KANZHUN (BZ): Strong Q3 Performance and Bullish Analysts Signal a Strategic Entry Point

The reopening of China's economy in 2025 has created a fertile ground for value investors seeking growth opportunities in sectors poised to benefit from structural shifts. KANZHUN (BZ), the parent company of the BOSS Zhipin recruitment platform, has emerged as a standout performer in this environment. Its Q3 2025 results, coupled with a favorable analyst outlook, suggest the stock is undervalued relative to its long-term growth potential.

Q3 2025: A Masterclass in Execution

KANZHUN's third-quarter performance underscores its ability to capitalize on China's labor market dynamics. Revenue rose 13.2% year-over-year to RMB2.16 billion ($303.9 million), driven by a 13.3% increase in total paid enterprise customers to 6.8 million and a 10.0% rise in average monthly active users (MAUs) to 63.8 million according to the company's Q3 2025 financial results. More impressively, profitability metrics surged: net income grew 67.2% to RMB775.4 million ($108.9 million), while adjusted net income hit RMB991.8 million ($139.3 million), a 34.2% increase as reported in the Q3 2025 earnings release.

This profitability expansion was fueled by cost discipline and operational leverage. Sales and marketing expenses fell 24.6% year-over-year, reflecting improved marketing efficiency according to the Q3 2025 financial report. Meanwhile, the company's cash position remains robust, with RMB19.2 billion ($2.699 billion) in cash and cash equivalents as of September 30, 2025 according to Seeking Alpha's analysis. KANZHUN also authorized a $250 million share repurchase program through August 2026, signaling confidence in its intrinsic value as stated in the Q3 2025 earnings announcement.

Alignment with China's Reopening Trade

KANZHUN's growth is inextricably linked to the broader recovery of China's labor market. As the country transitions to a knowledge-based economy, demand for skilled talent-particularly in AI, smart manufacturing, and digital finance-is surging. According to a report by Hays China, labor productivity in 2024 increased by 4.9% year-over-year to RMB173,898 per person, while average worker age rose to 39.72 years, exacerbating shortages in sectors like manufacturing and logistics as detailed in Hays China's 2025 talent trends report.

KANZHUN's AI-driven tools, such as its AI-generated content (AIGC) recruitment solutions, position it to capture this demand. The company's focus on integrating AI into its platform has enhanced recruitment efficiency, reducing time-to-hire and improving user retention as reported in the Q3 2025 earnings call transcript. This technological edge, combined with its two-sided network effect-connecting employers with a growing pool of high-quality candidates-creates a durable competitive advantage.

Bullish Analysts and Attractive Valuation

Despite KANZHUN's strong fundamentals, its stock remains undervalued. As of November 18, 2025, the company trades at a P/E ratio of 30.63 and a forward PEG ratio of 0.19, suggesting the market is underestimating its growth potential according to Macrotrends and Finbox data. Analysts have taken notice: nine Wall Street analysts rate the stock as a "Moderate Buy," with an average 12-month price target of $22.40, implying a 7.74% upside from its current price of $20.79 as reported by MarketBeat. Notably, UBS Group upgraded its rating to "Buy" from "Neutral," and Barclays raised its price target, reflecting growing confidence in the company's execution as detailed in MarketBeat's analysis.

The valuation becomes even more compelling when considering KANZHUN's Q4 2025 guidance. The company expects revenue to grow 12.4% to 13.5% year-over-year, reaching RMB2.05 billion to RMB2.07 billion as stated in the Q4 outlook. This trajectory aligns with broader trends in China's labor market, where urban centers like Shanghai and Beijing are experiencing heightened competition for talent, driving up demand for efficient recruitment platforms according to China Briefing's 2025 labor market analysis.

Risks and Mitigants

While KANZHUN's prospects are bright, investors should remain mindful of risks. Rising competition from platforms like Liepin and policy-driven macroeconomic volatility could temper growth. However, KANZHUN's focus on user satisfaction, AI innovation, and cost control provides a buffer. Its strong cash position and disciplined capital allocation-evidenced by the share repurchase program-further enhance its resilience.

Conclusion: A Strategic Entry Point for Value Investors

KANZHUN's Q3 2025 results demonstrate its ability to deliver both top-line growth and margin expansion in a recovering China. With a compelling valuation, favorable analyst sentiment, and a strategic position in the AI-driven recruitment sector, the stock offers a rare combination of value and growth potential. For investors seeking exposure to China's reopening trade, KANZHUN represents a strategic entry point-one that balances prudent risk management with the promise of long-term capital appreciation.