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KE Holdings, Inc. Class A (HK:2423)
:2423
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KE Holdings, Inc. Class A
(2423)
Select Model
Select Model
Rating:64Neutral
Price Target:
HK$48.00
▲(15.05% Upside)
KE Holdings shows strong revenue growth and a solid balance sheet, which are significant strengths. However, declining profit margins, high P/E ratio, and bearish technical indicators present challenges. The mixed sentiment from the earnings call further underscores the need for improved profitability and operational efficiency.
Positive Factors
Revenue Growth
Consistent revenue growth indicates the company's ability to maintain its market position and expand its service offerings, supporting long-term business sustainability.
AI Integration
Integrating AI into operations enhances efficiency and customer experience, providing a competitive edge and supporting future profitability.
Strong Balance Sheet
A strong balance sheet with low leverage provides financial stability and flexibility, enabling the company to invest in growth opportunities and weather economic fluctuations.
Negative Factors
Declining Profitability
A significant decline in profitability can impact the company's ability to reinvest in its business and return value to shareholders, posing a risk to long-term growth.
Liquidity Concerns
Reduced free cash flow indicates potential liquidity issues, which can limit the company's ability to fund operations and invest in growth initiatives.
Gross Margin Decline
A declining gross margin suggests increasing cost pressures and challenges in maintaining pricing power, which can affect long-term profitability.
KE Holdings, Inc. Class A (2423) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$145.20B
Dividend Yield2.24%
Average Volume (3M)7.58M
Price to Earnings (P/E)38.9
Beta (1Y)1.90
Revenue Growth25.03%
EPS Growth-15.27%
CountryHK
Employees135,072
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.41
Shares Outstanding3,366,778,000
10 Day Avg. Volume7,095,048
30 Day Avg. Volume7,584,211
Financial Highlights & Ratios
PEG Ratio-1.30
Price to Book (P/B)2.13
Price to Sales (P/S)1.62
P/FCF Ratio18.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$54.31Price Target Upside30.18% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
KE Holdings, Inc. Class A Business Overview & Revenue Model
Company DescriptionKE Holdings, Inc. Class A (2423) is a leading technology-driven real estate services company based in China, primarily operating under its flagship platform, Beike. The company integrates online and offline real estate services, catering to home buyers, sellers, and real estate agents. KE Holdings operates in the residential property sector, offering services such as property listings, transaction facilitation, and various related services. The company utilizes advanced technology to streamline the property transaction process and enhance the consumer experience.
How the Company Makes MoneyKE Holdings generates revenue primarily through its real estate services, which include online listings, transaction services, and advertising. The company earns a significant portion of its income from commissions on property transactions facilitated through its platform. Additionally, KE Holdings offers value-added services to real estate agents, creating another revenue stream. The company has established partnerships with various real estate developers and agencies, which enhances its inventory and service offerings, contributing to its overall earnings. Moreover, by leveraging big data and AI technologies, KE Holdings is able to provide tailored services that improve customer engagement and retention, further boosting its revenue potential.
KE Holdings, Inc. Class A Earnings Call Summary
Earnings Call Date:Nov 10, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 12, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment. While there were notable achievements in revenue growth, share repurchase, and operational efficiency, the company faced challenges with a significant decline in net income, existing and new home transaction challenges, and a decrease in gross margin.Q3-2025 Updates
Positive Updates
Revenue Growth and Share Repurchase
Total revenues reached RMB 23.1 billion, up 2.1% year-over-year. The company achieved the highest share repurchase spending in the past 2 years, with a cumulative amount of approximately USD 675 million, up 15.7% year-over-year.
Home Rental Services Surge
Revenue from home rental services reached a record high of RMB 5.7 billion in Q3, up 45.3% year-over-year, driven by rapid growth in the number of rental units under management.
Improved Operational Efficiency
The company optimized costs and expenses, significantly enhancing shareholder returns and achieving city-level profitability in home renovation and rental business before deducting headquarter expenses.
Negative Updates
Decline in Net Income
GAAP net income was RMB 747 million, down 36.1% year-over-year. Non-GAAP net income was RMB 1.29 billion, down 27.8% year-over-year.
Existing and New Home Transaction Challenges
Revenue from existing home transactions reached RMB 6 billion, down 3.6% year-over-year. New home GTV was RMB 196.3 billion, down 13.7% year-over-year, with revenue from new home transactions decreasing by 14.1% year-over-year.
Gross Margin Decline
Gross margin declined by 1.3 percentage points year-over-year to 21.4%, primarily due to structural impacts and a decrease in contribution margin from the existing home business.
