高盛-看準(zhǔn)科技

29August2024|1:42AMHKT

KanzhunLtd.(BZ)

阝uv

EarningsReview:Intactuserpenetration/marginupsidestory,yetloweredrevenueoutlookontop-downmonetizationpressure;Buy

BZ12mPriceTarget:$19.40Price:$13.94Upside:39.2%

Kanzhun’ssharepricecorrectedsharplybyc.-20%(vs.KWEB-3%)postitslargelyin-line2Q24results(FirstTake),withthe2024EP/Emultiplecontractingfrom17xtoc.13xagainstlargelyunchanged

EPS,or10x2024EEV/FCF.Wethinktheweaknesswasmostlyduetosofter3Q24revenueguidanceof19%yoyatthemidpoint,whichfalls2-3%belowGSeandVisibleAlphaconsensuslikelyresulting

from1)softercashbillingsin3Q24Eand2)mixshiftofcashbillingsbetweenSMEsandlargeenterpriseswhichleadstoalonger

revenuerecognitionperiodonaverage.

Admittedly,China’sdeterioratedmacroenvironmenthasweighed

onmonetizationcapabilitiesofKanzhuninthatenterpriseusers’

willingnesstopaytorecruittalents(especiallyamongSMEsandforwhite-collarjobs)isloweredagainstalooserjobmarketplace.We

thinkthesharepricereactionmayhavebeenoverdonegiven1)stillrapidusergrowthe.g.total/enterpriseMAUs+25%/17%yoyin2Q24,asoneofthefastestgrowingChinainternetplatformsintermsofuserpenetration;2)highoperatingleveragewithclearmarketingexpensesavingsandmanagementcommitmentto

_

R&D/G&Aexpensecontrol;wekeep2024Enetpro?tforecastsatRmb2.6bn+largelyunchangedandmanagementreiterated2024Enon-GAAPoperatingpro?tguidanceatRmb2.3bn;3)potentialtotapintonewlegsofgrowthleveragingitsindustry-leading

recommendationandmatchingalgorithms,includingblue-collar

manufacturingandoverseasmarketse.g.blue-collarmanufacturingfocusedHailuoProjectamountingtoc.Rmb45mnor2%ofrevenuein2Q24,andpossiblesynergieswiththeearlieracquiredW.D.(to

bedisclosednextquarteraspermanagement);4)shareholder

returncommitmentleadingto4-6%shareholderreturnyieldp.a.,outofwhich4%isbasedontheUS$200mnrepurchase

programwiththecurrentrunrate(c.US$88mnbuybacksinceMar)

TimothyZhao

+852-2978-2673|timothy.zhao@GoldmanSachs(Asia)L.L.C.

RonaldKeung,CFA

+852-2978-0856|ronald.keung@GoldmanSachs(Asia)L.L.C.

EuniceLiu

+852-2978-7472|eunice.liu@GoldmanSachs(Asia)L.L.C.

KeyData

Marketcap:$6.4bnEnterprisevalue:$4.3bn3mADTV:$66.2mn

chinachinalnternetVerticals

M&ARank:3Leasesincl.innetdebt&EV?:yes

GSForecast

Revenue(Rmbmn)New

Revenue(Rmbmn)OldEBITDA(Rmbmn)

EPS(Rmb)New

EPS(Rmb)Old

P/E(X)P/B(X)

Dividendyield(%)CROCI(%)

EPS(Rmb)

12/235,952.0

5,952.01,896.7

4.78

4.7825.8 4.1NM35.0

3/24

1.18

12/24E7,398.1

7,512.12,677.8

5.76

5.7817.2 2.8NM30.7

6/24

1.57

12/25E8,482.9

8,929.53,373.5

6.75

7.0014.7 2.4NM33.6

9/24E

1.45

12/26E9,403.0

10,232.93,780.2

7.41

8.0613.4 2.1NM35.2

12/24E

1.56

GSFactorPro?le

Growth

FinancialReturns

Multiple

Integrated

percentile20th40th60th80th100th

BZrelativetoAsiaex.JapancoverageBZrelativetochinalnternetVerticals

Source:Companydata,GoldmanSachsResearchestimates.Seedisclosuresfordetails.

GoldmanSachsdoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,

investorsshouldbeawarethatthe?rmmayhaveacon?ictofinterestthatcouldaffecttheobjectivityofthis

report.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.ForRegACcerti?cationandotherimportantdisclosures,seetheDisclosureAppendix,orgoto

/research/hedge.html.Analystsemployedbynon-USaf?liatesarenotregistered/quali?edasresearchanalystswithFINRAintheU.S.

GoldmanSachs

KanzhunLtd.(BZ)

阝uvRatingsinceNov14,2022

Ratios&Valuation

P/E(X)P/B(X)

FCFyield(%)

EV/EBITDAR(X)

EV/EBITDA(excl.leases)(X)CROCI(%)

ROE(%)

Netdebt/equity(%)

Netdebt/equity(excl.leases)(%)Interestcover(X)

Daysinventoryoutst,salesReceivabledays

DayspayableoutstandingDuPontROE(%)

Turnover(X)Leverage(X)

Grosscashinvested(excash)(Rmb)Averagecapitalemployed(Rmb)

BVPS(Rmb)

12/23

25.8 4.1 3.9 21.5 21.3 35.0 17.2(96.1)

(98.2)

0.8146.7 16.10.3

1.39,312.26,422.629.75

12/24E

17.2 2.8 5.2 10.9 10.7 30.7 18.0(93.0)

(95.5)

1.4173.8 16.5 0.41.3

10,409.911,259.434.92

12/25E

14.7 2.4 6.8 7.9 7.7 33.6 17.8(93.7)

(96.0)

1.9146.0 16.3 0.31.3

10,979.911,603.041.31

12/26E

13.4 2.1 7.9 6.2 6.135.2 16.6(95.1)

(97.1)

1.9146.215.3

0.3 1.311,400.2

,

11598.6

48.37

Growth&Margins(%)

12/2312/24E12/25E12/26E

Totalrevenuegrowth

EBITDAgrowthEPSgrowth

DPSgrowth

EBITmargin

EBITDAmargin

Netincomemargin

10.812.1 9.7NM34.940.236.9

31.9169.9170.0 NM27.531.936.2

14.726.017.2NM34.539.837.0

24.3 41.2 20.6(100.0) 31.4 36.235.8

PricePerformance

BZ($)

25.0

22.5

20.0

17.5

15.0

12.5

NASDAQComposite

22,000

20,000

18,000

16,000

14,000

12,000

Apr-24

3m

(34.3)%(37.4)%

Jul-24

Oct-23Jan-24

12m(2.5)%

(25.4)%

Absolute

Rel.totheNASDAQComposite

6m(10.6)%(19.3)%

Source:FactSet.Priceasof27Aug2024close.

KanzhunLtd.(BZ)

IncomeStatement(Rmbmn)

12/2312/24E12/25E12/26E

Totalrevenue

costofgoodssoldSG&A

R&D

otheroperatinginc./(exp.)EBITDA

Depreciation&amortizationEBIT

Netinterestinc./(exp.)

lncome/(loss)fromassociates

Pfit

provisionfortaxesMinorityinterest

preferreddividends

Net。inc.。(pre-exceptionaIs)post-taxexceptionals

Net。inc.。(post-exceptionaIs)

EPS。(basic,。pre-except)。(Rmb)

EPS。(diIuted,。pre-except)。(Rmb)EPS。(basic,。post-except)。(Rmb)EPS。(diIuted,。post-except)。(Rmb)DpS(Rmb)

Div.payoutratio(%)

5,952.0(1,013.5)(2,211.2)(1,124.8) 35.4 1,896.7 (258.8) 1,637.9259.4

--

2,278.8(122.6)

--

--

2,156.2(1,057.0)

1,099.2

4.964.782.532.440.6513.1

7,398.1(1,195.9)(2,542.5)(1,370.9) 31.12,677.8(357.9)

2,319.9216.6

--

2,934.7(301.4)

16.7

--

2,650.0(1,192.1)

1,457.9

5.985.763.293.17

--

0.0

8,482.9(1,348.5)(2,734.7)(1,506.3)

31.13,373.5 (448.9)

2,924.6263.4

--

3,553.2(426.4)

10.0

--

3,136.9(950.3)

2,186.5

7.006.754.884.71

--

0.0

9,403.0(1,491.1)(3,034.8)(1,624.3)

31.13,780.2 (496.3)

3,283.9306.9

--

3,956.1

(494.5)

6.0

--

3,467.6(852.3)

2,615.37.677.415.785.59

--

0.0

BalanceSheet(Rmbmn)

