China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

[Kanzhun Ltd. (BZ US, BUY, TP US$17) Target Price Change]: Mark Down C4Q24 and 2025 on Weak Demand

[Kanzhun Ltd. (BZ US, BUY, TP US$22) Rating Change]: Market Share Gain Ahead of Purported Recovery

[Kanzhun Ltd. (BZ US, BUY, TP US$19) Earnings Review]: Focusing on Absolute Value…Maintain BUY

[Kanzhun (BZ US, BUY, TP US$19) TP Change]: Impacted by Poor Macro but Still on Top of Competition

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

Equity Bottom-Up

<ul>
<li>We expect BZ to report C3Q24 cash billing to decline 5% QoQ, 3.0% below consensus. We, however, expect non-GAAP net income to be 13% above consensus</li>
<li>September job creation worsened over July and August, which showed job market recovery is still nowhere in sight;</li>
<li>We keep rating and TP unchanged. Trading at 15x 2025 PE in 2025, we expect BZ to grow non-GAAP EBIT at a 3Yr CAGR of 24%.</li>
</ul>


We expect BZ to report C3Q24 cash billing to decline 5% QoQ, 3.0% below consensus. We, however, expect non-GAAP net income to be 13% above consensus
September job creation worsened over July and August, which showed job market recovery is still nowhere in sight;
We keep rating and TP unchanged. Trading at 15x 2025 PE in 2025, we expect BZ to grow non-GAAP EBIT at a 3Yr CAGR of 24%.


[Kanzhun Ltd. (BZ US, BUY, TP US$19) Earnings Preview]: Recovery Is Far Away but Execution Is Solid