Kanzhun Limited: Services Beyond Just Recruitment To Drive Growth

Feb. 10, 2023 6:10 AM ETKanzhun Limited (BZ) StockBZ
Principal Investor
107 Followers

Summary

  • Kanzhun Limited has established a dominant position in job recruitment apps with its industry-leading recommendation engine.
  • BZ operates in China’s recruitment industry which is estimated to grow at a CAGR of ~21%, reaching ~RMB 446bn by 2025.
  • I remain bullish on the company’s medium to long-term prospects given its unique positioning, growth potential, and highly profitable business model (20%+ Non-GAAP net margins already).
  • My December ’23 price target of $33 is derived by applying a 12x EV/S multiple to my FY23E revenue estimates.

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Thesis

Kanzhun Limited (NASDAQ:BZ) has established a dominant position in job recruitment apps with its industry-leading recommendation engine, but I am most excited about its ~4mn-strong enterprise customer base, which could be exploited for growth areas beyond recruitment. I remain bullish on

This article was written by

107 Followers
I focus on high-growth plays and use fundamental analysis to identify investment opportunities. I have over 10 years of experience as a sell-side analyst and have extensively covered small-cap stocks mainly in the tech and healthcare sector.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of BZ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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