Analyst Saiyi He from CMB International Securities maintained a Buy rating on KE Holdings Inc. Sponsored ADR Class A and increased the price target to $21.80 from $20.70.
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Saiyi He has given his Buy rating due to a combination of factors, chiefly the expectation that Ke Holdings will restore earnings through disciplined cost controls and improving profitability in its newer business lines. Despite forecasting a year-on-year revenue decline for the near term after an unusually strong comparison period, he projects a solid rebound in non-GAAP net profit, underpinned by one-off cost reductions and ongoing efficiency gains.
He also argues that the company is structurally well positioned to increase its share in China’s housing transaction market, supported by its technology platform, service quality and extensive agent cooperation network, while recent policy support for the property sector should help stabilize demand. Reflecting a better outlook for long-term operating cash flows, he raises his sum-of-the-parts–based target price, which implies attractive valuation multiples versus forecast earnings and supports the reaffirmed Buy recommendation, albeit with acknowledged risks from potential GTV softness and slower margin recovery.