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On Tuesday, Jefferies updated its financial outlook on Kanzhun Ltd. (NASDAQ: BZ), raising the price target to $20.00 from the previous $17.00, while reiterating a Buy rating on the company’s shares. Currently trading at $17.97, the stock has delivered an impressive 26.16% return year-to-date. The adjustment follows Kanzhun’s recent release of its fourth-quarter results and subsequent management commentary during a conference call.
During the earnings call, Kanzhun’s management discussed several positive trends that have emerged since the Chinese New Year (CNY). They pointed out that operating metrics, including the number of active users, job listings, and new postings, had reached new highs. The company’s strong operational performance is reflected in its robust 30.4% revenue growth and industry-leading 83.12% gross margin. Additionally, the cost-to-benefit (C/B) ratio has been showing continuous improvement since November of the previous year.
The research firm highlighted Kanzhun’s advantageous position in the job recruitment market, particularly regarding artificial intelligence (AI). Analysts at Jefferies believe that Kanzhun is poised to capitalize on current trends by meeting the evolving demands of both job seekers and recruiters through its AI-driven platforms.
Looking ahead to 2025, Jefferies anticipates that Kanzhun will see further margin improvements. This expectation is based on the company’s ability to leverage operating efficiencies and the continued integration of AI into its services. The firm’s analysts underscored their confidence in Kanzhun’s growth trajectory by maintaining a Buy rating on the stock. According to InvestingPro, the company maintains a "GREAT" financial health score and appears undervalued based on its Fair Value analysis. Investors can access detailed valuation metrics and additional insights through InvestingPro’s comprehensive research report.
In other recent news, Changjin Limited reported a strong financial performance for the fourth quarter of 2024, with revenue increasing by 15% year-over-year to RMB 1.82 billion. The company’s full-year revenue also saw a substantial rise of 24%, reaching RMB 7.36 billion. Changjin’s adjusted net income for the fourth quarter was RMB 720 million, with a full-year total of RMB 2.71 billion, demonstrating a 26% increase year-over-year. The company improved its gross margin to 83.1%, up 0.9% from the previous year, and saw a significant rise in adjusted operating income by 41% year-over-year to RMB 2.32 billion.
Changjin Limited’s growth was fueled by innovations in artificial intelligence, particularly within its BOSS JITING app, which contributed to an increase in its user base. The company served 225 million users and 16.6 million enterprises in 2024. Looking ahead, Changjin forecasts first-quarter 2025 revenue between RMB 1.9 billion and RMB 1.92 billion, indicating 11.5% to 12.7% growth compared to the previous year. The company aims to grow its user base by over 35 million in 2025 and targets a non-GAAP operating profit of RMB 3 billion, a 30% increase from the previous year.
Despite macroeconomic challenges, Changjin’s financial strategy remains focused on securing high-quality growth and expanding its AI capabilities. The company also repurchased approximately $229 million worth of shares in 2024, reflecting confidence in its long-term growth potential. As part of its strategic initiatives, Changjin continues to invest in AI applications and services to enhance user experience and operational efficiency.
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