12/2312/24E12/25E12/26E

cash&cashequivalentsAccountsreceivable

lnventory

othercurrentassets

Totalcurrentassets

NetPP&E

Netintangibles

Totalinvestments

otherlong-termassets

Totalassets

Accountspayableshort-termdebt

short-termleaseliabilitiesothercurrentliabilities

Totalcurrentliabilities

Long-termdebt

Long-termleaseliabilitiesotherlong-termliabilities

Totallong-termliabilitiesTotalliabilities

Preferredshares

Totalcommonequity

Minorityinterest

Totalliabilities&equity

Netdebt,adjusted

2,473.016.7

--

10,883.4

13,373.0

2,076.18.10.04.0

17,940.0

629.2

--

155.0

3,573.1

4,357.4

--

125.1

153.5

4,510.9

13,429.2

--

17,940.0

(2,473.0)

4,499.940.5

--

10,963.4

15,503.8

2,721.9

280.10.04.0

20,988.7

509.8

--

220.6

3,989.3

4,719.7

--

178.0

206.4

4,926.1

16,062.5

--

20,988.7

(4,499.9)

7,546.046.5

--

11,040.0

18,632.5

3,131.7

280.10.04.0

24,527.1

568.9

--

240.5

4,301.4

5,110.8

--

198.5

226.9

5,337.7

19,189.4

--

24,527.1

(7,546.0)

11,097.251.5

--

11,105.1

22,253.8

3,373.9

280.10.04.0

28,390.6

626.0

--

245.5

4,632.6

5,504.1

--

207.1

235.5

5,739.6

22,651.0

--

28,390.6

(11,097.2)

CashFlow(Rmbmn)

12/23

12/24E

12/25E

12/26E

Netincome

1,099.2

1,457.9

2,186.5

2,615.3

D&Aadd-back

258.8

357.9

448.9

496.3

Minorityinterestadd-back

--

--

--

--

Net(inc)/decworkingcapital

737.7

258.5

308.5

323.2

Otheroperatingcashflow

1,225.2

1,408.8

1,184.5

1,093.0

Cashflowfromoperations

3,047.0

3,483.2

4,128.4

4,527.8

Capitalexpenditures

(955.5)

(1,199.0)

(1,082.4)

(976.6)

Acquisitions

--

--

--

--

Divestitures

--

--

--

--

Others

(6,588.4)

--

--

--

Cashflowfrominvesting

(9,938.6)

(1,471.0)

(1,082.4)

(976.6)

Repaymentofleaseliabilities

Dividendspaid(common&pref)

Inc/(dec)indebt

Otherfinancingcashflows

(533.1)

14.8

0.0

0.0

Cashflowfromfinancing

(387.2)

14.8

0.0

0.0

Totalcashflow

(7,278.9)

2,027.0

3,046.1

3,551.2

Freecashflow

2,091.5

2,284.1

3,046.1

3,551.2

Source:Companydata,GoldmanSachsResearchestimates.

_

29August20242

GoldmanSachsKanzhunLtd.(BZ)

ontrackto100%utilization,andtheincremental2%isfrompossiblespecialcash

dividend(e.g.US$100mn+basedonthesame50%payoutratioonGAAPnetpro?tin2023asmanagementislookingintothedividendpolicy).

Wecutourcashbillingsandrevenueforecastsby-2%/-6%/-9%onaveragein

2024/25/26E,primarilyonamorecautiousassumptionofpaidenterprisecustomer

growth;wenowmodellargestableenterprisepayingratios(Exhibit6)andARPPUin

2024-26E,anduserpenetrationtobethepredominantdriverof24%/15%/11%revenue

growthin2024/25/26E.Werevisenon-GAAPnetpro?tin2024/25/26Eby

+1%/-2%/-7%tofactorin2Q24pro?tbeatandthestrongoperatingleverage,andforecastc.20%non-GAAPoperatingpro?tCAGRin2024-26E.

For3Q24E,wenowexpect1)revenue/cashbillings+19%/+14%yoy,2)non-GAAP

OPMof31.7%,-2.5ppyoyduetoadspendingattheOlympics,and3)non-GAAPNPMof35.2%,-9ppyoyonahighereffectivetaxrateof12%.