Company Guidance
During the third quarter of 2025, KE Holdings achieved significant milestones in its financial and operational performance. The company's total gross transaction volume (GTV) was RMB 736.7 billion, flat year-over-year, while total revenues increased by 2.1% to RMB 23.1 billion. The gross margin was 21.4%, a decrease of 1.3 percentage points from the previous year. GAAP net income fell by 36.1% year-over-year to RMB 747 million, and non-GAAP net income decreased by 27.8% to RMB 1.29 billion. The company highlighted its strategic focus on balancing scale and efficiency, optimizing cost structures, and enhancing shareholder returns, with share repurchase spending reaching a two-year high in a single quarter. In its home rental services, the company reported a record revenue of RMB 5.7 billion, marking a 45.3% increase year-over-year, driven by an increase in rental units under management to over 660,000. The contribution margin for home rental services improved by 4.3 percentage points year-over-year. KE Holdings also emphasized its strategic developments in AI technology to enhance operational efficiency and profitability across its business segments.KE Holdings, Inc. Class A Financial Statement Overview
Summary
KE Holdings demonstrates strong revenue growth and a solid balance sheet, positioning it well for future expansion. However, declining profit margins and mixed cash flow metrics highlight areas for improvement. The company should focus on enhancing operational efficiency and profitability to sustain its growth trajectory and improve financial stability.Income Statement
KE Holdings shows strong revenue growth with a TTM growth rate of 45.4%, indicating robust expansion. However, margins have declined compared to previous years, with the TTM gross profit margin at 22.15% and net profit margin at 3.78%. The EBIT and EBITDA margins have also decreased, reflecting potential cost pressures. Overall, the company demonstrates growth potential but faces challenges in maintaining profitability margins.70
Positive
Balance Sheet
The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.32, indicating prudent financial leverage. The equity ratio stands at 56.84%, showcasing a strong equity base. However, the return on equity has slightly decreased to 5.58% in the TTM, suggesting a need for improved profitability to enhance shareholder returns.75
Positive
Cash Flow
Cash flow analysis reveals a mixed performance. The TTM free cash flow growth rate is positive at 19.82%, indicating improved cash generation. However, the operating cash flow to net income ratio is relatively low at 0.055, suggesting potential challenges in converting income into cash. The free cash flow to net income ratio remains strong at 0.81, reflecting efficient cash management.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 103.52B | 93.46B | 77.78B | 60.67B | 80.75B | 70.48B |
| Gross Profit | 22.63B | 22.94B | 21.72B | 16.03B | 19.07B | 18.95B |
| EBITDA | 4.88B | 4.93B | 9.31B | 817.87M | 762.60M | 4.25B |
| Net Income | 3.48B | 4.06B | 5.88B | -1.39B | -524.13M | 2.78B |
Balance Sheet | ||||||
| Total Assets | 119.30B | 133.15B | 120.33B | 122.77B | 122.72B | 123.66B |
| Cash, Cash Equivalents and Short-Term Investments | 48.99B | 52.76B | 53.89B | 54.90B | 49.85B | 56.66B |
| Total Debt | 21.10B | 22.65B | 17.99B | 12.19B | 7.51B | 7.99B |
| Total Liabilities | 51.36B | 61.70B | 48.13B | 45.24B | 40.69B | 44.47B |
| Stockholders Equity | 67.84B | 71.32B | 72.10B | 68.92B | 66.97B | 66.77B |
Cash Flow | ||||||
| Free Cash Flow | 2.43B | 8.41B | 10.28B | 8.92B | 2.61B | 9.52B |
| Operating Cash Flow | 2.91B | 9.45B | 11.16B | 9.84B | 4.33B | 10.52B |
| Investing Cash Flow | 4.99B | -9.38B | -3.98B | -8.47B | -24.88B | -14.98B |
| Financing Cash Flow | -7.97B | -5.79B | -6.96B | -1.21B | -1.07B | 25.41B |
KE Holdings, Inc. Class A Technical Analysis
Negative
41.72
Price Trends
44.54
Negative
46.82
Negative
49.08
Negative
Market Momentum
-0.71
Positive
39.28
Neutral
5.86
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2423, the sentiment is Negative. The current price of 41.72 is below the 20-day moving average (MA) of 43.72, below the 50-day MA of 44.54, and below the 200-day MA of 49.08, indicating a bearish trend. The MACD of -0.71 indicates Positive momentum. The RSI at 39.28 is Neutral, neither overbought nor oversold. The STOCH value of 5.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | HK$18.56B | 11.27 | 15.94% | 4.34% | 6.54% | 3.26% | |
70 Outperform | HK$14.25B | 16.60 | 10.30% | 2.88% | -0.95% | 14.89% | |
67 Neutral | HK$99.43B | 24.56 | 23.11% | 2.94% | 10.31% | 8.93% | |
66 Neutral | HK$20.83B | 14.04 | 3.72% | 4.92% | 7.23% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | HK$145.20B | 38.91 | 5.57% | 2.24% | 25.03% | -15.27% | |
58 Neutral | HK$22.09B | 17.41 | 7.08% | 1.74% | 5.75% | -31.63% |
* Real Estate Sector Average
HK:2423
KE Holdings, Inc. Class A
41.58
-4.81
-10.37%
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KE Holdings, Inc. Class A Corporate Events
KE Holdings Reports Q3 2025 Financial Results with Stable GTV and Revenue Growth
Nov 10, 2025
KE Holdings Inc. reported its unaudited financial results for the third quarter of 2025, showing a stable gross transaction value (GTV) of RMB736.7 billion, with a slight increase in existing home transactions and a decline in new home transactions. The company’s net revenues rose by 2.1% year-over-year to RMB23.1 billion, while net income decreased by 36.1% to RMB747 million. Despite the decline in net income, the company expanded its number of stores and agents significantly, and its mobile monthly active users increased to 49.3 million. KE Holdings is focusing on improving operational efficiency and customer experience through technological innovations, such as integrating AI into home rental services, which contributed over RMB100 million in profit for the quarter.
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.