KE Holdings, Inc. Class A (2423) AI Stock Analysis

• Market Cap: HK$177.10B
• Dividend Yield: 1.88%
• Average Volume (3M): 11.65M
• Price to Earnings (P/E): 36.0
• Beta (1Y): 2.03
• Revenue Growth: 34.42%
• EPS Growth: 28.35%
• Country: HK
• Employees: 135,072
• Sector: Real Estate
• Sector Strength: 58
• Industry: Real Estate - Services
• EPS (TTM): 0.43
• Shares Outstanding: 3,430,132,300
• 10 Day Avg. Volume: 8,063,671
• 30 Day Avg. Volume: 11,650,416
• PEG Ratio: 10.02
• Price to Book (P/B): 2.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.25
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$64.32
• Price Target Upside: 29.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 71 Outperform
• Price Target: HK$55.00 ▲(11.00%Upside)

KE Holdings demonstrates strong financial performance and promising growth via AI implementations, which significantly bolster its stock score. However, the high valuation and some operational challenges, such as declining margins and cash outflows, temper the overall score. The technical analysis offers a mixed outlook, reflecting the stock's current market position.

Positive Factors

Financial Stability

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.

Policy Support

KE Holdings is a direct proxy for physical market stabilization in China, benefiting from rising upgrader demand and policy support.

Negative Factors

Earnings Adjustment

Earnings for FY25-26 have been adjusted downward by 2-6% due to changes in GTV and cost assumptions.

Guidance and Earnings

Latest 2Q25 and full-year guidance fell short; revenue expectations in-line but margin outlook came in more reserved than expected.

Guidance Shortfall

Latest guidance fell short with revenue expectations in-line but margin outlook more reserved.

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 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 Money

KE 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 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 49.55
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 49.55 is above the 20-day moving average (MA) of 48.15, above the 50-day MA of 49.00, and below the 200-day MA of 50.93, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 54.15 is Neutral, neither overbought nor oversold. The STOCH value of 53.39 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6049	79 Outperform	HK$19.09B	11.86	16.04%	4.21%	6.53%	4.78%
2423	71 Outperform	HK$177.10B	36.03	6.53%	1.88%	34.42%	28.35%
Sector *	63 Neutral	$6.74B	18.42	-1.93%	6.82%	4.67%	-25.44%
CTRGF	―	$2.87B	11.42	4.96%	0.30%	―	―
1209	73 Outperform	HK$84.68B	21.52	22.39%	20.34%	13.34%	21.64%
2869	73 Outperform	HK$14.31B	19.30	8.94%	2.86%	1.01%	12.45%
2602	66 Neutral	HK$25.64B	20.67	6.76%	4.67%	7.13%	-42.14%

KE Holdings, Inc. Class A Corporate Events

KE Holdings Grants Over 20 Million RSUs to Employees

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

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

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

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

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.

KE Holdings Inc. Schedules Board Meeting and Earnings Call for Q1 2025 Results

KE Holdings Inc. has announced a board meeting scheduled for May 15, 2025, to review and approve the company’s unaudited financial results for the first quarter of 2025. The company will also host an earnings conference call on the same day, providing stakeholders with insights into its financial performance and strategic direction.