Our12mtargetpriceforKanzhunisloweredtoUS$19.4fromUS$22.7,basedonatargetP/Emultipleof20x(vs.22xprioraswemarktomarkettheavg.12m-fwdP/EYTD)appliedtoaverage2025-26EEPS.StayBuy.

Takeawaysfrommanagementcall

nRobustMAU/engagementgrowth:MAUsgrew+25%yoyin2Q24(vs.17%yoyin1Q24).In1H24,BZadded28mntotalveri?edusers(vs.fullyeartarget40-45mn).LTMpaidenterpriseusersgrew+31%to5.9mn.AccordingtoQuestmobile,MAUsgrew+19%yoy/+2%mominJuly,vs.+17%yoyinJune,withDAUsreaching

historicallyhighandaDAU/MAUratioat23%.Timespentsharefurtherimprovedto61%inJulyamongmajoronlinerecruitmentplatforms.

Exhibit1:BossZhipinremainsChina’slargestonlinerecruitmentplatform,registering50mnMAUsinJul+19%yoy...

_

MAUsofmajorrecruitmentplatforms(mn)

Exhibit2:...andclaimed61%timespentshareamongstmajorrecruitmentplatformsinChinainJuly

mn

Mar-17

60

50

40

30

20

10

0

Ganji

Zhaocaimao

Jul-17

Nov-17

Mar-18

Jul-18

Nov-18

Mar-19

Jul-19

Nov-19

Mar-20

BossZhipinLagou

Jul-20

Nov-20

Mar-21

ZhaopinYupao

Jul-21

Nov-21

Mar-22

Jul-22

51JobMaimai

Nov-22

Mar-23

Jul-23

Nov-23

Mar-24

Jul-24

Liepin

Dianzhang

51JobLiepin

Ganji

Zhaocaimao

YupaoLagou

Zhilian

Dianzhang

2021-01

2021-02

2021-03

2021-04

2021-05

2021-06

2021-07

2021-08

2021-09

2021-10

2021-11

2021-12

2022-01

2022-02

2022-03

2022-04

2022-05

2022-06

2022-07

2022-08

2022-09

2022-10

2022-11

2022-12

2023-01

2023-02

2023-03

2023-04

2023-05

2023-06

2023-07

2023-08

2023-09

2023-10

2023-11

2023-12

2024-01

2024-02

2024-03

2024-04

2024-05

2024-06

2024-07

BossZhipinMaimai

100%90%80%70%60%50%40%30%20%10%0%

Source:QuestMobileSource:QuestMobile

nRecruitmentdemandtrendedweakerinthesecondhalfof2Q24,asper

management.Enterprises’willingnesstopaydeclinedsequentiallyastheratioofjobseekerstoenterpriseusersincreased.Thatsaid,the#ofenterpriseuseradditionsin

29August20243

GoldmanSachsKanzhunLtd.(BZ)

n

n

n

_

n

n

2Q24grewyoy,andtheaverageMAUofenterpriseusersgrew17%yoyin2Q24.

Despiteshort-termweakperformancein2Q24,managementbelievesthelong-term

structuralopportunitystillexistsasi)ChinahasabundantSMEs,ii)thereisa

structurallaborshortage(especiallyyounglabor),andiii)BossZhipin’sbusinessmodelscatersbestforSMEsandyoungtalents.

Byjobseekertypeandindustry:

oBlue-collardeliveredstrongerperformanceintermsofrecruitmentdemandvs.whitecollarin2Q24,showingyoygrowthbutqoqslowdown.Speci?cally,manufacturinghasbeenthebrightspotfollowedbylogistics.IntoAugust,

blue-collarsectorscontinuedtoshowimprovingsupply-demanddynamics,withactiveenterpriseusersgrowingsequentially.

oBycitytier,tier-2andbelowcitiesstilloutperformedtier-1cities.

oByenterprisesize,largeenterprises’recruitmentdemandtrendedyoybetterthanSMEs,especiallyforenterpriseswithmorethan10kemployees.

HailuoProject:BZhasbuiltcooperationwithagenciesinblue-collarlogistics,

manufacturingindustriesandsetuprules/monitoringmechanismtoensurequalityandrulesofagenciesthroughtheHailuoProject.ThecompanybelievestheHailuoProjecthasbeeneffectiveinprotectingjobseekersintheblue-collarsectorandatthesameallowingagentstomakemoneyinaresponsiblemanner.HailuoSelectgeneratedc.Rmb40mnrevenuein2Q24,growingsigni?cantlyfrom1Q24.The

companyplanstostepupinvestmentinHailuoprojectespeciallyinthemanufacturingsector.

