KE Holdings, Inc. Class A (HK:2423)
:2423
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KE Holdings, Inc. Class A
(2423)
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Rating:54Neutral
Price Target:
HK$46.00
â–²(7.68% Upside)
Action:Reiterated
Date:05/20/26
The score is held back primarily by weakening fundamentals and negative latest-year cash generation, plus an extremely stretched P/E valuation. These are partially offset by a solid balance sheet, mildly supportive technicals, and an earnings-call narrative showing meaningful margin/profit improvement, cost control, strong liquidity and continued repurchases despite top-line pressure.
Positive Factors
Sustained margin expansion
Management delivered marked margin and profit improvement driven by cost discipline and efficiency gains. Higher and more stable operating margins improve earnings quality, provide buffer versus cyclical revenue swings, and support reinvestment or buybacks over the next several quarters.
Negative Factors
Declining GTV and revenue
Material declines in transaction volume and revenue reflect ongoing market weakness and make top‑line recovery uncertain. Even with margin gains, prolonged lower volumes can cap unit economics, limit scale benefits, and constrain long‑term growth unless volumes normalize.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained margin expansion
Management delivered marked margin and profit improvement driven by cost discipline and efficiency gains. Higher and more stable operating margins improve earnings quality, provide buffer versus cyclical revenue swings, and support reinvestment or buybacks over the next several quarters.
Read all positive factors
KE Holdings, Inc. Class A (2423) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$159.62B
Dividend Yield2.22%
Average Volume (3M)7.58M
Price to Earnings (P/E)2946.2
Beta (1Y)1.85
Revenue Growth-8.76%
EPS Growth-21.31%
CountryHK
Employees135,072
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.90
Shares Outstanding3,356,595,000
10 Day Avg. Volume7,095,048
30 Day Avg. Volume7,584,211
Financial Highlights & Ratios
PEG Ratio-1.63
Price to Book (P/B)1.87
Price to Sales (P/S)1.35
P/FCF Ratio-129.36
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$54.97Price Target Upside28.67% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)2.24
Revenue Forecast (FY)HK$102.53B
KE Holdings, Inc. Class A Business Overview & Revenue Model
Company Description
KE Holdings Inc., through its subsidiaries, engages in operating an integrated online and offline platform for housing transactions and services in the People's Republic of China. It operates through four segments: Existing Home Transaction Servic...
How the Company Makes Money
KE Holdings makes money primarily by earning service fees/commissions tied to real estate transactions and related services facilitated through its platform and network. Its key revenue streams include: (1) Existing-home transaction services: reve...
KE Holdings, Inc. Class A Earnings Call Summary
Earnings Call Date:May 19, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Sep 02, 2026
Earnings Call Sentiment Positive
The call emphasized meaningful, structural improvements in profitability, margins, per-capita productivity and cost discipline, supported by strong cash reserves and active share repurchases. These positive operational and margin trends were achieved despite YoY declines in GTV and revenue, with notable weakness in the new-home and renovation segments and a reported operating cash outflow driven by timing items. Management framed results as the start of a multi-year transformation (AI, productization, front-line reallocation) that should support sustainable, higher-quality growth. On balance, the highlights (profit/margin expansion, operational efficiency, rental scale growth, strong liquidity and repurchases, AI adoption) outweigh the lowlights (top-line declines, new-home contraction, renovation revenue weakness, temporary cash outflow), leading to a constructive but cautious outlook.Positive Updates
Strong profitability and margin expansion
Non-GAAP operating profit reached RMB 1.67 billion (+45.1% YoY, +416.2% QoQ); non-GAAP operating margin rose to 8.8% (highest in 7 quarters, +3.9 ppts YoY, +7.4 ppts QoQ). GAAP net income was RMB 1.26 billion (+46.7% YoY) and non-GAAP net income was RMB 1.61 billion (+15.7% YoY).
Negative Updates
Overall GTV and revenue decline
Group GTV was RMB 711.2 billion (down 15.6% YoY) and group revenue was RMB 18.9 billion (down 19.0% YoY), reflecting a high real-estate market base and ongoing market volatility.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong profitability and margin expansion
Non-GAAP operating profit reached RMB 1.67 billion (+45.1% YoY, +416.2% QoQ); non-GAAP operating margin rose to 8.8% (highest in 7 quarters, +3.9 ppts YoY, +7.4 ppts QoQ). GAAP net income was RMB 1.26 billion (+46.7% YoY) and non-GAAP net income was RMB 1.61 billion (+15.7% YoY).
