CLSA has released a research report indicating it expects Kanzhun Limited's revenue to grow 13% year-over-year this year. Even with increased R&D investment and World Cup sponsorship, the firm anticipates an expansion in the operating profit margin. Based on the latest price-to-earnings ratio, CLSA has altered its valuation methodology, switching from a discounted cash flow model to an adjusted P/E multiple. Using a forecasted adjusted P/E of 14 times for next year, the firm has lowered its price target for Kanzhun Limited's US-listed shares from $24.5 to $20, while maintaining an "Outperform" rating. Kanzhun Limited's last quarter revenue, profit, and cash collection all exceeded expectations. Although the guidance for the first quarter of this year appears significantly weaker than expected, this is believed to be due to the later timing of the Lunar New Year holidays this year. The report also mentioned that Kanzhun Limited's stock price had experienced a significant correction earlier, aligning with the "AI victim" narrative in the US market. However, CLSA believes the market is overlooking differences in China's employment structure and the company's medium-term revenue growth opportunities.
Comments