AcquisitionofW.DTechnology:PosttheacquisitionofW.D.Technologyin1Q24inordertoimproveKanzhun’scorecompetenciesinblue-collarsectors,managementplanstointroduceanewservicemodelcombiningBossZhipin’sadvantageintraf?candW.D’sbusinessknowhowinblue-collarrecruitment.Thatsaid,thefounding

teamofW.DTechnologywillmanagethecompanyindependently.

Overseasexpansion:Thecompanyhasintroducedaminimumviableproductin

HongKongandlaunchedOfferT.Managementbelievesittakes2-3monthstoseeuserfeedbackanddecidethedevelopmentpace,whileittakes2-3yearsto

seemeaningfulrevenuecontribution,aspermanagement.IndevelopedmarketsinAsiaandEurope,thecompanyhasstartedtobuildlocalteamsandiscon?dentinthelong-termoverseasexpansionopportunities.

AIinvestment:ManagementhasdecidedtoreducethelevelofpriorityforAI

investment.ThecompanywillfollowthelatestdevelopmentofAItechnologyandapplyitinternally,butexpectssuchinvestmentstostayatmoststablevs.2Q24inthenearterm.

2024Efull-yearoperatingpro?tguidanceunchanged:Managementkeeps2024E

non-GAAPoperatingpro?tguidanceatRmb2.3bnunchangedas1)marketing

expensescouldbewellcontrolledatarelativelylowlevel,asthecompanyhas

achieved62%-70%ofuseracquisitiontarget;2)thecompanyreducestheprioritylevelofAIinvestmentsleadingtoreducedR&Dexpenses.Additionally,

managementbelievesshare-basedcompensationhasreachedthepeakleveland

29August20244

GoldmanSachsKanzhunLtd.(BZ)

willgraduallydeclineinthecomingquarters.

Exhibit3:BossZhipiniOSbillingswas+4%yoymonthtodateinAugust(asofAug.24)(vs.+5%/+18%yoyinJune/July)

BossZhipiniOSgrossingtrend

Exhibit4:BossZhipin’siOSgrossingrankwas?atyoyinJuly/Augusttodate

160%140%120%100%80%60%40%20% 0%-20%-40%-60%

135%

74%

54%

58%42%

25%32%24%

15%

-16%

-33%-35%

61%61%

25%

15%21%18%17%

3%4%

-5%-5%

-23%

-

10

20

30

40

50

60

70

80

JanFebMarAprMayJunJulAugSepOctNovDec

DownloadyoyGrossingsyoyGrossingsmom20242023202220212020

Source:SensorTowerSource:Qimai,GoldmanSachsGlobalInvestmentResearch

Exhibit5:BossZhipiniOSgrossingrankedhigheryoy/wowintheweekendedAug.24

Exhibit6:Weexpecttheenterprisepayingratiotoremainstablegoingforwardonanannualbasis

-25

-20

-15

-10

-5

0

5

10

15

3/1

3/8

3/15

3/22

3/29

4/5

4/12

4/19

yoy

0

5

10

15

20

25

30

35

4/26

5/3

5/10

5/17

5/24

5/31

6/7

6/14

6/21

6/28

7/5

7/12

7/19

7/26

8/2

8/9

8/16

8/23

rankchangeiOSgrossingrank(RHS)

40.035.030.025.020.015.010.05.0

-

25%

19%20%19%

2019202020212022

Verifiedenterpriseusers(mn)%enterprisepayingratio-new

21%

22%22%22%

20232024E2025E2026E

LTMpaidenterprisecustomers(mn)%enterprisepayingratio-old

30%

25%

20%

15%

10%

5%

0%

Source:QimaiSource:Companydata,GoldmanSachsGlobalInvestmentResearch

_

Exhibit7:Weexpectcashbillingstogrow18%yoyandrevenuetogrow24%yoyin2024E

Exhibit8:Weexpectnon-GAAPoperatingpro?ttoreachRmb2.3bn,largelyunchangedvs.priorGSe

Rmbbn

12

10

8

6

4

2

-

119%

95%

98%

90%

6%

-8%

2019202020212022

45%

24%

15%

12%

11%

32%

10%

18%

20232024E2025E2026E

140%120%100%80%60%40%20%0%

-20%

Rmbmn

3,500

3,000

2,500

2,000

1,500

1,000

500

-

(500)(1,000)

