20260521-招银国际-Inline_1Q26_results_revenue_growth_to_accelerate_on_resilient_recruitment_demand_5页_978kb

Kanzhun Limited (BZ US) 1Q26 Summary

Core Content

Kanzhun Limited, also known as Boss Zhipin, reported its first-quarter 2026 (1Q26) financial results, showing total revenue of RMB2.07bn, a 8% year-over-year (YoY) increase, and non-GAAP net income of RMB856mn, a 12% YoY rise. These results were in line with Bloomberg's consensus estimates. The company expects revenue growth to accelerate in 2Q26E, with a projected increase of 13-15% YoY to RMB2.38-2.42bn, driven by strong recruitment demand post the Chinese New Year (CNY).

Main Points

Revenue and Profit Growth

• Total Revenue (1Q26): RMB2.07bn (+8% YoY)
• Non-GAAP Net Income (1Q26): RMB856mn (+12% YoY)
• Adjusted Operating Profit Margin (1Q26): 39.4% (+3.4ppt YoY)
• Share Repurchases (YTD): 28mn shares (c.3% of total issued shares)

User and Customer Growth

• Total Paid Enterprise Customers (12M): 7.1mn (+11% YoY)
• Average Monthly Active Users (MAUs) (1Q26): 60.9mn (+6% YoY)
• Blue-collar Recruitment Revenue (1Q26): Over 40% of total revenue for the first time
• White-collar Recruitment Demand: Improved after CNY

AI Integration

• AI Tools Usage (1Q26): Over 10mn MAUs using AI tools
• AI-facilitated Closed-loop Recruitment Revenue (1Q26): c.RMB50mn
• AI Impact:
  • Reduced time from initial chat to recruitment conversion by 60%
  • Increased user retention to a record high since 2020
  • Boosted recruitment efficiency by 4 times in a pilot program, outperforming head hunters

Business Forecasts

• Revenue Forecast (FY26E): RMB9,360mn (+13-15% YoY in 2Q26E)
• Adjusted Net Profit Forecast (FY26E): RMB4,023mn
• Adjusted Net Margin (FY26E): 43.0% (expected to slightly decline to 42.9% in FY27E)

Key Information

Valuation

• Target Price: US$22.50 (down from US$24.00)
• Valuation Basis: 18x FY26E non-GAAP PE
• Current Price: US$14.07
• Price Target Upside: 59.9%

Financial Highlights

• Earnings Summary:
  • Revenue (RMB mn): FY24A: 7,356; FY25A: 8,268; FY26E: 9,360; FY27E: 10,283; FY28E: 11,201
  • Adjusted Net Profit (RMB mn): FY24A: 2,710.7; FY25A: 3,602.5; FY26E: 4,022.7; FY27E: 4,410.9; FY28E: 4,757.7
  • EPS (Adjusted) (RMB): FY24A: 5.96; FY25A: 7.77; FY26E: 8.55; FY27E: 9.37; FY28E: 10.01
  • P/S (x): FY24A: 6.1; FY25A: 5.4; FY26E: 4.8; FY27E: 4.4; FY28E: 4.0
  • P/E (x): FY24A: 28.4; FY25A: 16.6; FY26E: 12.3; FY27E: 12.0; FY28E: 10.8

Shareholding Structure

• Zhao Peng: 14.7%
• Tencent: 8.1%

Stock Performance

• 1-Month Return: 1.8% (Absolute) / -6.0% (Relative)
• 3-Month Return: -19.5% (Absolute) / -29.9% (Relative)
• 6-Month Return: -31.2% (Absolute) / -41.6% (Relative)

Market Cap and Cash Flow

• Market Cap (US$ mn): 6,620.0
• Net Cash from Operations (FY26E): RMB5,527mn
• Cash & Equivalents (FY26E): RMB6,405mn
• Cash at End of Year (FY26E): RMB6,405mn

Valuation Comparison

• CMBIGM vs. Consensus:
  • Revenue: CMBIGM is slightly higher than consensus by 0.6%
  • Gross Profit: CMBIGM is lower than consensus by 2.3%
  • Adjusted Net Profit: CMBIGM is lower than consensus by 3.4%
• Peer Comparison (Valuation):
  • Career International: P/E of 13
  • Liepin: P/E of 7
  • Recruit: P/E of 29
  • Average P/E: 16 (FY26E) / 14 (FY27E)

Analyst Recommendation

• Rating: BUY
• Reasoning: Despite a slight reduction in target price due to sector valuation decline, the company maintains strong adj. operating profit growth and attractive shareholder returns.
• Outlook: Management is optimistic about revenue acceleration for the remainder of FY26E due to sustained recruitment demand across sectors.

Conclusion

Kanzhun Limited is well-positioned to benefit from continued recruitment demand, supported by its deepening integration of AI, which enhances recruitment efficiency and user retention. The company's financial performance in 1Q26 was strong, and its business forecasts for FY26E remain positive. The valuation is based on a 18x non-GAAP PE, and the target price has been adjusted downward in line with the broader sector trends. The company is expected to maintain a solid margin profile and continue to deliver value to shareholders.