BZ - Kanzhun: Fairly Valued With Slowing Growth On The Horizon

2024-02-06 16:41:10 ET

Summary

• I think that Kanzhun's Q4 2023 earnings release in March won't disappoint the market.
• But I expect a slower pace of top-line and bottom-line expansion for BZ in FY 2024.
• The market has already factored in BZ's growth prospects as reflected in a 1x PEG valuation multiple for the stock.
• The outlook for Kanzhun is mixed considering expectations of in-line fourth quarter earnings and growth deceleration in 2024, and this warrants a Hold rating.

Elevator Pitch

I still have a Hold rating for Kanzhun Limited ( BZ ) [2076:HK].

My earlier article written on October 19, 2023, touched on the Mainland Chinese recruitment sector's prospects, and my expectations of Kanzhun's capital return and profitability improvement. In the latest write-up, I preview BZ's Q4 2023 results and evaluate the company's outlook for 2024....

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