Core Viewpoint - KE Holdings Inc. ("Beike") reported its financial results for the fourth quarter and fiscal year 2024, highlighting a significant increase in net revenues and gross transaction value (GTV), despite a decrease in net income and adjusted net income year-over-year. The company emphasizes its commitment to technology-driven and human-centric services in the evolving real estate market in China [1][4][23]. Financial Highlights for Q4 and FY 2024 - In Q4 2024, net income was RMB577 million (US$79 million), a decrease of 13.9% year-over-year, while adjusted net income was RMB1,344 million (US$184 million), down 21.6% year-over-year [3][17]. - The total GTV for 2024 was RMB3,349.4 billion (US$458.9 billion), an increase of 6.6% year-over-year, with net revenues reaching RMB93.5 billion (US$12.8 billion), a 20.2% increase year-over-year [5][23]. - The number of active stores on the platform grew to nearly 49,700, an 18.3% increase year-over-year, and the number of active agents surpassed 445,000, a 12.1% increase year-over-year [4][5]. Revenue Breakdown - GTV of existing home transactions in 2024 was RMB2,246.5 billion (US$307.8 billion), up 10.8% year-over-year, while GTV of new home transactions decreased by 3.3% to RMB970.0 billion (US$132.9 billion) [5][25]. - Net revenues from home renovation and furnishing services increased by 36.1% to RMB14.8 billion (US$2.0 billion) in 2024, and net revenues from home rental services surged by 135.0% to RMB14.3 billion (US$2.0 billion) [23][25]. Cost and Profitability - Total cost of revenues increased by 25.8% to RMB70.5 billion (US$9.7 billion) in 2024, with gross profit rising by 5.6% to RMB22.9 billion (US$3.1 billion) [24][26]. - The gross margin for 2024 was 24.6%, down from 27.9% in 2023, primarily due to increased fixed compensation costs [26]. Shareholder Returns - The company repurchased shares totaling approximately US$716 million in 2024, representing about 3.9% of total issued shares at the end of 2023 [8]. - A final cash dividend of US$0.12 per ordinary share, or US$0.36 per ADS, was declared, amounting to approximately US$0.4 billion [37][38]. Strategic Outlook - The company aims to enhance its technology-driven and human-centric approach, leveraging AI to better understand customer needs and improve service efficiency [4][6].

Core Viewpoint - KE Holdings Inc. has announced the inclusion of its Class A ordinary shares in the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect programs, effective March 10, 2025, which is expected to enhance its investor base and trading liquidity [1][2]. Group 1: Company Overview - KE Holdings Inc. is a leading integrated online and offline platform for housing transactions and services in China, operating under the brand Lianjia, which has over 23 years of experience in the real estate brokerage sector [4]. - The company aims to reinvent housing transactions by building infrastructure and standards that facilitate efficient navigation and completion of services related to home sales, rentals, renovations, and furnishings [4]. Group 2: Market Access and Investor Impact - The inclusion in the stock connect programs allows eligible investors in Mainland China to directly trade the company's Class A ordinary shares, which is anticipated to diversify the investor base and improve trading liquidity [2][3]. - This move enables the company to share its growth and future success with a broader range of investors in Mainland China through the financial market [2].

Core Viewpoint - KE Holdings Inc. will report its unaudited financial results for Q4 and fiscal year 2024 on March 18, 2025, before the U.S. market opens [1] Company Overview - KE Holdings Inc. is a leading integrated online and offline platform for housing transactions and services in China, operating under the brand Lianjia [3] - The company has over 23 years of experience since Lianjia's inception in 2001, which supports its infrastructure and standards for housing transactions [3] Earnings Conference Call - The management will hold an earnings conference call on March 18, 2025, at 8:00 A.M. Eastern Time [2] - Participants can register online to join the call, and a replay will be available until March 25, 2025 [2]

BEIJING, Feb. 28, 2025 (GLOBE NEWSWIRE) -- KE Holdings Inc. ("Beike" or the "Company") (NYSE:BEKE), a leading integrated online and offline platform for housing transactions and services, is pleased to announce today a significant upgrade in its Environmental, Social and Governance (ESG) rating by Morgan Stanley Capital International ("MSCI") from "BBB" to "A." This achievement marks the second consecutive year of improvement for Beike, reflecting its steadfast commitment to excellence in ESG practices with ...

Core Insights - KE Holdings Inc. ("Beike") has achieved a significant upgrade in its ESG rating from "BBB" to "A" by MSCI, marking the second consecutive year of improvement [1][2] - The company scored 7.2 in the ESG social category, significantly higher than the global industry average of 4.3, due to its focus on human capital development and data security [2][3] - Beike is committed to creating long-term sustainable value in China's residential services industry through infrastructure transformation and technology-driven innovation [4][5] ESG Performance - Beike's ESG environmental category score increased by 1.8 points from the previous year, reflecting its initiatives in eco-friendly practices, such as the "Lianjia Green Store Standard" [2] - The company's efforts in vocational training and structured career paths for service providers have contributed to its strong performance in the social category [2] Company Overview - KE Holdings Inc. operates as an integrated online and offline platform for housing transactions and services, including home sales, rentals, and renovations [5] - The company is known for its leading real estate brokerage brand, Lianjia, which has over 23 years of operational experience [5]

