Zhaopin Growth report : Average 23% revenue growth per year

Accuracy score :

Zhaopin Ltd ADR  ZPIN

Zhaopin Ltd, through its subsidiaries, is engaged in operating an online recruitment platform in the People's Republic of China. It also provides complementary human resources related services, including campus recruitment and assessment services. Recruitment services involve different aspects of the PRC laws, including human resources, internet information provision, and advertising. On June 12, 2014, their ADSs commenced trading on the New York Stock Exchange under the symbol “ZPIN.” They completed their initial public offering on June 17, 2014, and raised approximately US$70.4 million in net proceeds after deducting underwriter commissions from the initial public offering of 5,610,000 ADSs, representing 11,220,000 Class A ordinary shares, at the price of US$13.50 per ADS.

Zhaopin is a leading career platform in China, focusing on connecting users with relevant job opportunities throughout their career lifecycle. Their zhaopin.com website is a popular career-focused website in China. Their over 120 million registered users include diverse and educated job seekers who are at various stages of their careers and are in demand by employers as a result of the general shortage of skilled and educated workers in China. In the fiscal year ended June 30, 2016, over 36.9 million job postings were placed on their platform by approximately 509,813 unique customers, including multinational corporations, small and medium-sized enterprises and state-owned entities. The quality and quantity of our users and the resumes in their database attract an increasing number of customers.

Past years growth (Fiscal year ends in June )

  • Revenue in 2013 was 848 million CNY
  • Revenue in 2014 was 1.05 billion CNY  - 24% increase compared to the year before
  • Revenue in 2015 was 1.27 billion CNY - 20% increase compared to the year before
  • Revenue in 2016 was 1.52 billion CNY (220 million USD, 1 CNY = 0.145 USD) – 19.5% increase compared to the year before

Future estimated growth

  • Revenue for the next fiscal year should be around 1.80 – 1.90 billion CNY - 18% to 22% increase compared to the year before
  • Revenue for the 2018 fiscal year could be around 2 – 2.2 billion CNY - 10% to 15% increase compared to the year before
  • Revenue for the 2019 fiscal year could be around 2.5 billion CNY

In 2016 fiscal year - online recruitment services represent 84.8% of total revenues, other services represent 15.2% of total revenues. ZPIN is primarily focus on providing online recruitment services, which are highly scalable and have higher gross margin than its offline recruitment services. Revenues from online recruitment services accounted for 81.7%, 82.9% and 84.8% of total revenues in the fiscal years ended June 30, 2014, 2015 and 2016, respectively. Number of unique customers has increased more than 50% from 2014, number of job postings has increased more than 100% from 2014.

Their revenues are significantly affected by the growth and development of the Chinese economy, the recruitment services market in general, and their market position in the competitive landscape. Their future revenue growth will depend significantly upon their ability to gain or maintain market share to capitalize on China’s continued economic growth.

Their online recruitment services revenues have continued to grow, primarily because of the growing acceptance of the Internet as a recruitment and job-search channel in China; the advantages offered by online recruitment services that better address the evolving and increasingly sophisticated needs of both job seekers and employers; and their ability to attract and retain users and customers using their online recruitment services.  ZPIN expects that revenues from online recruitment services will continue to contribute a substantial majority of total revenues in the foreseeable future.

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