Kanzhun Limited launches $150 million share buyback

Published 29/08/2024, 13:18
Kanzhun Limited launches $150 million share buyback

BEIJING - KANZHUN LIMITED (Nasdaq: BZ; HKEX: 2076), the operator of BOSS Zhipin, China's leading online recruitment platform, has announced a new share repurchase program, signaling strong confidence in its ongoing growth trajectory. The board of directors has authorized the repurchase of up to $150 million of its shares, including American depositary shares, starting today for a 12-month period.

This recent initiative is in addition to an existing repurchase scheme initiated on March 20, 2024, which allows for the buyback of up to $200 million in shares. Cumulatively, these programs could see the company repurchasing shares worth a total of $350 million, which equates to 7.2% of its current market value, a percentage that stands out in the industry.

BOSS Zhipin is not only the largest online recruitment platform in China but also a forerunner in adopting the Direct Recruitment model, which is revolutionizing the country's online hiring landscape. The company has reported consistent improvement in operational efficiency and brand recognition, leading to significant strides in both operational and financial metrics.

On Wednesday, BOSS Zhipin reported its unaudited financial results for the second quarter, which ended June 30, 2024. The figures show a 28.8% year-over-year increase in total revenue, amounting to RMB1,917 million. The adjusted income from operations for the quarter was RMB660 million, a 52.1% rise from the previous year. The company also achieved a record-high adjusted operating margin, which grew by 5 percentage points compared to the same quarter last year.

User engagement on the platform has seen a substantial uptick, with average monthly active users climbing 25.2% year over year to 54.6 million in the second quarter of 2024. Similarly, the total number of paid enterprise customers for the 12-month period ending June 30, 2024, increased by 31.1% compared to the previous year.

Since March 27, 2024, the company has actively been repurchasing ordinary shares, with the total consideration reaching $88 million by early August. These repurchases reflect the management's strong belief in the company's capacity for sustainable growth. This information is based on a press release statement from Kanzhun Limited.

In other recent news, KANZHUN LIMITED, the operator of the renowned online recruitment platform BOSS Zhipin in China, has received approval from its board of directors for a new share repurchase program. The company plans to buy back up to $150 million of its shares, including American depositary shares, a move that signals confidence in its ongoing growth prospects. This new authorization will run concurrently with an existing program initiated earlier, which also permits the repurchase of up to $200 million of its shares. The methods of repurchase may vary, such as open market transactions or privately negotiated deals, depending on market conditions and regulatory guidelines. The board of directors at KANZHUN LIMITED will periodically review and adjust the share repurchase programs as necessary. These are the latest developments for KANZHUN LIMITED, underscoring its proactive approach to managing its share capital.

InvestingPro Insights

Kanzhun Limited (Nasdaq: BZ; HKEX: 2076), the powerhouse behind BOSS Zhipin, has been making waves in the investment community with its bold share repurchase programs. An analysis of real-time data from InvestingPro provides additional context to the company's financial health and market performance. With a current market capitalization of approximately $4.83 billion, Kanzhun Limited is asserting its presence in the market.

One of the standout InvestingPro Tips for Kanzhun Limited is the company's impressive gross profit margin, which stands at a remarkable 83.04% for the last twelve months as of Q2 2024. This figure not only reflects the company's ability to maintain a high level of profitability but also supports its capability to reinvest in growth initiatives such as the share repurchase program. Additionally, the company's liquid assets exceed its short-term obligations, highlighting a solid liquidity position which is reassuring for investors considering the company's financial stability.

InvestingPro Data metrics provide further insights into Kanzhun Limited's performance. The company's revenue growth was 35.44% for the last twelve months as of Q2 2024, indicating a robust expansion in its business operations. Moreover, the company's shares are trading near their 52-week low, with a price percentage of the 52-week high at 56.5%, suggesting a potential value opportunity for investors.

It's worth noting that Kanzhun Limited does not pay a dividend to shareholders, which aligns with its strategy to prioritize reinvestment in the company's growth. For investors seeking more comprehensive analysis, additional InvestingPro Tips are available, with a total of 13 tips listed on the InvestingPro platform, providing a deeper dive into Kanzhun Limited's market potential and investment profile.

Overall, the company's financials and recent market performance, as highlighted by InvestingPro, underscore the confidence reflected in its share repurchase initiative and suggest a positive outlook for Kanzhun Limited's future growth and profitability.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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