BOSS Zhipin 1Q26 profit beat expectations, with AI closed-loop recruitment services becoming a new growth driver
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BOSS Zhipin 1Q26 profit beat expectations, with AI closed-loop recruitment services becoming a new growth driver
Goldman Sachs maintains its Buy rating and 12-month target price on KANZHUN LTD, believing that the recovery in hiring demand, AI-driven efficiency gains, user growth, and buybacks/dividends will continue to support revenue and earnings performance.
- 1Q26 revenue was broadly in line with expectations, while non-GAAP net profit was 60% above GSe and consensus, mainly driven by lower operating expenses and investment gains.
- The company guided 2Q26 revenue to a midpoint of Rmb2.4bn, implying 14% yoy growth, an acceleration from 1Q26's 8% revenue growth.
- Monthly active users of AI applications exceeded 10mn; among test users, the AI agent improved matching efficiency by 60%, and AI closed-loop recruitment services contributed about Rmb50mn of revenue in 1Q26.
- Newly added verified users reached 15mn in 1Q26, paying enterprise users grew 10.9% yoy to 7.1mn, and MAU rose 6% yoy to 60.9mn.
- The company plans to return at least 50% of the prior year's non-GAAP net profit to shareholders each year over the next three years through cash dividends and share repurchases.
Report interpretation
Overview
This report is Goldman Sachs' commentary on KANZHUN LTD's 1Q26 results. The report notes that revenue was broadly in line with expectations, while non-GAAP net profit significantly beat expectations, mainly due to lower general and administrative expenses, operating cost control, and investment gains. Management provided 2Q26 revenue guidance with a midpoint of Rmb2.4bn, implying 14% yoy growth and an acceleration versus 1Q26. The report maintains a Buy rating, arguing that the recovery in hiring demand, penetration into blue-collar and lower-tier cities, commercialization of AI closed-loop services, user scale expansion, overseas validation, and shareholder returns together form the core investment thesis.
Core views
Core views include: first, hiring demand is recovering and structurally shifting toward blue-collar roles, lower-tier cities, and large enterprises; second, the AI strategy focuses on improving the efficiency of the two-sided ecosystem and driving outcome-based monetization through closed-loop recruitment services; third, user growth and engagement remain solid; fourth, Hong Kong OfferToday is being used to validate the overseas model and build an international team, with monetization not the short-term priority; and fifth, the buyback and dividend commitment enhances shareholder returns. Goldman Sachs raised its 2026E non-GAAP net profit forecast by 13%, while keeping 2026-28E revenue and target price broadly unchanged.
Analysis framework
The report uses a framework centered on earnings comparisons, management guidance, user and paying enterprise metrics, segmentation of hiring demand, progress in AI applications, overseas platform data, buyback/dividend plans, and valuation multiples, and evaluates KANZHUN LTD's growth, return, valuation, and overall attractiveness through GS Factor Profile and relative valuation.
Methodology notes
The target price is based on a 15.5x target 12-month forward P/E multiple.
Goldman Sachs kept the 12-month target price for BZ/2076.HK at US$21/HK$82, with the target P/E multiple unchanged at 15.5x.
It compares a stock's attributes versus the market and industry peers using growth, financial return, valuation multiples, and a composite factor.
The chart shows that KANZHUN LTD has a strong financial return factor, especially relative to peers in China's internet verticals; its valuation multiple factor is low, the composite factor is relatively strong, and the growth factor is medium to slightly low.
Forecasts are adjusted based on the actual 1Q26 profit performance.
The report raised its 2026E non-GAAP net profit forecast by 13% to reflect the 1Q26 earnings beat, while 2026-28E revenue and net profit forecasts were broadly unchanged.
Asset mapping & comparison
Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).
- BZ.USKANZHUN LTD ADR, one of the main covered names in the report.
- Strengths
- One of China's largest online recruitment platforms, with leading MAU and revenue scale; AI recommendations, the direct-chat model, blue-collar and lower-tier city penetration, operating leverage, and buybacks/dividends are key advantages.
- Weaknesses
- Revenue growth remains in the low-double-digit range, with 1Q26 revenue up 8% yoy, and performance depends heavily on the hiring cycle, enterprise payment trends, and AI commercialization execution.
- Comparison
- Relative to the NASDAQ Composite, the chart shows that BZ's absolute and relative performance over the past 3, 6, and 12 months has been under pressure, but Goldman Sachs believes the current valuation is below historical lows.
