Investment Rating - The report indicates a positive investment sentiment towards the company, highlighting its commitment to shareholder returns through stock buybacks and dividends [12]. Core Insights - The company has increased its stock buyback plan from $2 billion to $3 billion, extending the duration until August next year, demonstrating a strong commitment to enhancing shareholder value [2][12]. - The company has repurchased a total of $1.39 billion in shares since initiating its buyback program in September 2022, ranking eighth in the Hong Kong stock market for buyback amounts this year [3][13]. - The company reported a 19.9% year-on-year increase in net revenue for Q2, reaching 23.4 billion yuan, with significant contributions from its home decoration and rental services [8][13]. Summary by Sections Stock Buyback and Dividends - The company has executed a total of $1.39 billion in stock buybacks, with a significant portion of shares being canceled rather than held as treasury stock [3][4]. - The company has also declared a special dividend of $600 million, marking its first dividend distribution since its listing [12]. Business Performance - The company experienced a 25% increase in transaction volume for existing homes and a 22.3% increase in home decoration services, while new home transactions declined by 20.2% [7][8]. - The rental service revenue surged by 167.1%, contributing significantly to overall revenue growth [8]. Strategic Transformation - The company is transitioning to a one-stop residential service platform, integrating home decoration and rental services to enhance customer experience and operational efficiency [9][10]. - The company’s operational cash flow turned positive in Q2, with a total of 3.86 billion yuan in cash flow for the first half of the year [10][11]. Long-term Commitment to Shareholders - The company emphasizes its responsibility to long-term investors, showcasing a consistent positive cash flow since 2019 and a low debt ratio of 42.3% [11][12]. - The management expresses confidence in the company's growth potential and commitment to sharing success with shareholders [12][13].

房地产/房地产服务 公 司 研 究 贝壳-W（02423.HK） 2024 年 08 月 14 日 投资评级：增持（维持） | --- | --- | |--------------------|---------------| | 日期 | 2024/8/14 | | 当前股价(港元) | 37.750 | | 一年最高最低(港元) | 55.400/32.400 | | 总市值(亿港元) | 1,384.58 | | 流通市值(亿港元) | 1,337.74 | | 总股本(亿股) | 36.68 | | 流通港股(亿股) | 35.44 | | 近 3 个月换手率(%) | 1.97 | 股价走势图 贝壳-W 恒生指数 -32% -16% 0% 16% 32% 48% 2023-08 2023-12 2024-04 数据来源：聚源 相关研究报告 《政策密集有助主业企稳，新业务扩 张驱动二次增长—港股公司信息更新 报告》-2024.5.27 《持续提升主业份额，等待家装业务 驱动二次增长—港股公司信息更新报 告》-2024.3.16 《主业韧性超预期，家装家居持续拓 展 — 港 股 公 司 信 息 更 新 ...

Investment Rating - The investment rating for the company is "Outperform the Market" [3][38]. Core Views - The company's Q2 revenue and net profit have shown significant improvement both year-on-year and quarter-on-quarter, highlighting the performance resilience of the industry leader [1][4]. - The total GTV (Gross Transaction Value) for Q2 2024 reached 839 billion yuan, representing a year-on-year increase of 7% and a quarter-on-quarter increase of 33% [1][4]. - The adjusted net profit for Q2 2024 was 27 billion yuan, marking a historical second-high, with a year-on-year increase of 13% and a quarter-on-quarter increase of 93% [1][4]. - The company has slightly lowered its profit forecast for 2024-2025, expecting adjusted net profits of 9 billion yuan and 9.2 billion yuan respectively, with corresponding EPS of 2.46 yuan and 2.51 yuan [1][38]. Summary by Sections Revenue and Profit Improvement - In Q2 2024, the company achieved a total GTV of 8390 billion yuan, with a year-on-year growth of 7% and a quarter-on-quarter growth of 33%. Revenue reached 234 billion yuan, up 20% year-on-year and 43% quarter-on-quarter [1][4]. - The adjusted net profit for Q2 2024 was 27 billion yuan, a historical second-high, with a year-on-year increase of 13% and a quarter-on-quarter increase of 93% [1][4]. Business Segment Performance - The existing housing business benefited from positive changes in real estate policies, with a GTV of 5707 billion yuan in Q2 2024, up 25% year-on-year and 26% quarter-on-quarter [1][15]. - The new housing business saw a significant narrowing of revenue decline, with a GTV of 2353 billion yuan, down 20% year-on-year but up 55% quarter-on-quarter [1][23]. - The new track business maintained good growth momentum, with home decoration and furniture business revenue increasing by 54% year-on-year and 68% quarter-on-quarter [1][27]. Financial Forecasts - The company expects adjusted net profits of 90 billion yuan and 92 billion yuan for 2024 and 2025 respectively, with corresponding PE ratios of 14.1 and 13.8 times [1][38]. - The revenue forecast for 2024 is set at 88.239 billion yuan, reflecting a growth of 13.5% compared to 2023 [2][39].

