KANZHUN LIMITED Repurchased Ordinary Shares Continuously Over the Past Week, Total of USD44 Million of Shares Bought Back Under Current Repurchase Program

Rhea-AI Summary

KANZHUN , operator of China's largest online recruitment platform BOSS Zhipin, has repurchased over 2.12 million ordinary shares worth USD15.8 million in the past week. Since March 27, 2024, the company has bought back approximately 5 million shares totaling USD44.0 million. BOSS Zhipin reported strong Q1 2024 results with revenues reaching RMB1,703.8 million, up 33% year-over-year. The company's adjusted net income increased by 117% to RMB530.7 million. For the full year 2023, BOSS Zhipin achieved revenue of RMB5.95 billion, up 32% year-on-year, with an adjusted operating margin of 27%. The ongoing share repurchases reflect management's confidence in the company's long-term development and market-leading position.

Positive

• Repurchased 2.12 million shares worth USD15.8 million in the past week
• Total share buyback of USD44.0 million since March 27, 2024
• Q1 2024 revenues increased 33% YoY to RMB1,703.8 million
• Q1 2024 adjusted net income grew 117% YoY to RMB530.7 million
• Full year 2023 revenue up 32% YoY to RMB5.95 billion
• 2023 adjusted operating margin of 27%
• Market-leading position as largest online recruitment platform in China

Negative

• None.

Insights

Financial Analyst

KANZHUN 's recent share repurchase activity signals a strong vote of confidence from management in the company's future prospects. Over the past week, the company bought back $15.8 million worth of shares, bringing the total repurchase to $44 million over the last four months. This aggressive buyback strategy typically indicates that management believes the stock is undervalued.

The company's Q1 2024 financial results further support this confidence. Revenue grew by 33% year-over-year to RMB1,703.8 million, while adjusted net income surged by 117% to RMB530.7 million. These figures demonstrate robust growth and improving profitability.

For the full year 2023, KANZHUN achieved an impressive adjusted operating margin of 27%, with adjusted operating income skyrocketing by 191% year-over-year to RMB1.64 billion. This exceptional margin expansion suggests strong operational efficiency and scalability in the company's business model.

The ongoing share repurchases, combined with the solid financial performance, paint a picture of a company that's not only growing rapidly but also generating significant cash flow. This financial strength positions KANZHUN well for future investments in technology and market expansion, potentially further solidifying its leadership in China's online recruitment market.

Tech Expert

KANZHUN's success can be largely attributed to its innovative Direct Recruitment Model and advanced technology stack. The company's mobile-native platform leverages big data and proprietary recommendation algorithms to facilitate instant, direct communication between recruiters and job seekers. This approach represents a significant departure from traditional job boards and recruitment agencies.

The effectiveness of KANZHUN's technology is evident in its financial performance. The 33% year-over-year revenue growth suggests that the platform is gaining traction among both job seekers and employers. Moreover, the substantial increase in adjusted net income (117% year-over-year) indicates that the company is successfully monetizing its user base while keeping costs under control.

KANZHUN's focus on mobile-first design is particularly noteworthy in the context of China's mobile-centric internet ecosystem. This approach likely contributes to higher user engagement and more frequent interactions on the platform, potentially leading to better matching outcomes and higher customer satisfaction.

Looking ahead, KANZHUN's strong financial position could allow for increased investment in artificial intelligence and machine learning capabilities. These technologies could further enhance the accuracy of job matches, improve user experience and ultimately strengthen the company's competitive moat in the online recruitment space.

Market Research Analyst

KANZHUN's performance must be viewed in the context of China's evolving labor market. As the world's second-largest economy continues its transition towards a more service and technology-oriented model, the demand for efficient, tech-driven recruitment solutions is likely to grow.

The company's claim of being the largest online recruitment platform in China is significant. In a market known for its winner-take-all dynamics, especially in tech sectors, this leadership position could translate into sustained competitive advantages and network effects. As more job seekers and recruiters join the platform, its value proposition strengthens for both sides of the market.

However, it's important to note potential challenges. China's economic growth has been slowing and recent regulatory crackdowns on tech companies have created uncertainty in the sector. While KANZHUN's focus on recruitment might insulate it somewhat from these pressures, investors should monitor these macro trends closely.

The company's aggressive share repurchase program, totaling $44 million over four months, suggests management sees significant upside potential in the stock. This could be interpreted as a bullish signal, especially considering the company's strong financial performance and market position.

Overall, KANZHUN's robust growth, technological edge and market leadership position it well to capitalize on the ongoing digitalization of China's recruitment industry. However, investors should remain vigilant about potential macroeconomic headwinds and regulatory risks in the Chinese tech sector.

BEIJING, July 26, 2024 (GLOBE NEWSWIRE) -- KANZHUN LIMITED (“BOSS Zhipin” or the “Company”), a leading online recruitment platform in China, recently announced that the Company repurchased over 2.12 million ordinary shares with a total value of USD15.8 million for the past week. Over the past four months since March 27, 2024, the Company has repurchased approximately 5 million ordinary shares with a total value of USD44.0 million.

BOSS Zhipin is the largest online recruitment platform in China. Founded in 2014, BOSS Zhipin is a pioneer in introducing a next-generation Direct Recruitment Model, which is transforming China’s online recruitment industry. The mobile-native product promotes instant direct communication between recruiters and job seekers and delivers accurate matching results through its proprietary recommendation algorithms powered by big data insights.

Benefiting from the unique business model and strong technology capability, BOSS Zhipin continuously delivered solid performance. On May 21, 2024, the Company announced its unaudited financial results for the quarter ended March 31, 2024. Revenues reached RMB1,703.8 million in the first quarter of 2024, an increase of 33% from RMB1,277.5 million for the same quarter of 2023. Adjusted net income remained healthy, totaled RMB530.7 million, an increase of 117% from RMB 245.0 million for the same quarter of 2023.

In the full year 2023, the Company achieved a revenue of RMB 5.95 billion, up by 32% year-on-year. Excluding share-based compensation expenses, the adjusted net income for the year reached RMB 2.16 billion. Furthermore, excluding other income, such as wealth management income, the adjusted operating income for 2023 was RMB 1.64 billion, reflecting a remarkable 191% year-on-year increase. This resulted in a 27% adjusted operating margin.

BOSS Zhipin’s performance underscores its robust profitability capability, growth potential, and market-leading position. The Company’s ongoing repurchases reflect the management's long-term confidence in its development.

FAQ

How many shares has KANZHUN (BZ) repurchased in the past week?

KANZHUN has repurchased over 2.12 million ordinary shares worth USD15.8 million in the past week.

What is the total value of shares repurchased by KANZHUN (BZ) since March 27, 2024?

Since March 27, 2024, KANZHUN has repurchased approximately 5 million ordinary shares with a total value of USD44.0 million.

What was KANZHUN 's (BZ) revenue growth in Q1 2024?

KANZHUN 's revenues reached RMB1,703.8 million in Q1 2024, representing a 33% increase from RMB1,277.5 million in Q1 2023.

What was KANZHUN 's (BZ) adjusted net income for Q1 2024?

KANZHUN 's adjusted net income for Q1 2024 was RMB530.7 million, an increase of 117% from RMB245.0 million in Q1 2023.

What was KANZHUN 's (BZ) revenue for the full year 2023?

KANZHUN achieved a revenue of RMB5.95 billion for the full year 2023, up by 32% year-on-year.