- Risks
- Hiring demand weaker than expected, AI disruption, weak execution in AI features and monetization, intensifying competition, overseas investment losses or lower-than-expected monetization, and improper behavior by users or employees.
- 2076.HKKANZHUN LTD's H-shares, with target price and rating given alongside the ADR.
- Strengths
- Shares the same company fundamentals, AI closed-loop recruitment services, user growth, and shareholder return thesis; target price is HK$82.
- Weaknesses
- Affected by the same hiring cycle, competitive landscape, and AI execution risks, while also being exposed to Hong Kong market liquidity and sentiment.
- Comparison
- The report maintains the same Buy rating framework as BZ.US, with the target price based on the same 15.5x 12-month forward P/E methodology.
- Risks
- The same risks as BZ.US, including hiring demand, AI monetization, overseas expansion, competition, and compliance/behavior risks.
- OfferTodayKANZHUN LTD's recruitment platform in Hong Kong, used to validate the overseas model.
- Strengths
- Management disclosed DAU of about 60k; app downloads have led since March 2025, and MAU ranked second in April 2026.
- Weaknesses
- Management said Hong Kong's short-term goal is mainly to validate the business model and build an international team, and monetization is not a near-term priority.
- Comparison
- Download volume in April 2026 was about 4.6x that of second-place JobsDB, indicating strong user acquisition momentum.
- Risks
- Overseas monetization lower than expected, wider losses from increased investment, local competition, and operational execution challenges.
Key data
- 1Q26 non-GAAP net profit60% above GSe and consensusMainly driven by lower operating expenses and investment gains.
- 1Q26 cash receipts+12% yoy2% above GSe and broadly in line with consensus.
- 1Q26 non-GAAP operating profit+18% yoy3% above GSe, driven by lower-than-expected G&A expenses.
- 2Q26E revenue guidanceRmb2.4bnThe midpoint implies 14% yoy growth, in line with GSe and consensus.
- AI application MAU10mn+Management disclosed the scale of AI adoption in 1Q26.
- AI agent matching efficiency+60%AI agent capability improved matching efficiency among test users.
- AI closed-loop recruitment services revenueAbout Rmb50mnAbout 2.4% of revenue in 1Q26; the report estimates this contributes about 1.5 percentage points to 2026E revenue growth.
- Newly added verified users15mnAdded from January to April 2026; the full-year target is 40mn.
- Paying enterprise users7.1mnUp 10.9% yoy and 4.4% qoq in 1Q26.
- MAU60.9mnUp 6% yoy and 5% qoq in 1Q26; the March peak was 72mn.
- OfferToday DAUAbout 60kData disclosed by Hong Kong platform management; the short-term focus is model validation rather than monetization.
- 2026 year-to-date share repurchasesAbout US$197mnAs of 2026-05-18, this is about 2.9% of the latest market cap; the buyback program totals US$400mn and is valid through 2027-08-28.
Impact & implications
The investment implication of the report is that market concerns about AI disrupting job openings and demand for recruitment platforms may be partly eased, because management disclosed that new job postings grew 10% yoy and AI-related job recruitment revenue grew more than 100% yoy, while AI is being used to strengthen matching efficiency and closed-loop service monetization rather than simply weaken platform value. If 2Q26 revenue accelerates as guided, AI closed-loop services continue to scale, and user growth targets are achieved, KANZHUN LTD's earnings leverage, cash returns, and valuation re-rating potential could continue to support stock performance.
Risks
- Hiring demand weaker than expected.
- Potential AI disruption to the labor market and the online recruitment TAM.
- AI feature rollout or AI monetization execution weaker than expected.
- Overseas expansion underperforms, monetization slows, or losses widen.
- Intensifying industry competition.
- Platform and regulatory risks arising from improper behavior by users or employees.
What to watch
- Whether 2Q26 revenue can reach the Rmb2.4bn midpoint guidance and achieve 14% yoy growth.
- Whether AI closed-loop recruitment services revenue can continue to rise from about Rmb50mn in 1Q26 and deliver the estimated 1.5 percentage point contribution to 2026E revenue growth.
- Whether full-year 2026 newly added verified users can reach the 40mn target.
- Whether demand for blue-collar, lower-tier city, large enterprise, and AI-related job openings remains strong.
- Whether paying enterprise users and MAU continue to grow yoy and qoq.
- OfferToday's DAU, downloads, MAU ranking, and subsequent monetization path in Hong Kong.
- Execution progress of the US$400mn buyback program and delivery on the commitment to return at least 50% of non-GAAP net profit to shareholders over the next three years.