Seek Ltd

SEK: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$59.00	Ktzypm	Qyxdlwz

Seek: Impairment of Zhaopin Investment on Increased Competition

Roy Van Keulen

Jul 25, 2024

We maintain our AUD 20 per share fair value estimate for narrow-moat Seek following its announcement of an impairment of its investment in Zhaopin, the Chinese online employment marketplace. Seek will impair AUD 120 million in the carrying value of its 23.5% equity-accounted investment and a further AUD 21 million impairment of the Zhaopin net consideration receivable, which is partially backed by recourse to equity and is now deemed less valuable. At current prices, Seek shares screen as fairly valued.

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