-48%

(478)2019

-15%

(288)

2020

28%

21%

1,638

12%

887

563

202120222023

2,320

31%

2024E

2,918

34%

2025E

3,252

35%

2026E

80%

60%

40%20%

0%

-20%

-40%-60%

TotalrevenuesCashbillingsRevenueyoy%Cashbillingsyoy%Operatingprofit,non-GAAPOPM,non-GAAP

Source:Companydata,GoldmanSachsGlobalInvestmentResearchSource:Companydata,GoldmanSachsGlobalInvestmentResearch

29August20245

GoldmanSachsKanzhunLtd.(BZ)

Chinamacrodatahighlights

Exhibit9:Urbanwagegrowthdeceleratedin2Q24Exhibit10:Allsectorssawdeceleratingwagegrowthin2Q24vs.

1Q24,accordingtoZResearchInstitute

38-cityavg.hiringwageyoychangebysector

Percentchange,yoy

25

20

15

10

Percentchange,yoy

25

20

15

10

5

5

GSChinawagetracker(basedonaverage)Urbandisposableincome:wage(NBS)

0

PBOCincomesentiment

Wage,nonprivateenterprises(NBS)Migrantworkerwage(NBS)

Zhiringwage

Urbandisposableincome(NBS)TaoZhalaborincome*

0

-5

-5

-10

-10

040506070809101112131415161718192021222324*Zhaet.al.(2015)"TrendsandCyclesinChina'sMacroeconomy",NBERWorkingPaper

14%12%10%8%6%4%2%0%-2%-4%-6%

38-cityavg.hiringwageyoychangebysector

5%

1%1%

2%

1%

0%

1%

-4%

Consumergoods

Finance

and

business

SemiTMTHealthcarePropertyCommerceConsumerservices

3Q224Q221Q232Q233Q234Q231Q242Q24

Source:NBS,CEIC,PBOC,Z,GoldmanSachsGlobalInvestmentResearchSource:Z

Exhibit11:Employmentoutlookindexdeclinedto28%in3Q24vs.32%/33%in2Q24/1Q24,accordingtoManpoweremployment

outlooksurvey,primarilydraggedbySMEs

Netemploymentoutlookbycompanysize

Exhibit12:CKGSBEmploymentOutlookIndexdroppedmominJuntothelowestlevelYTD

60%50%40%30%20%10% 0%-10%

-20%

2Q213Q21Overall

100

90

80

70

60

50

40

30

4Q211Q222Q223Q224Q221Q232Q233Q234Q231Q242Q243Q24

Micro(<10)Small(10-49)Mid(50-249)Large(250+)

2011-09

2012-03

2012-09

2013-03

2013-09

2014-03

2014-09

2015-03

2015-09

2016-03

2016-09

2017-03

2017-09

2018-03

2018-09

2019-03

2019-09

2020-03

2020-09

2021-03

2021-09

2022-03

2022-09

2023-03

2023-09

2024-03

BusinessConditionIndexEmploymentCostIndexEmploymentOutlookIndex

Source:ManpowerSource:CKGSB,Wind

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InvestmentThesis-KanzhunLtd.

Kanzhun(BZ)isthelargestonlinerecruitmentcompanyinChinaintermsofMAUsandrevenue.Builtuponamobile-native,recommendationfeed-basedanddirectchatmodel,

Kanzhun’sBossZhipinplatformenjoysindustry-leadinguserengagementandextendsrecruitmentservicesdirectlytomanagementandprofessionalrecruiters.Weare

Buy-ratedonBZasitenjoysoneofthestrongestgrowthandpro?tabilityoutlookpro?leswithinourChinaInternetcoverage,thankstorisingonlinerecruitment

penetrationanditsprovenyetearly-stagemonetizationmodel.Speci?cally,webelievei)Kanzhun’scontinuouspenetrationintoSMEs/bluecollarsectors,extendingindustry

leadership,andenterprisepayingratioimprovementshouldprovidetoplinegrowth

resilience;ii)itshighoperatingleverageandstrongbrandnameshouldleadtosustainedpro?tability,andthusleavemoreroomtoinvestintonewlegsofgrowthand/orreturn

excessivecashtoshareholders.