Read all positive updates
Company Guidance
Management guided that the company will prioritize ROI‑disciplined, multi‑year transformation—focusing on cost‑structure optimization, AI‑driven empowerment, targeted pilots and prudent resource allocation—to sustain margin expansion and deliver year‑over‑year margin improvement for the full year; they pointed to Q1 proof points including non‑GAAP operating profit of RMB 1.67bn (+45.1% YoY, +416.2% QoQ) and non‑GAAP operating margin of 8.8% (7‑quarter high, +3.9pp YoY), gross margin ~24.1% (up ~3–3.5pp YoY), GAAP net income RMB 1.26bn (+46.7% YoY), revenue RMB 18.9bn (‑19% YoY) on GTV RMB 711.2bn (‑15.6% YoY), improving contribution margins across businesses (existing home 41.3%, new home 25.7%, renovation 36.2%, rental 14.8%), rental units >740k (+~47% YoY) with >40% of rental units on net‑method accounting, strong cash reserves (~RMB 65.6bn excl. customer deposits) despite ~USD195–200m repurchases in Q1 (USD2.7bn cumulative, ~13.5% pre‑program shares), and operational KPIs to watch (operating cash outflow Q1 RMB 1.5bn, new‑home A/R 64 days, AI platform coverage >7,100 employees with >4,400 apps and RMB4.12m business), while continuing to pilot products (e.g., Commit to Sell), put managers on the front line and scale only after data‑driven validation.KE Holdings, Inc. Class A Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
74
Positive
Cash Flow
38
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 92.13B | 93.46B | 77.78B | 60.67B | 80.75B |
| Gross Profit | 19.69B | 22.94B | 21.72B | 16.03B | 19.07B |
| EBITDA | 3.21B | 4.93B | 9.31B | 817.87M | 762.60M |
| Net Income | 2.92B | 4.06B | 5.88B | -1.39B | -524.13M |
Balance Sheet | |||||
| Total Assets | 116.72B | 133.15B | 120.33B | 122.77B | 122.72B |
| Cash, Cash Equivalents and Short-Term Investments | 55.55B | 52.76B | 53.89B | 54.90B | 49.85B |
| Total Debt | 18.52B | 22.65B | 17.99B | 12.19B | 7.51B |
| Total Liabilities | 49.90B | 61.70B | 48.13B | 45.24B | 40.69B |
| Stockholders Equity | 66.47B | 71.32B | 72.10B | 68.92B | 66.97B |
Cash Flow | |||||
| Free Cash Flow | -958.43M | 8.41B | 10.28B | 8.92B | 2.61B |
| Operating Cash Flow | -366.43M | 9.45B | 11.16B | 9.84B | 4.33B |
| Investing Cash Flow | 5.74B | -9.38B | -3.98B | -8.47B | -24.88B |
| Financing Cash Flow | -9.54B | -5.79B | -6.96B | -1.21B | -1.07B |
KE Holdings, Inc. Class A Technical Analysis
Positive
42.72
Price Trends
42.82
Positive
43.74
Positive
45.02
Positive
Market Momentum
1.54
Positive
51.28
Neutral
25.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2423, the sentiment is Positive. The current price of 42.72 is below the 20-day moving average (MA) of 45.45, below the 50-day MA of 42.82, and below the 200-day MA of 45.02, indicating a bullish trend. The MACD of 1.54 indicates Positive momentum. The RSI at 51.28 is Neutral, neither overbought nor oversold. The STOCH value of 25.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2423.
