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Highlights

  • Kanzhun’s Q2 FY24 total revenues reached RMB 1,916.74 million, up 28.85% year-on-year.
  • Net profit for Q2 FY24 increased to RMB 417.25 million, a 34.77% rise over previous year.
  • Cash and cash equivalents grew by 40.41%, reaching RMB 3,472.39 million year-on-year.
  • For Q3 2024, the company anticipates revenues between RMB 1.90-1.92 billion.

Kanzhun Ltd (NASDAQ:BZ) is a China-based holding company that offers online recruitment services. It connects job seekers and businesses through its BOSS Zhipin app, enhancing user experience throughout the recruitment process.

In Q2 FY24, the company reported total revenues of RMB 1,916.74 million, a significant increase of 28.85% compared to RMB 1,487.62 million in Q2 FY23 (pcp). This growth was driven by higher revenue from online recruitment services targeted at enterprise customers and an increased number of users. Additionally, net profit rose to RMB 417.25 million, up 34.77% from RMB 309.60 million in pcp, despite rising income tax expenses and total operating costs.

Operating cash flows also improved, reaching RMB 868.56 million, a 13.73% increase from RMB 763.71 million in pcp. This boost was attributed to higher net income and favorable changes in net working capital. Furthermore, cash and cash equivalents grew by 40.41%, totaling RMB 3,472.39 million compared to RMB 2,472.96 million a year earlier. This increase was mainly due to cash inflows from operating activities, though it was partially offset by cash outflows from investing and financing activities.

Recent Business Update

On August 29, 2024, the company announced that its board of directors had approved a new share repurchase program. This program will be effective for 12 months and allows for the repurchase of up to US$150 million in shares, including American depositary shares. This decision reflects confidence in the company's future growth. The new program will run alongside the existing program, which started on March 20, 2024. That program also allows for the repurchase of up to US$200 million in shares for 12 months.

Company Outlook

For Q3 2024, the company expects total revenues to be between RMB 1.90-1.92 billion. This represents an anticipated year-on-year growth of about 18.2% to 19.5%. The projection is based on the company’s current evaluation of market and operational conditions in China. However, it is subject to change and cannot be precisely predicted at this time.

Top 10 Shareholders

The top 10 shareholders of BZ collectively hold about 26.602% of the total shares, indicating concentrated ownership. Dragoneer Investment Group, LLC, is the largest shareholder with approximately 3.93% holding. SC China Holding Ltd follows with about 3.53% stake.

Price Information

The stock price of Kanzhun has appreciated around 18.84% in the past month. However, it has declined by around 20.53% in the past six months. The stock’s 52-week low and high prices are USD 10.57 and USD 22.74, respectively. The stock’s closing price is USD 14.92 as of 22 Oct 2024.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is October 22, 2024. The reference data in this report has been partly sourced from EODHD/Others.