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KE Holdings, Inc. Class A (HK:2423)
:2423
RESEARCH TOOLSreports
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KE Holdings, Inc. Class A
(2423)
Rating:64Neutral
Price Target:
HK$50.00
▲(9.89% Upside)
Positive Factors
Financial Position
KE Holdings has RMB54.6bn in net cash on hand, making it one of the most direct proxies to ride on rising upgrader demand and upcoming wave of policy support.
Market Leadership
KE Holdings is the unparalleled leader in both first and second home transaction markets, with continually increasing market share.
Negative Factors
Earnings Adjustment
Cut FY25-26F earnings by 2-13% on adjusted GTV and cost assumptions.
Financial Guidance
Latest 2Q25 and full-year guidance fell short; revenue expectations in-line but margin outlook came in more reserved than expected.
KE Holdings, Inc. Class A (2423) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$180.74B
Dividend Yield1.98%
Average Volume (3M)7.66M
Price to Earnings (P/E)42.2
Beta (1Y)1.98
Revenue Growth32.25%
EPS Growth-2.34%
CountryHK
Employees135,072
SectorReal Estate
Sector Strength52
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.56
Shares Outstanding3,430,132,300
10 Day Avg. Volume10,196,033
30 Day Avg. Volume7,661,637
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$54.50Price Target Upside19.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
KE Holdings, Inc. Class A Business Overview & Revenue Model
Company DescriptionKE 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 Services, New Home Transaction Services, Home Renovation and Furnishing, and Emerging and Other Services. The company provides Beike, an integrated online and offline platform for housing transactions and services; Agent Cooperation Network, an operating system that fosters reciprocity and bonding among various service providers; SaaS Systems; owns and operates Lianjia, a real estate brokerage branded store; owns Deyou brand for connected brokerage stores; and other brands. The company was founded in 2001 and is headquartered in Beijing, the People's Republic of China.
How the Company Makes MoneyKE Holdings makes money through a multi-faceted revenue model primarily driven by commission-based services in real estate transactions. The company earns commissions from facilitating property sales and rentals, leveraging its platform to connect buyers with sellers and landlords with tenants. Additionally, KE Holdings offers value-added services such as mortgage financing, interior renovation, and property management, which contribute to its revenue streams. The company has established significant partnerships with real estate developers, financial institutions, and other service providers to enhance its offerings and expand its market reach. These partnerships, along with a strong online presence and a wide network of real estate agents, play a crucial role in driving the company's earnings.
KE Holdings, Inc. Class A Earnings Call Summary
Earnings Call Date:Aug 26, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 19, 2025
Earnings Call Sentiment Neutral
The earnings call presented mixed results. While there were strong performances in new home transactions and home rental services, significant declines in net income and gross margin were noted. The expansion of the agent and store network and the diversification of revenue streams were positive, but the overall financial performance was affected by external market conditions.Q2-2025 Updates
Positive Updates
Strong Growth in New Home Transactions
New home orders on our platform increased by 19%, outperforming the market, which declined by 6%, both year-over-year.
Home Rental Services Surge
Revenue from our home rental services business reached a record high of RMB5.7 billion in Q2, up 78% year-over-year.
Expansion of Agent and Store Network
The number of active stores on our platform increased by 30%, and the number of active agents leaped by 19.5% in the first half of the year, both year-over-year.
Revenue Growth and Diversification
Total revenues reached RMB26 billion, up 11.3% year-over-year, with non-housing transaction services accounting for 41% of total revenues in Q2.
Increase in Existing Home Sales Proportion
Existing home sales transactions on our platform rose by 26% year-over-year, outpacing the market’s growth rate of 19%.
Negative Updates
Decline in Gross Margin
Gross margin declined by 6 percentage points year-over-year to 21.9%.
Decrease in Net Income
GAAP net income was RMB1.31 billion, falling 31.2% year-over-year. Non-GAAP net income reached RMB1.82 billion, down 32.4% year-over-year.
Challenges in Existing Home Transaction Services
Revenue from existing home transactions reached RMB6.7 billion in Q2, down 8.4% year-over-year.
Softening Real Estate Market
The slowdown in the real estate market was largely due to international trade friction and the fading impact of earlier policy measures.
