Earnings Digest | BOSS Zhipin is truly a cash cow company!
$Kanzhun Limited(BZ)$ announced its fourth-quarter and full-year earnings yesterday, and its stock price skyrocketed 18.8%!
Looking at the financial data of BOSS Zhipin, and it's mind-blowing! It's rare to see a company grow against the trend when the macro economy is struggling!
For the full year, BOSS Zhipin's annual revenue reached 5.95 billion yuan, a whopping 31.9% increase year-on-year!
And in terms of quarterly growth, revenue in the fourth quarter hit 1.58 billion yuan, a 46% year-on-year increase, showing a trend of accelerated growth!
The high growth in 2023 is mainly due to the severe impact of the 2022 pandemic on the job market, which left BOSS Zhipin's performance at a low point. Plus, BOSS Zhipin has accelerated its penetration into the blue-collar industry, lower-tier cities, and small and medium-sized enterprises.
Looking ahead to the next two years, analysts expect BOSS Zhipin's annual growth rate to be around 25%.
Apart from its high growth, BOSS Zhipin's profitability is quite impressive. In 2023, its gross margin reached a staggering 82.2%, and its adjusted net profit margin hit 18.5%!
And there's still plenty of room for its net profit margin to rise even further. BOSS Zhipin's Sales and marketing expenses ratio is currently at 33.5%, which has plenty of room to drop. While General and administrative and research expenses ratio are relatively rigid, there's still room for them to decrease in absolute terms. Analysts predict that BOSS Zhipin's profit margin could reach 33% by 2025!
In the fourth quarter of 2023, BOSS Zhipin's sales expenses ratio has already dropped to 27.4%!
With such growth and super profitability, BOSS Zhipin's P/E ratio is expected to drop to around 20 in the next two years, and there is still room for upside.
And speaking of finances, BOSS Zhipin has no interest-bearing debt, which only enhances its ability to reward shareholders. In the fourth-quarter report, the company announced plans to repurchase up to $200 million worth of shares over the next year.
In May and December last year, BOSS Zhipin already repurchased $25.99 million shares. Combined with cash dividends paid out earlier, it's clear that BOSS Zhipin is doing a great job of rewarding its investors.
This is truly a cash cow company with superb profitability!
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- EricVaughan·03-13Wow, BOSS Zhipin is milking it for all it's worth! 🐄🤑LikeReport
- Tom Chow·03-14niceLikeReport