KE Holdings, Inc. Class A Risk Analysis
KE Holdings, Inc. Class A disclosed 95 risk factors in its most recent earnings report. KE Holdings, Inc. Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
KE Holdings, Inc. Class A Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | HK$104.54B | 11.54 | 25.39% | 2.92% | 5.89% | 9.36% | |
75 Outperform | HK$17.13B | 10.46 | 15.06% | 4.43% | 4.91% | 4.61% | |
71 Outperform | HK$14.44B | 12.63 | 11.18% | 2.78% | 6.95% | 28.21% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
61 Neutral | HK$20.45B | -49.97 | 4.63% | 1.77% | 2.94% | -39.39% | |
57 Neutral | HK$20.16B | -11.05 | 1.68% | 4.94% | 9.98% | -68.38% | |
54 Neutral | HK$159.62B | 2,946.16 | 4.29% | 2.22% | -8.76% | -21.31% |
* Real Estate Sector Average
HK:2423
KE Holdings, Inc. Class A
45.58
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-3.84%
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KE Holdings, Inc. Class A Corporate Events
KE Holdings Adds Language Details for May 19 Earnings Call
May 15, 2026
KE Holdings Inc. announced supplemental details for its upcoming board meeting and first-quarter 2026 earnings conference call, confirming that the management briefing on May 19, 2026, will be held in Chinese with simultaneous English interpretati...
KE Holdings Sets May 19 Board Meeting and Q1 2026 Earnings Call
May 7, 2026
KE Holdings Inc. has scheduled a board meeting for May 19, 2026 to review and approve the group’s unaudited financial results for the first quarter ended March 31, 2026, and to authorize their publication. The timing underscores the company&...
KE Holdings Files 2025 Form 20-F, Underscoring Dual-Market Compliance
Apr 24, 2026
KE Holdings Inc., a dual-listed real estate services platform with primary operations in China, has disclosed that it remains controlled through weighted voting rights and is governed by a board that includes executive, non-executive and independe...
KE Holdings Sets June 2026 AGM to Approve Governance Changes and Share Issuance Mandate
Apr 24, 2026
KE Holdings Inc. has called its annual general meeting for June 12, 2026, in Beijing, where shareholders will vote on the adoption of the audited financial statements for the year ended December 31, 2025, and the re-election of key board members, ...
KE Holdings Proposes Governance Charter Changes to Align With Hong Kong Code
Apr 23, 2026
KE Holdings Inc. has proposed amendments to its memorandum of association and articles of association as part of an effort to align its corporate governance framework with the latest Corporate Governance Code under the Hong Kong Listing Rules. The...
KE Holdings Grants 31.9 Million RSUs to 2,327 Employees Under 2020 Incentive Plan
Apr 1, 2026
KE Holdings Inc. has granted 31,869,519 restricted share units, equivalent to the same number of Class A ordinary shares, to 2,327 employees under its 2020 Share Incentive Plan, with no purchase price and no recipients among directors, chief execu...
KE Holdings Grants RSUs to Independent Director Under 2020 Incentive Plan
Mar 26, 2026
KE Holdings Inc. has granted 13,059 restricted share units to independent non-executive director Jun Wu under its 2020 Share Incentive Plan, with the award representing an equal number of underlying Class A ordinary shares and not requiring shareh...
KE Holdings Declares Final Cash Dividend and Updates Ex-Dividend Timeline
Mar 17, 2026
KE Holdings Inc. has declared a final ordinary cash dividend of USD 0.092 per share for the financial year ended 31 December 2025, payable in U.S. dollars through its Hong Kong share register. The dividend underscores the company’s ongoing r...
KE Holdings Grows Network as 2025 Profit Declines on Softer Housing Volumes
Mar 16, 2026
KE Holdings reported that in 2025 its gross transaction value slipped 5.0% to RMB3.18 trillion amid lower existing and new home volumes, but net revenues inched up 1.2% to RMB94.6 billion as the platform continued to monetize its scale. Net income...
KE Holdings Declares Final Cash Dividend for 2025 to Hong Kong Shareholders
Mar 16, 2026
KE Holdings Inc. has declared a final ordinary cash dividend of USD 0.092 per share for the financial year ended 31 December 2025, payable in U.S. dollars through its Hong Kong share register. The move underscores the company’s commitment to...
KE Holdings GTV Drops in 2025 as China Housing Slows, But Network Expands and Dividend Declared
Mar 16, 2026
KE Holdings reported a 5.0% decline in 2025 gross transaction value to RMB3.18 trillion, with existing and new home GTV both falling amid a weaker housing market, while full-year net revenues inched up 1.2% to RMB94.6 billion. Despite a 26.7% drop...
KE Holdings Sets March 16 Board Meeting to Review 2025 Results and Possible Dividend
Mar 4, 2026
KE Holdings Inc. has scheduled a board meeting for March 16, 2026 to review and approve the Group’s unaudited financial results for the fourth quarter and full year ended December 31, 2025. The board will also consider the potential payment ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.