29August20246

GoldmanSachsKanzhunLtd.(BZ)

PriceTargetRisksandMethodology-KanzhunLtd.

WeareBuy-ratedonKanzhunwitha12-monthtargetpriceofUS$19.4basedona

targetP/Emultipleof20xappliedtoaverage2025-26EEPS.Keyrisks:1)Slower-thanexpectedmacro-economicandrecruitmentdemandrecovery;2)Intensifying

competition;3)Lowermarginpro?lewithexpansionintoblue/gold-collarsegments;4)Potentialmisconductbyusers/employees.

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29August20247

GoldmanSachsKanzhunLtd.(BZ)

DisclosureAppendix

RegAC

I,TimothyZhao,herebycertifythatalloftheviewsexpressedinthisreportaccuratelyre?ectmypersonalviewsaboutthesubjectcompanyorcompaniesanditsortheirsecurities.Ialsocertifythatnopartofmycompensationwas,isorwillbe,directlyorindirectly,relatedtothespeci?crecommendationsorviewsexpressedinthisreport.

Unlessotherwisestated,theindividualslistedonthecoverpageofthisreportareanalystsinGoldmanSachs’GlobalInvestmentResearchdivision.

GSFactorPro?le

TheGoldmanSachsFactorPro?leprovidesinvestmentcontextforastockbycomparingkeyattributestothemarket(i.e.ourcoverageuniverse)anditssectorpeers.Thefourkeyattributesdepictedare:Growth,FinancialReturns,Multiple(e.g.valuation)andIntegrated(acompositeofGrowth,FinancialReturnsandMultiple).Growth,FinancialReturnsandMultiplearecalculatedbyusingnormalizedranksforspeci?cmetricsforeachstock.The

normalizedranksforthemetricsarethenaveragedandconvertedintopercentilesfortherelevantattribute.Theprecisecalculationofeachmetricmayvarydependingonthe?scalyear,industryandregion,butthestandardapproachisasfollows:

Growthisbasedonastock’sforward-lookingsalesgrowth,EBITDAgrowthandEPSgrowth(for?nancialstocks,onlyEPSandsalesgrowth),withahigherpercentileindicatingahighergrowthcompany.FinancialReturnsisbasedonastock’sforward-lookingROE,ROCEandCROCI(for?nancial

stocks,onlyROE),withahigherpercentileindicatingacompanywithhigher?nancialreturns.Multipleisbasedonastock’sforward-lookingP/E,P/B,price/dividend(P/D),EV/EBITDA,EV/FCFandEV/DebtAdjustedCashFlow(DACF)(for?nancialstocks,onlyP/E,P/BandP/D),withahigherpercentileindicatingastocktradingatahighermultiple.TheIntegratedpercentileiscalculatedastheaverageoftheGrowthpercentile,FinancialReturns

percentileand(100%-Multiplepercentile).

FinancialReturnsandMultipleusetheGoldmanSachsanalystforecastsatthe?scalyear-endatleastthreequartersinthefuture.Growthusesinputsforthe?scalyearatleastsevenquartersinthefuturecomparedwiththeyearatleastthreequartersinthefuture(onaper-sharebasisforallmetrics).

ForamoredetaileddescriptionofhowwecalculatetheGSFactorPro?le,pleasecontactyourGSrepresentative.

M&ARank

Acrossourglobalcoverage,weexaminestocksusinganM&Aframework,consideringbothqualitativefactorsandquantitativefactors(whichmayvaryacrosssectorsandregions)toincorporatethepotentialthatcertaincompaniescouldbeacquired.WethenassignaM&Arankasameansofscoringcompaniesunderourratedcoveragefrom1to3,with1representinghigh(30%-50%)probabilityofthecompanybecominganacquisitiontarget,2

representingmedium(15%-30%)probabilityand3representinglow(0%-15%)probability.Forcompaniesranked1or2,inlinewithourstandarddepartmentalguidelinesweincorporateanM&Acomponentintoourtargetprice.M&Arankof3isconsideredimmaterialandthereforedoesnotfactorintoourpricetarget,andmayormaynotbediscussedinresearch.

Quantum

QuantumisGoldmanSachs’proprietarydatabaseprovidingaccesstodetailed?nancialstatementhistories,forecastsandratios.Itcanbeusedforin-depthanalysisofasinglecompany,ortomakecomparisonsbetweencompaniesindifferentsectorsandmarkets.

Disclosures