Kanzhun AI is a long-term driver, not a risk factor; initiate on H-share at OW and assume coverage of the ADR at OW

Research evidence excerpt

Kanzhun AI is a long-term driver, not a risk factor; initiate on H-share at OW and assume coverage of the ADR at OW

Asia Pacific Equity Research

03 July 2026

Kanzhun

AI is a long-term driver, not a risk factor; initiate on H-

share at OW and assume coverage of the ADR at OW

We initiate coverage of Kanzhun H-share (2076 HK) and assume coverage of China

Kanzhun - ADR, both at OW, and consider these to be our top picks among China Internet

online vertical firms – our Dec-27 PTs of US$20/HK$78 for the ADR (OW) and AC Daniel Chen

H-share imply 54%/51% potential upside. Kanzhun's ADR share price has fallen (86-21) 6106 6205

47% since its Sep 2025 peak (vs. KWEB -38% during the same period); its 12M daniel.q.chen@jpmorgan.com

forward P/E has de-rated from 21x to 10x. We think the key reasons for this SAC Registration Number: S1730521040001

derating are concerns about AI’s impact on the recruitment market (AI to replace Alex Yao

workforce) and on the company itself (AI agent to disintermediate Kanzhun). We (86 21) 6106 6505

believe such concerns are overdone: 1) Kanzhun's proprietary recruitment data alex.yao@jpmorgan.com

and recommendation system make it the go-to platform for enterprises (especially SAC Registration Number: S1730523020001

SMEs) and job seekers. We believe AI will be a major driver of an increase in Olivia Xu

Kanzhun's long-term ARPU (enabling a performance-based/closed-loop (86-21) 6106 6138

olivia.w.xu@jpmorgan.com

recruitment service at a premium price, e.g. Rmb1k per successful hire, vs SAC Registration Number: S1730525060001

<Rmb10 per resume currently). 2) We estimate YoY revenue growth to accelerate J.P. Morgan Securities (China) Company

from 8% in 1Q26 to 15% in 2Q26 (high end of guidance). Active job postings for Limited