Company Guidance
In the second quarter of 2025, KE Holdings Inc. reported a total Gross Transaction Value (GTV) of RMB878.7 billion, marking a 4.7% year-over-year increase. Total revenues reached RMB26 billion, up 11.3% from the previous year. Despite these gains, the company's gross margin decreased by 6 percentage points to 21.9%, and GAAP net income fell by 31.2% year-over-year to RMB1.31 billion. Non-GAAP net income also declined by 32.4% to RMB1.82 billion. The company saw significant growth in its home rental services, with revenue reaching RMB5.7 billion, an increase of 78% year-over-year, and it managed over 590,000 rental units by the end of Q2. KE Holdings continued to expand its network, with a 30% increase in active stores and a 19.5% rise in active agents in the first half of 2025. The company's existing home sales transactions rose by 26%, surpassing the market’s estimated growth of 19%, while new home orders increased by 19%, outperforming the market's 6% decline. Despite the challenges, KE Holdings remains focused on operational efficiency and technological integration to enhance productivity and maintain its competitive edge.KE Holdings, Inc. Class A Financial Statement Overview
Summary
KE Holdings, Inc.'s financial performance is robust, with strong revenue and profit growth, efficient cost management, and a stable balance sheet. The company maintains a good balance between debt and equity, supporting financial stability. Despite a slight decline in free cash flow growth, the company's cash generation capabilities remain strong.Income Statement
KE Holdings demonstrated strong revenue growth with a TTM revenue of 100.41 billion, up from 93.46 billion last year, indicating a revenue growth rate of 7.43%. Gross profit margin stands at 23.54%, showing efficient cost management. The EBIT and EBITDA margins are 4.33% and 4.75%, respectively, reflecting moderate operational profitability. The net profit margin improved to 4.47%, showcasing enhanced profitability.85
Very Positive
Balance Sheet
The balance sheet reveals a solid equity structure with a debt-to-equity ratio of 0.32, indicating manageable leverage. The equity ratio is 52.71%, suggesting a strong reliance on equity financing. Return on equity (ROE) is 6.52%, reflecting decent returns for shareholders. Overall, the company maintains a stable financial position with adequate asset management.78
Positive
Cash Flow
Cash flow analysis shows a stable operating cash flow to net income ratio of 1.44, indicating strong cash generation relative to net income. Free cash flow to net income ratio is 1.44, demonstrating effective cash utilization. The free cash flow growth rate is negative due to a reduction in operating cash flow from the previous year, but overall cash flow remains robust.80
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 93.46B | 77.78B | 70.55B | 97.32B | 79.20B |
| Gross Profit | 22.94B | 21.72B | 16.03B | 19.07B | 18.95B |
| EBITDA | 4.93B | 9.31B | 817.87M | 762.60M | 4.25B |
| Net Income | 4.06B | 5.88B | -1.61B | -631.69M | 2.78B |
Balance Sheet | |||||
| Total Assets | 133.15B | 120.33B | 122.77B | 122.72B | 123.66B |
| Cash, Cash Equivalents and Short-Term Investments | 52.76B | 53.89B | 68.58B | 68.67B | 77.33B |
| Total Debt | 22.65B | 17.99B | 13.69B | 9.19B | 9.47B |
| Total Liabilities | 61.70B | 48.13B | 45.24B | 40.69B | 44.47B |
| Stockholders Equity | 71.32B | 72.10B | 77.38B | 81.93B | 79.16B |
Cash Flow | |||||
| Free Cash Flow | 8.41B | 10.28B | 8.92B | 2.61B | 9.52B |
| Operating Cash Flow | 9.45B | 11.16B | 9.84B | 4.33B | 10.52B |
| Investing Cash Flow | -9.38B | -3.98B | -9.85B | -29.99B | -17.11B |
| Financing Cash Flow | -5.79B | -6.96B | -1.34B | -1.29B | 28.82B |
KE Holdings, Inc. Class A Technical Analysis
Negative
45.50
Price Trends
48.36
Negative
49.36
Negative
49.98
Negative
Market Momentum
-0.20
Positive
41.62
Neutral
21.89
Neutral
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 45.5 is below the 20-day moving average (MA) of 47.68, below the 50-day MA of 48.36, and below the 200-day MA of 49.98, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 41.62 is Neutral, neither overbought nor oversold. The STOCH value of 21.89 is Neutral, 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
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | HK$19.86B | 12.26 | 15.94% | 4.05% | 6.54% | 3.26% | |
64 Neutral | HK$180.74B | 42.20 | 5.57% | 1.98% | 32.25% | -2.34% | |
63 Neutral | $7.06B | 13.38 | -0.50% | 6.96% | 4.08% | -25.24% | |
| ― | $2.78B | 16.67 | 3.72% | 4.10% | ― | ― | |
74 Outperform | HK$29.32B | 23.02 | 7.08% | 4.57% | 5.75% | -31.63% | |
73 Outperform | HK$15.59B | 18.11 | 10.30% | 2.70% | -0.95% | 14.89% | |
66 Neutral | HK$85.37B | 21.34 | 23.11% | 3.78% | 10.31% | 8.93% |
* Real Estate Sector Average
Performance Comparison
HK:2423
KE Holdings, Inc. Class A
45.50
8.08
21.59%
CTRGF
Country Garden Services Holdings Co
0.95
0.42
79.25%
HK:1209
China Resources Mixc Lifestyle Services Ltd.
