience.
Robust Cash Position
Net cash provided by operating activities reached RMB 1.0 billion, and the company's cash position totaled RMB 14.8 billion.
Negative Updates
Ongoing Tariff War Concerns
While the impact of the tariff war has not intensified, it remains a concern for the company and its effects on recruitment in export-related industries.
Limited AI Monetization
Despite advancements in AI technology, the company remains cautious in monetizing these features, potentially slowing revenue growth from AI innovations.
Company Guidance
In the first quarter of 2025, Kanzhun Limited demonstrated strong financial performance, achieving a GAAP revenue of RMB 1.92 billion, reflecting a 13% year-on-year increase. The company's net income surged by 112% year-on-year to RMB 510 million. Adjusted operating income was reported at RMB 690 million, with an adjusted operating margin of 36%, up 13 percentage points from the previous year. The company added over 15 million verified new users, with average verified monthly active users reaching 57.56 million, a 24% increase year-on-year. User growth was driven by a 45% increase in new blue-collar users, contributing to over 39% of revenue, and a 23% rise in revenue from Tier 3 and lower-tier cities. Moreover, the company saw a 12% year-on-year increase in paid enterprise customers, totaling 6.38 million. AI integration played a crucial role, with AI-powered tools enhancing recruitment efficiency and user engagement, contributing to a 25% increase in recruitment results for enterprise users utilizing AI agents. The company's strong cash position of RMB 14.8 billion supports its growth initiatives and potential shareholder returns. Looking ahead, Kanzhun Limited anticipates second-quarter revenues between RMB 2.05 billion and RMB 2.08 billion, representing a year-on-year growth of 7.0% to 8.5%.Kanzhun Ltd Sponsored Financial Statement Overview
Summary
Kanzhun Ltd shows strong financial performance with robust revenue growth, efficient cost management, and improved net profit margin. The balance sheet indicates financial stability with low debt, although return on equity could be improved. Cash flow generation is healthy, supporting ongoing operations and investments.Income Statement
Kanzhun Ltd has demonstrated robust revenue growth over the past years, with a significant increase from 2020 to TTM (Trailing-Twelve-Months). The gross profit margin has consistently been high, reflecting efficient cost management. Net profit margin has also improved, indicating a strong bottom line performance. The TTM EBIT and EBITDA margins are favorable, showcasing operational efficiency and profitability.85
Very Positive
Balance Sheet
The balance sheet reveals a very low debt-to-equity ratio, indicating strong financial stability and a conservative capital structure. The equity ratio is high, which suggests a solid financial foundation. However, there is room for improvement in return on equity, which, while positive, could be enhanced further to optimize shareholder returns.78
Positive
Cash Flow
Kanzhun Ltd displays a strong cash flow position with consistent growth in free cash flow. The operating cash flow to net income ratio is healthy, signifying effective cash generation from operations. Additionally, the free cash flow to net income ratio suggests efficient cash management, although ongoing investments should be monitored to ensure sustained liquidity.82
Very Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.36B | 5.95B | 4.51B | 4.26B | 1.94B |
| Gross Profit | 6.12B | 4.89B | 3.76B | 3.70B | 1.70B |
| EBITDA | 1.43B | 839.72M | 157.88M | -846.88M | -836.86M |
| Net Income | 1.58B | 1.10B | 107.25M | -1.07B | -937.79M |
Balance Sheet | |||||
| Total Assets | 19.31B | 17.94B | 14.83B | 13.64B | 5.08B |
| Cash, Cash Equivalents and Short-Term Investments | 14.68B | 12.91B | 13.21B | 12.23B | 4.53B |
| Total Debt | 302.13M | 280.09M | 295.03M | 310.90M | 135.93M |
| Total Liabilities | 4.35B | 4.51B | 3.19B | 2.97B | 7.38B |
| Stockholders Equity | 14.87B | 13.43B | 11.64B | 10.67B | -2.30B |
Cash Flow | |||||
| Free Cash Flow | 2.69B | 2.09B | 662.92M | 1.38B | 257.70M |
| Operating Cash Flow | 3.54B | 3.05B | 1.00B | 1.64B | 395.91M |
| Investing Cash Flow | -2.02B | -9.94B | -2.82B | -601.86M | 467.31M |
| Financing Cash Flow | -1.46B | -417.02M | -669.23M | 6.43B | 2.88B |
Kanzhun Ltd Sponsored Technical Analysis
Positive
22.44
Price Trends
18.87
Positive
17.80
Positive
16.39
Positive
Market Momentum
0.80
Negative
77.05
Negative
94.96
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BZ, the sentiment is Positive. The current price of 22.44 is above the 20-day moving average (MA) of 19.91, above the 50-day MA of 18.87, and above the 200-day MA of 16.39, indicating a bullish trend. The MACD of 0.80 indicates Negative momentum. The RSI at 77.05 is Negative, neither overbought nor oversold. The STOCH value of 94.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BZ.
Kanzhun Ltd Sponsored Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $10.20B | 39.49 | 12.47% | ― | 18.00% | 39.90% | |
78 Outperform | $1.81B | 8.10 | 50.61% | ― | 3.92% | 231.82% | |
61 Neutral | $3.54B | 19.89 | 12.75% | 6.11% | -6.95% | -41.84% | |
60 Neutral | $43.99B | 4.24 | -10.43% | 4.00% | 2.31% | -34.39% | |
54 Neutral | $1.89B | 47.85 | 31.50% | 4.56% | 2.40% | -75.66% | |
51 Neutral | $499.13M | 11.43 | -0.49% | 2.06% | 0.97% | -112.75% | |
44 Neutral | $358.61M | 225.24 | -2897.28% | ― | -16.20% | -222.75% |
* Communication Services Sector Average
Performance Comparison
BZ
Kanzhun Ltd Sponsored
22.44
8.34
59.15%
NSP
Insperity
52.61
-38.05
-41.97%
KELYA
Kelly Services
14.55
-5.20
-26.33%
RHI
Robert Half
36.66
-22.27
-37.79%
UPWK
Upwork
14.09
4.10
41.04%
ZIP
ZipRecruiter
4.34
-3.94
-47.58%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.