KE Holdings, Inc. Class A (HK:2423)
:2423
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KE Holdings, Inc. Class A
(2423)
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Rating:53Neutral
Price Target:
HK$42.00
â–¼(-1.69% Downside)
Action:ReiteratedDate:04/29/26
The score is held back primarily by weakened fundamentals—especially the 2025 swing to negative operating/free cash flow and softer revenue/margins—plus an expensive valuation (P/E ~42.5). Offsetting factors include a solid balance sheet with moderate leverage and a constructive (but cautious) earnings call focused on efficiency improvements, while technicals remain broadly neutral.
Positive Factors
Diversified revenue mix
A structurally larger non-housing revenue mix (41% of total) reduces reliance on cyclical home transactions and creates more countercyclical, services-based cash flows. Over 2–6 months this supports steadier revenue and better resiliency through housing cycles as platform services and ancillary fees scale.
Negative Factors
Revenue and margin weakness
An ongoing downshift in revenue and materially compressed net margins signal weaker core earnings power. If this trend persists, it limits reinvestment capacity and reduces margin buffer for cyclical shocks. Over months this raises the bar for operational improvements to restore sustainable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified revenue mix
A structurally larger non-housing revenue mix (41% of total) reduces reliance on cyclical home transactions and creates more countercyclical, services-based cash flows. Over 2–6 months this supports steadier revenue and better resiliency through housing cycles as platform services and ancillary fees scale.
Read all positive factors
KE Holdings, Inc. Class A (2423) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$144.29B
Dividend Yield2.22%
Average Volume (3M)7.58M
Price to Earnings (P/E)42.5
Beta (1Y)1.85
Revenue Growth1.24%
EPS Growth-25.45%
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-1.63
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$55.55Price Target Upside30.03% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)2.12
Revenue Forecast (FY)HK$101.40B
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: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
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
Neutral
42.72
Price Trends
42.94
Negative
43.34
Negative
45.28
Negative
Market Momentum
-0.11
Negative
54.44
Neutral
88.82
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2423, the sentiment is Neutral. The current price of 42.72 is above the 20-day moving average (MA) of 40.30, below the 50-day MA of 42.94, and below the 200-day MA of 45.28, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 54.44 is Neutral, neither overbought nor oversold. The STOCH value of 88.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$17.06B | 6.11 | 15.06% | 4.43% | 4.84% | 4.54% | |
78 Outperform | HK$106.73B | 11.54 | 25.39% | 2.92% | 5.89% | 9.36% | |
71 Outperform | HK$14.00B | 15.46 | 11.18% | 2.78% | 6.95% | 28.21% | |
66 Neutral | HK$19.90B | 30.82 | 1.68% | 4.94% | 9.98% | -68.38% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
61 Neutral | HK$19.72B | 28.27 | 4.63% | 1.77% | 2.94% | -39.39% | |
53 Neutral | HK$144.29B | 42.51 | 4.29% | 2.22% | 1.24% | -25.45% |
* Real Estate Sector Average
HK:2423
KE Holdings, Inc. Class A
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-22.11%
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KE Holdings, Inc. Class A Corporate Events
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.