37.40
14.91
66.30%
HK:2602
Onewo, Inc. Class H
25.10
9.46
60.49%
HK:2869
Greentown Service Group Co. Ltd.
4.95
1.57
46.45%
HK:6049
Poly Property Services Co., Ltd. Class H
35.16
11.32
47.48%
KE Holdings, Inc. Class A Corporate Events
KE Holdings Grants Over 20 Million RSUs to Employees
Jul 2, 2025
KE Holdings Inc. announced the grant of 20,089,155 restricted share units (RSUs) to 2,450 employees under its 2020 Share Incentive Plan. This move, which does not require shareholder approval, aims to align employees’ interests with those of shareholders and incentivize performance. The RSUs have varied vesting schedules, with some vesting immediately and others over a period of up to 48 months. The initiative is expected to enhance employee motivation and retention, contributing to the company’s strategic goals.
The most recent analyst rating on (HK:2423) stock is a Buy with a HK$50.00 price target. To see the full list of analyst forecasts on KE Holdings, Inc. Class A stock, see the HK:2423 Stock Forecast page.
KE Holdings Inc. Announces Successful AGM with All Resolutions Passed
Jun 27, 2025
KE Holdings Inc. successfully held its Annual General Meeting (AGM) on June 27, 2025, in Beijing, where all proposed resolutions were passed. The voting process was conducted by poll, with a significant majority of shareholders voting in favor of the resolutions, including the re-election of Mr. Jeffrey Zhaohui Li as a non-executive director. This outcome reflects strong shareholder support and is likely to positively impact the company’s governance and strategic direction.
The most recent analyst rating on (HK:2423) stock is a Buy with a HK$50.00 price target. To see the full list of analyst forecasts on KE Holdings, Inc. Class A stock, see the HK:2423 Stock Forecast page.
KE Holdings Inc. Revamps Nomination Committee Charter
Jun 23, 2025
KE Holdings Inc. has updated its Nomination Committee Charter to enhance the selection and recommendation process for board candidates, ensuring compliance with listing requirements on various stock exchanges. This move aims to strengthen board composition and governance, potentially impacting the company’s strategic direction and stakeholder confidence.
The most recent analyst rating on (HK:2423) stock is a Buy with a HK$50.00 price target. To see the full list of analyst forecasts on KE Holdings, Inc. Class A stock, see the HK:2423 Stock Forecast page.
KE Holdings Inc. Postpones Annual General Meeting to June 27, 2025
Jun 3, 2025
KE Holdings Inc. has announced the postponement of its Annual General Meeting (AGM) originally scheduled for June 13, 2025, to June 27, 2025, due to the need for work arrangements coordination and actual conditions of the company. The venue remains unchanged, and shareholders are encouraged to submit their proxy forms or voting instructions by the specified deadlines to ensure their participation in the decision-making process.
The most recent analyst rating on (HK:2423) stock is a Buy with a HK$50.00 price target. To see the full list of analyst forecasts on KE Holdings, Inc. Class A stock, see the HK:2423 Stock Forecast page.
KE Holdings Inc. Reports Robust Q1 2025 Financial Results
May 15, 2025
KE Holdings Inc. reported a strong financial performance for the first quarter of 2025, with a 34% year-over-year increase in gross transaction value and a 42.4% rise in net revenues. The company’s net income nearly doubled, and it saw substantial growth in the number of stores and agents, reflecting the effectiveness of its growth strategy. The company also highlighted advancements in AI applications to enhance customer experience and service efficiency, positioning itself strongly in the housing transaction services market.
The most recent analyst rating on (HK:2423) stock is a Buy with a HK$50.00 price target. To see the full list of analyst forecasts on KE Holdings, Inc. Class A stock, see the HK:2423 Stock Forecast page.
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.