Core Viewpoint - KE Holdings (Beike) has demonstrated resilience in its business model despite the ongoing slump in China's real estate market, maintaining a "buy" rating due to significant upside potential at current valuations [2][9]. Group 1: Q2 2024 Financial Results - Gross transaction value (GTV) increased by 7.5% year-over-year [3]. - Net revenues rose by 19.9% year-over-year [3]. - Adjusted operating margin improved to 12.0% in Q2 2024 from 11.0% in Q2 2023 [3]. - Adjusted net income increased by 13.1% year-over-year [3]. Group 2: Revenue Breakdown - Net revenues from home renovation and furnishing surged by 53.9% to RMB4.0 billion ($0.6 billion), contributing 17.2% to total revenue, up from 13.3% in Q2 2023 [4]. - Net revenues from home rental services skyrocketed by 167.1% to RMB3.2 billion ($0.4 billion), representing 13.7% of net revenue, compared to 6.2% in Q2 2023 [4]. - Existing home transaction services saw a 14.3% increase in net revenues, driven by a 25% growth in GTV [5]. - New home transaction services experienced an 8.8% decline in net revenues due to a 20% drop in GTV, although this decline was less severe than the overall market's 21.5% decrease [5]. Group 3: Market Share and Competitive Advantage - BEKE's outperformance in the market is attributed to four key factors: special incentives for agents, expanded coverage of core state-owned developers, technology tools for identifying potential buyers, and an increase in the number of agents on its platform [5]. - The year-over-year sales decline in Q2 narrowed month-by-month, indicating a potential stabilization in the real estate market [5]. Group 4: Financial Health and Share Repurchase - BEKE generated RMB4.8 billion ($0.66 billion) in operating cash flow and held RMB59.7 billion ($8.2 billion) in cash and equivalents [6]. - The company announced an increase in its share repurchase program from $2 billion to $3 billion, reflecting confidence in its financial position [6]. Group 5: Financial Projections and Valuation - Projections indicate a continued decline in new home sales over the next two years, while existing home sales are expected to rebound [7]. - BEKE's margins have been revised upward based on better-than-expected Q2 results [7]. - A valuation of 14 times P/E multiple is applied, representing a 60% discount to the sector median P/E multiple due to perceived risks [7]. Group 6: Conclusion - BEKE has increased its market share during a challenging period, with signs of stabilization in new home sales and growth in existing home sales [9]. - The company's new business initiatives are showing strong growth momentum, suggesting more than 50% upside potential from current prices [9].

业绩简评 2024 年 8 月 12 日，公司发布 2024 年二季度及中期业绩：24Q2 实 现营收 233.7 亿元，同比+19.9%；经调整净利润 26.9 亿元，同比 +13.9%。24H1 实现营收 397.5 亿元，同比-0.04%；经调整净利润 40.9 亿元，同比-31.1%。 经营分析 今年二季度业绩大幅改善。24Q2 公司营收同比+19.9%，环比 +42.7%，主要受益于存量房、家装家居、房屋租赁业务均取得增 长。同时毛利同比提升 22%至 65 亿元，毛利率同比提升 0.5pct 至 27.9%，主要由于：①家装家居及房屋租赁的运营效率提升，贡 献利润率提高；②门店成本占比降低。 二季度新房业务跑赢大市，存量房业务交易复苏。24Q2 公司新房 GTV 为 2353 亿元，同比-20.2%，降幅小于同期百强房企-35%的全 口径销售额；存量房 GTV 为 5707 亿元，同比+25.0%。公司新房业 务收入 79 亿元，同比-8.8%，新房收入降幅明显小于 GTV 降幅， 主因货币化率提升；存量房业务收入 73 亿元，同比+14.3%。 家装家居及房屋租赁业务快速成长。24Q2 公司房屋 ...

Exhibit 99.3 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. KE Holdings Inc. 貝殼控股有限公司 (A company controlled through weighted voting rights and incorporated in the Cayman Islands with limited ...

Target Price Change 13 August 2024 BUY 75% side Target price: US$24.62 Prior TP: US$22.03 BEKE US Price: US$14.03 TP basis: EV/EBITDA Sector rating: - Forecast Revisions (%) Year ended 31 Dec 24E 25E 26E Revenue 6.8 8.5 9.4 Adjusted EPS 10.7 11.5 12.1 Source: BOCI Research estimates Trading Summary US$ Turnover (US$ m) 14/08/23 14/09/23 14/10/23 14/11/23 14/12/2314/01/2414/02/2414/03/2414/04/2414/05/2414/06/2414/07/24 12.0 13.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0 21.0 0 100 200 300 400 500 600 700 800 900 Tu ...

