Lyon: Kanzhun Ltd. Sponsored ADR (BZ.US) target price lowered to $20, quarterly results exceed expectations, first quarter guidance weak due to the later Lunar New Year.

Lyon released a research report predicting that the revenue of Kanzhun Ltd. Sponsored ADR will increase by 13% this year compared to last year. Even with an increase in R&D investment and sponsoring the World Cup, it is expected that the operating profit margin will expand. Based on the latest P/E ratio, the bank changed its valuation method from cash flow discount rate to adjusted P/E ratio. It is predicted that the adjusted P/E ratio will be 14 times next year. The target price of Kanzhun Ltd. Sponsored ADR (BZ.US) stock was lowered from $24.5 to $20, and the bank maintains an "outperform" rating. BOSS ZHIPIN-W (02076) outperformed expectations in terms of revenue, profit, and cash receipts in the last quarter. Although the first quarter guidance for this year seems significantly lower than expected, it is believed to be due to the later timing of the Chinese New Year this year. The bank mentioned that the stock price of Kanzhun Ltd. Sponsored ADR had a significant pullback earlier, in line with the "AI Victim" story in the US, but the bank believes that the market has overlooked the differences in China's employment structure and the opportunities for mid-term income growth.