KE Holdings, Inc. Class A (HK:2423)
:2423
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KE Holdings, Inc. Class A
(2423)
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Rating:64Neutral
Price Target:
HK$56.00
▲(31.09% Upside)
Action:ReiteratedDate:01/30/26
The score is primarily driven by strong revenue growth and a solid balance sheet, but is held back by profitability pressure and weak cash conversion. Technically, momentum is positive, yet overbought signals increase near-term risk. A high P/E further limits upside unless earnings and margins re-accelerate; the latest earnings call reinforced this mixed backdrop with improving efficiency and rentals but declining net income and softer transaction trends.
Positive Factors
Revenue Growth
Sustained high top-line growth indicates successful platform adoption and expanding service penetration across China’s housing market. Durable revenue expansion provides runway for reinvestment in tech, agent services and geographic scale, supporting multi-quarter strategic initiatives.
Negative Factors
Margin Pressure
Compressing gross and net margins reflect mix shifts and cost pressures that erode the company’s profitability buffer. Persistently thin margins limit reinvestment capacity and returns to shareholders, requiring sustained efficiency gains or higher-margin offerings to restore durable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained high top-line growth indicates successful platform adoption and expanding service penetration across China’s housing market. Durable revenue expansion provides runway for reinvestment in tech, agent services and geographic scale, supporting multi-quarter strategic initiatives.
Read all positive factors
KE Holdings, Inc. Class A (2423) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$138.74B
Dividend Yield2.22%
Average Volume (3M)7.58M
Price to Earnings (P/E)42.5
Beta (1Y)1.85
Revenue Growth25.03%
EPS Growth-15.27%
CountryHK
Employees135,072
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.17
Shares Outstanding3,356,595,000
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$55.50Price Target Upside29.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)2.12
Revenue Forecast (FY)HK$101.35B
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 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 facilit...
KE Holdings, Inc. Class A Earnings Call Summary
Earnings Call Date:Mar 16, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 14, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: the company is making measurable progress on strategic priorities (diversification, cost optimization, AI enablement) and several operating segments show improving unit economics (rental, renovation, margins improvement). However, near-term top-line and bottom-line performance were materially weaker YoY due to a high base, market volatility and one-off optimization costs. The narrative stresses long-term resilience and efficiency-driven transformation but acknowledges meaningful short-term headwinds.Positive Updates
Diversified revenue mix and platform resilience
Non-housing transaction revenue reached a record high of 41% of total revenue; existing-home GTV accounted for 67.6% of total GTV, and GTV contribution from connected brands rose to ~63% of existing-home GTV — signaling a more countercyclical and lighter-revenue mix that outperformed broader industry trends.
Negative Updates
Significant Q4 top-line contraction
Q4 GTV declined to RMB 724.1 billion (down 36.7% YoY) and Q4 revenue was RMB 22.2 billion (down 28.7% YoY), driven by a high 2024 base and softer transaction volumes across segments.
Read all updates
Q4-2025 Updates
Positive
Negative
Diversified revenue mix and platform resilience
Non-housing transaction revenue reached a record high of 41% of total revenue; existing-home GTV accounted for 67.6% of total GTV, and GTV contribution from connected brands rose to ~63% of existing-home GTV — signaling a more countercyclical and lighter-revenue mix that outperformed broader industry trends.
Read all positive updates
Company Guidance
Management guided that in 2026 Beike will maintain a neutral market view with prudent financial discipline, balancing efficiency and growth while validating its decision‑support service model (testing improvements in conversion rates and unit economics) and continuing to optimize its capital‑efficient structure; this follows 2025 actions including share repurchases of ~USD 921M (≈4.1% of shares at end‑2024) and a final cash dividend of ~USD 0.3B for total shareholder returns of ~USD 1.22B (≈170% of 2025 non‑GAAP net profit), and comes with cash liquidity of ~RMB 68.7B (ex‑customer deposits) after Q4 net operating cash inflow of RMB 1.9B. Management emphasized driving further efficiency gains that underpinned 2025 improvements—overall operating expense ratio down 1.4 pp YoY, existing‑home contribution margin 40.4%, new‑home contribution margin 28.3%, full‑year renovation contribution margin 31.4% (Q4 renovation revenue RMB 3.6B), rental full‑year contribution margin 8.6% with >700,000 managed units (+62% YoY; Q4 rental revenue RMB 5.4B; Q4 rental margin 10.4%)—while operating from 2025 baselines of Q4 GTV RMB 724.1B (‑36.7% YoY), Q4 revenue RMB 22.2B (‑28.7% YoY), Q4 gross margin 21.4%, Q4 GAAP net income RMB 82M and Q4 non‑GAAP net income RMB 517M.KE Holdings, Inc. Class A Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
75
Positive
Cash Flow
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
42.72
Price Trends
43.84
Negative
43.41
Negative
45.54
Negative
Market Momentum
-1.63
Positive
35.66
Neutral
7.23
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 42.72 is above the 20-day moving average (MA) of 40.82, below the 50-day MA of 43.84, and below the 200-day MA of 45.54, indicating a bearish trend. The MACD of -1.63 indicates Positive momentum. The RSI at 35.66 is Neutral, neither overbought nor oversold. The STOCH value of 7.23 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | HK$17.39B | 4.67 | 15.52% | 4.43% | 6.54% | 3.26% | |
78 Outperform | HK$106.73B | 22.77 | 23.11% | 2.92% | 10.31% | 8.93% | |
71 Outperform | HK$13.65B | 15.46 | 11.18% | 2.78% | -0.95% | 14.89% | |
66 Neutral | HK$20.03B | 30.82 | 1.68% | 4.94% | 7.23% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | HK$138.74B | 42.51 | 4.29% | 2.22% | 25.03% | -15.27% | |
58 Neutral | HK$19.85B | 28.27 | 4.63% | 1.77% | 5.75% | -31.63% |
* Real Estate Sector Average
HK:2423
KE Holdings, Inc. Class A
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KE Holdings, Inc. Class A Corporate Events
KE Holdings Grants Over 1.2 Million RSUs to 66 Employees Under 2020 Incentive Plan
Dec 31, 2025
KE Holdings Inc. has approved the grant of 1,217,241 restricted share units (RSUs), representing an equal number of Class A ordinary shares, to 66 employees under its 2020 Share Incentive Plan, effective January 1, 2026. The grants, which do not r...
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 transaction...
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.