IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

Arun has over 15 years’ experience covering the Technology sector. During this time, he has worked with technology start-ups and as an equity analyst in investment banks and independent research firms. He was formerly a Technology Analyst for Canaccord Genuity, Altium Securities, Espirito Santo Investment Bank, Noble Group and Clear Capital. He has a dual Master’s degree in Financial Engineering and Industrial and Operations Engineering from the University of Michigan. He obtained his Bachelor’s degree in Mechanical Engineering from the Indian Institute of Technology, Bombay. He is also a CFA charterholder.

IPOs and Catalysts/Events

Kanzhun IPO Initiation: Search and Employ

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Global Equity Research Ltd

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<p><a href="https://www.smartkarma.com/entities/kanzhun-ltd" target="_blank" data-smartkarma-citation="entities:33368:1" rel="noopener">Kanzhun (BZ US)</a> is the largest online recruitment platform in China, as measured by the average MAU in 2020, according to CIC. Its <em>BOSS Zhipin</em> mobile app connects job seekers and enterprise users. Kanzhun has filed for a Nasdaq IPO to raise proceeds of $800 million, according to press reports.  </p><p>In <a href="https://www.smartkarma.com/insights/kanzhun-ipo-initiation-search-and-employ" target="_blank" data-smartkarma-citation="insights:51969" rel="noopener">Kanzhun IPO Initiation: Search and Employ</a>, we opined that Kanzhun’s strong growth in users and fast-paced revenue growth suggests another “growth at all costs” strategy. Encouragingly, the high revenue visibility, declining loss margin and cash generation suggest that Kanzhun can eventually deliver this growth profitability. For investors willing to brave the risk that the current market selloff in high growth stocks persists, we concluded that the Kanzhun story warrants a closer look.</p><div class="content-highlight"><p>In this note, we compare Kanzhun’s key financial metrics to its listed peers, <a href="https://www.smartkarma.com/entities/51-job-inc-adr" target="_blank" data-smartkarma-citation="entities:532:1" rel="noopener">51 Job Inc Adr (JOBS US)</a> and <a href="https://www.smartkarma.com/entities/wise-talent-information-tech" target="_blank" data-smartkarma-citation="entities:27177:1" rel="noopener">Wise Talent Information Tech (6100 HK)</a>/Tongdao Liepin. 51jobs is in the midst of a $79.05 in cash privatisation bid from a consortium consisting of DCP, Ocean Link Partners and Mr Rick Yan, 51job's CEO since 2000 - <a href="https://www.smartkarma.com/insights/51job-s-updated-privatisation-bid" target="_blank" data-smartkarma-citation="insights:51071" rel="noopener">51job’s Updated Privatisation Bid</a>. Our analysis suggests that Kanzhun provides a growth and revenue visibility vs margin and cash generation trade-off in comparison to its listed peers.   </p></div>

Kanzhun (BZ US) is the largest online recruitment platform in China, as measured by the average MAU in 2020, according to CIC. Its BOSS Zhipin mobile app connects job seekers and enterprise users. Kanzhun has filed for a Nasdaq IPO to raise proceeds of $800 million, according to press reports.  In Kanzhun IPO Initiation: Search and Employ, we opined that Kanzhun’s strong growth in users and fast-paced revenue growth suggests another “growth at all costs” strategy. Encouragingly, the high revenue visibility, declining loss margin and cash generation suggest that Kanzhun can eventually deliver this growth profitability. For investors willing to brave the risk that the current market selloff in high growth stocks persists, we concluded that the Kanzhun story warrants a closer look.In this note, we compare Kanzhun’s key financial metrics to its listed peers, 51 Job Inc Adr (JOBS US) and Wise Talent Information Tech (6100 HK)/Tongdao Liepin. 51jobs is in the midst of a $79.05 in cash privatisation bid from a consortium consisting of DCP, Ocean Link Partners and Mr Rick Yan, 51job's CEO since 2000 - 51job’s Updated Privatisation Bid. Our analysis suggests that Kanzhun provides a growth and revenue visibility vs margin and cash generation trade-off in comparison to its listed peers.   

Kanzhun IPO: Growth/Margin Trade-Off Vs Peers