KANZHUN LIMITED, an online recruitment platform, officially launched on the Nasdaq market yesterday under the ticker BZ with an offering price of $19 / ADS, at the top of the proposed range.

In the recent context of Waterdrop Inc., Energy Monster, Zhihu Inc., No. 1 High School Education, Onion Global and other Chinese stocks listed on the stock market, KANZHUN LIMITED opened at US $33.50, up 76.3% over the issue price, and closed at US $37.2. up 95.79% over the issue price; in terms of closing price, KANZHUN LIMITED's market capitalization is 14.878 billion US dollars, which exceeds iQIYI, Inc. 's market value and is equivalent to two Zhihu Inc..

And its colleague Big Brother 51job Inc closed with a market capitalization of only 4.994 billion US dollars yesterday, that is to say, three 51job Inc just caught up with one KANZHUN LIMITED. Another competitor closed yesterday with a market capitalization of only HK $11.246 billion (US $14.4961). If you just look at the market capitalization, it is equivalent to 10 hunters = 1 KANZHUN LIMITED.

The question is, online recruitment has not been a tuyere industry, Zhaopin recruitment, 51job Inc, Liepin in the capital market treatment is also very general, why KANZHUN LIMITED is so popular? Is it really that good?

A high-margin business

1 KANZHUN LIMITED = 3 51job Inc = 10 hunters, which sounds unscientific. Judging from the data disclosed in KANZHUN LIMITED's prospectus, the main difference between him and others lies in "high growth".

According to the prospectus, KANZHUN LIMITED's revenue in the first quarter of 2019, 2020 and 2021 was 999 million yuan, 1.944 billion yuan and 789 million yuan respectively, with revenue growth of 94.7% in 2020 and 179% in the first quarter of 2021.

Although the recruitment activities of most companies were delayed due to the domestic epidemic in the first quarter of 2020, resulting in low revenue in the first quarter of last year, overall, the first quarter of this year still reflected a high-speed rebound.

In terms of the number of users, KANZHUN LIMITED's average monthly active users (MAU) in 2019, 2020 and the first quarter of 2021 were 11.5 million, 19.8 million and 24.9 million respectively, with year-on-year growth rates of 72.2% in 2020 and 71.7% in the first quarter of 2021. Among them, the company's MAU statistics caliber includes the sum of job-hunting users (C-side) and enterprise-side (B-side) users.

In terms of the number of paying enterprise users, the number of paid households in the past 12 months in 2019, 2020 and the first quarter of 2021 was 1.24 million, 2.23 million and 2.89 million respectively, an increase of 80.1% and 120%, respectively. It is precisely due to the rapid growth of C-end and B-end MAU and the rapid growth of the number of paying enterprises, it finally leads to the rapid increase of the overall revenue of the company.

In addition to the rapid growth in revenue, I have to sayOnline recruitment is an industry with high profit margins.

KANZHUN LIMITED's gross profit in 2019, 2020 and the first quarter of 2021 was 861.704 billion yuan and 682 million yuan respectively, during the reporting period.The gross profit margin is more than 85%.Even the recognized gross margin level of profitable games and advertisements in the Internet field is difficult to match.

However, despite the company's extremely high gross profit level, KANZHUN LIMITED has been in a state of loss during the reporting period.

The company's net losses under Non-GAAP in 2019, 2020 and the first quarter of 2021 were 468 million, 285 million and 128 million yuan respectively, with net loss rates of 46.8%, 14.6% and 16.2%, respectively.

The company's continued losses are mainly due to long-standing high sales and marketing costs, which are directly related to the characteristics of the recruitment industry itself-rigid demand but low frequency. It is precisely because of this characteristic that the recruitment industry has to invest in advertising for a long time and continuously to make itself "keep warm" in terms of users.

For KANZHUN LIMITED, it is in a period of rapid expansion, so in addition to the conventional advertising investment, customer acquisition expenditure also accounts for a large proportion, which directly leads to the high rate of marketing and market expenses.

Can you ignite Chinese stocks?

In any case, KANZHUN LIMITED is recognized by the capital market.

51job Inc is still the big brother in the field of online recruitment, with a total income of 3.689 billion yuan in 2020, less than twice that of KANZHUN LIMITED, while the same listed company's annual revenue in 2020 was 1.87 billion yuan, only slightly less than KANZHUN LIMITED.

But at present, 51job Inc and Xianpin have a market capitalization of about US $5 billion and US $1.5 billion in the secondary market, far below KANZHUN LIMITED's market capitalization of more than US $10 billion on the first day of trading.

This sudden "favor" may come from KANZHUN LIMITED's continued breakthrough growth rate-KANZHUN LIMITED's current revenue growth rate is much higher than 51job Inc and Hunting, which means more possibilities in the future.

Chinese stocks have not had good news for too long. Perhaps KANZHUN LIMITED's first-day performance can bring some confidence to the market.

"I believe that after KANZHUN LIMITED's successful listing in the United States, he will have a long-term performance of excellent and stable growth," said Hao Yusheng, chief representative of the NASDAQ Stock Exchange in China. KANZHUN LIMITED's successful listing is a great excitement to the recent listing process of Chinese-listed stocks affected by market fluctuations.