According to Zhitudong Finance APP, GTJA has released a research report stating that it gives Kanzhun-W (02076) a "Shareholding" rating. The company maintains a continuous increase in profit margin through efficiency improvements and a focus on monetizable projects. Also, based on its matching efficiency advantage, the company's market share continues to increase, maintaining the adjusted Net income for the years 2024/25/26 at 2.801/3.517/4.202 billion yuan, with a Target Price of 64.11 Hong Kong dollars. The company’s performance meets expectations, with a slowdown in growth, but its market share continues to increase, and the profit margin will continue to climb driven by economies of scale.

GTJA's main opinions include:

Performance Summary:

For Q3 2024, the company's revenue is 1.911 billion/+19%, cash revenue growth is about 10%, GAAP Net income is 0.422 billion/+36.22%, adjusted Net income is 0.718 billion/+26.42%, and the adjusted Net income margin is 24.5%.

Revenue growth continues to slow down.

① Revenue growth continues to slow down quarter by quarter, facing pressure, but this is within expectations, as the company has communicated sufficiently before. The fluctuations in enterprise demand due to the macro environment are the main reason. ② The number of users continues to increase, but mainly consists of job seekers, so the C/B ratio is expected to remain under pressure. Looking at the user structure, demand from key KA enterprises is more stable during economic fluctuations, thus the ARPPU grows simultaneously. ③ The revenue growth rate for Q4 2024 is expected to be 13.6-14.6%, and revenue growth in 2025 is expected to be +10%, with profit margins continuing the upward trend driven by economies of scale and efficiency improvements.

Focus on projects with monetization capabilities and profit margins, which still have room for improvement.

Under growth pressure, the company continues the strategy from the previous quarter: 1) maintaining the trend of continuous improvement in profit margins through cost reduction and efficiency enhancement; 2) focusing on strategies that have short-term monetization capabilities. ②Reflected in the Earnings Reports, there is a significantly more restrained sales investment and a rapidly decreasing R&D expense ratio. However, the short-term cost of personnel adjustments has led to an increase in the management expense ratio. ③Currently, Kanzhun has transitioned from a logic of counter-cyclical high growth to a stage of stable profit release. The future growth of Kanzhun comes from: 1) compared to peers, the company still has a relatively obvious matching efficiency advantage and brand recognition in blue-collar and key account sectors, thus being in a stage of market share increase. 2) Going abroad and internationalization will become important increments. 3) Under policy catalysis, the demand for hiring driven by an improving economy is recovering.