Investment Rating - The report assigns a "Buy" rating for Ke Holdings with a target price of $21.50, slightly adjusted from the previous target of $22.00, reflecting a potential upside of 53.2% from the current price of $14.03 [2]. Core Insights - Ke Holdings reported a 20% year-over-year revenue growth in Q2, reaching RMB 23.4 billion, exceeding both the forecast and consensus estimates by 9% [2]. - Non-GAAP net income for the quarter was RMB 2.7 billion, surpassing expectations by 48%, attributed to revenue growth and optimized operating expenses [2]. - The company is expected to maintain its market share growth in core business segments due to strong industry demand and an efficient agency network [2]. Summary by Sections Financial Performance - Q2 revenue reached RMB 23.4 billion, a 20% increase year-over-year, driven by new home transactions (NHT) and existing home transactions (EHT) [2]. - Non-GAAP net income was RMB 2.7 billion, exceeding expectations by 48% [2]. - The company anticipates a revenue growth of 44% year-over-year in the home renovation and furniture business for 2024 [2]. Market Share and Business Outlook - Ke Holdings experienced significant market share growth in both EHT and NHT segments, with EHT online registrations increasing by 16% year-over-year in major cities [2]. - The company’s NHT gross transaction value (GTV) declined by 20% year-over-year, while the overall industry saw a 35% decline, indicating strong competitive positioning [2]. - Management is shifting focus from rapid scale expansion to profit margin improvement in the home renovation segment, with profit margins increasing to 31% in Q2 2024 [2]. Shareholder Returns - The management has repurchased shares worth $480 million, representing 2.75% of shares outstanding as of the end of 2023, and has expanded the buyback program to $3 billion [2]. - The company aims to maintain a shareholder return target of 6-7% annually through buybacks and dividends [2]. Real Estate Market Trends - The report notes a slowdown in sales momentum during the typical summer sales lull, with new home sales in July and August showing a month-over-month decline of 24% and 19%, respectively [2]. - Leading indicators suggest a narrowing decline in new home sales, with expectations for increased project launches in September and October [4].

13 Aug 2024 CMB International Global Markets | Equity Research | Company Update Ke Holdings (BEKE US) Solid market share gains amid uncertain environment Beike reported (12 Aug) 2Q24 results: revenue increased 20% YoY to RMB23.4bn, and was 9% ahead of both our forecast and Bloomberg consensus estimates, thanks to a beat on GTV of both new home transactions (NHT) and existing home transactions (EHT), and stronger-than-expected expansion of NHT aided by strong industry demand. Non-GAAP net income was RMB2.7bn ...

Financial Data and Key Metrics - Total GTV reached RMB839 billion, up 7.5% YoY [20] - Net revenue was RMB23.4 billion, representing a YoY increase of 19.9% [20] - Gross margin improved by 0.5 percentage points YoY to 27.9% [20] - GAAP net income reached RMB1.9 billion, rising by 46.2% YoY [20] - Non-GAAP net income grew by 13.9% YoY to RMB2.69 billion [20] Business Line Data and Key Metrics - Revenue from existing home transactions reached RMB7.3 billion, up 14.3% YoY [21] - GTV for existing home transactions was RMB570.7 billion, increasing 25% YoY [21] - New home GTV reached RMB235.3 billion, growing by 28.2% YoY [22] - Revenue from home renovation and furnishing business grew by 53.9% YoY to RMB4 billion [24] - Home rental services revenue reached RMB3.2 billion, up 167.1% YoY [25] Market Data and Key Metrics - Existing home transactions on the platform grew by 40% YoY in Q2 2024 [8] - New home GTV contraction narrowed to 20% YoY in Q2 2024 [8] - Home renovation and furnishings business revenue grew close to 60% YoY in H1 2024 [10] - Home rental services revenue grew by 177% YoY in H1 2024 [10] Company Strategy and Industry Competition - The company is transforming into a technology-powered, one-stop residential services platform model [6] - Focus on community-based business to leverage in-depth community knowledge and understanding of residents' needs [14] - Expansion of store and agency networks, with a net increase of over 2,400 active stores and 40,000 active agents since the end of 2023 [9] Management Commentary on Operating Environment and Future Outlook - The external macro environment will continue to pose challenges in H2 2024 [16] - The company aims to build capabilities to keep the organization moving forward from one success to the next [16] - The company is committed to cost efficiency under refined operational measures [30] Other Important Information - The company repurchased around $480 million worth of shares, accounting for about 2.7% of the company's total shares outstanding at the end of 2023 [31] - The Board approved an expansion of the existing share repurchase program from $2 billion to $3 billion, extended until August 31, 2025 [32] Q&A Session Question: Changes in the real estate market after supportive policies - The housing market showed steady month-by-month improvement in Q2 2024, with existing home transactions rebounding sharply, especially in first-tier cities [35] - The new home market remains subdued, with year-over-year sales decline narrowing month-by-month [35] Question: Performance of new home business - The new home business outperformed the industry, with GTV reaching RMB235.3 billion, up 55% QoQ [40] - The company expanded cooperation with top-tier developers, doubling the number of strategic collaborations to 25 [40] Question: Growth strategy for home transaction services - The company added 48 new major brands and over 6,500 new stores in H1 2024, with a six-month retention rate of 93% [43] - Lianjia explored innovative store formats, including low-cost convenience stores and flagship stores with home-related elements [44] Question: Focus on home renovation and rental business - The home renovation business focused on upgrading digitalized capabilities and optimizing construction delivery [47] - The home rental business improved unit economics by enhancing service quality and leasing efficiency, with revenue reaching RMB3.19 billion, up 167% YoY [48]