Boss Zhipin Earnings: Revenue Growth Decelerating With Challenges and More Competition Ahead

We maintain our fair value estimate for Boss Zhipin at $12 per ADR (HKD 46.90 per share) as the company reported third-quarter revenue of CNY 1.91 billion, representing a 19% year-on-year increase. However, growth decelerated from 36% over the same quarter in 2023. The company provided a fourth-quarter revenue midpoint outlook of CNY 1.8 billion, representing only a 14% increase year on year. We are concerned that the significant slowdown reflects a structural issue for the company as it also previously provided a cash billing forecast of a 25%-30% year-on-year increase for 2024. Nonetheless, it now no longer gives any details nor guidance, as its cash billing fell short in the previous two quarters, and the nondisclosures imply another quarter of shortfall.