Group 1 - The core viewpoint is a bullish outlook on KE Holdings Inc. (NYSE: BEKE) as signs of stabilization emerge in China's property market [1] - The analysis acknowledges that while the housing market in China is showing some stabilization, it is expected to remain challenging due to primary market conditions [1] Group 2 - Astrada Advisors specializes in delivering actionable recommendations that enhance portfolio performance and uncover alpha opportunities, backed by a strong track record in investment research [1] - The firm has expertise across technology, media, internet, and consumer sectors in North America and Asia, allowing it to identify high-potential investments and navigate complex industries [1] - Astrada Advisors integrates rigorous fundamental analysis with data-driven insights to provide a nuanced understanding of key trends, growth drivers, and competitive landscapes [1]

Company Overview - KE Holdings Inc. (BEKE) shares increased by 5.4% to close at $20.52, with notable trading volume compared to typical sessions, and a total gain of 17.5% over the past four weeks [1][2] Growth Drivers - The company is benefiting from the recovery of China's real estate market, increased transaction volumes, strategic expansion of its agent network, technology-driven efficiencies, supportive government policies, and improved corporate governance [2] Earnings Expectations - BEKE is projected to report quarterly earnings of $0.31 per share, reflecting a year-over-year increase of 55%. Revenue is expected to reach $4.01 billion, which is a 41% increase from the same quarter last year [2] Stock Performance Insights - Trends in earnings estimate revisions are strongly correlated with near-term stock price movements, indicating that the current earnings growth expectations may signal potential strength in the stock [3] Consensus and Market Position - The consensus EPS estimate for BEKE has remained unchanged over the last 30 days, suggesting that the stock's price may not continue to rise without changes in earnings estimates [4] - KE Holdings holds a Zacks Rank of 3 (Hold), indicating a neutral outlook in the market [4]

Investment Rating and Strategy - The analyst gives a hold rating for KE Holdings (NYSE: BEKE) due to the need for more evidence that the current demand improvement trend is sustainable [1] - The analyst seeks growth acceleration supported by improving macroeconomic demand before reconsidering the rating [1] Analyst Background and Approach - The analyst is an individual investor managing personal capital accumulated over the years [1] - The analyst employs a diversified investment approach, including fundamental investing, technical investing, and momentum investing [1] - The analyst uses Seeking Alpha as a platform to track investment ideas and connect with like-minded investors [1] Disclosure and Independence - The analyst has no stock, option, or derivative positions in the mentioned companies and no plans to initiate such positions within the next 72 hours [2] - The article reflects the analyst's personal opinions and is not influenced by compensation or business relationships with the mentioned companies [2]

Investment Rating - The report maintains a "Buy" rating for the company, citing its strong market position and expected growth in adjusted net profit for 2024/2025/2026 [3][6] Core Views - The company benefits from favorable real estate policies, which are expected to drive market recovery and enhance its market share [6] - The company's new home GTV monetization rate reached a historical high in 2024Q3, with a GTV of 227.6 billion yuan, up 18.5% YoY, outperforming the industry [5] - The company's rental service business revenue grew 118% YoY in 2024Q3, driven by the rapid expansion of its "Worry-Free Rent" managed properties [6] - The company has consistently delivered on its shareholder return commitments, with $5.8 billion used for share repurchases in the first three quarters of 2024 [6] Financial Performance - The company's revenue for 2024Q3 was 22.6 billion yuan, up 26.8% YoY, with a gross margin of 22.7%, down 5.2 percentage points QoQ due to increased fixed costs [7] - Adjusted net profit for 2024Q3 was 1.78 billion yuan, down 17.5% YoY, but exceeded Bloomberg consensus expectations [7] - The company's existing home GTV in 2024Q3 was 477.8 billion yuan, up 8.8% YoY, with expectations of significant YoY and QoQ growth in Q4 due to policy tailwinds [7] Business Segments - The home decoration and furnishing segment saw a GTV of 4.1 billion yuan in 2024Q3, up 24.6% YoY, with a contribution margin increase of 2.1 percentage points to 31% [9] - The rental service business contributed a profit margin of 4.4% in 2024Q3, down 1.4 percentage points QoQ due to seasonal cost increases [6] Market Data - The company's closing price was $19.98 per ADS, with a total market capitalization of $24.1 billion and total assets of 1,227.96 billion yuan as of November 21, 2024 [1] - The company's net assets were 707.75 billion yuan, with a net asset per share of 19.5 yuan [1]

Financial Performance - Gross transaction value (GTV) reached RMB736.8 billion (US$105.0 billion), a 12.5% year-over-year increase[4] - Net revenues increased by 26.8% to RMB22.6 billion (US$3.2 billion) compared to RMB17.8 billion in the same period of 2023[5][15] - Net income was RMB1,168 million (US$167 million), with adjusted net income at RMB1,782 million (US$254 million)[6] - Total net revenues for the three months ended September 30, 2024, increased to RMB 22,584,647, representing a 27.5% growth compared to RMB 17,810,705 for the same period in 2023[68] - Net income attributable to KE Holdings Inc. for the three months ended September 30, 2024, was RMB 1,171,073, compared to RMB 1,158,042 for the same period in 2023, reflecting a 1.1% increase[70] - The company reported a total comprehensive income of RMB 1,049,224 for the three months ended September 30, 2024, up from RMB 927,825 in the same quarter of 2023[70] - The net income for the nine months ended September 30, 2024, was RMB 3,500,932, representing a decrease of 32.9% from RMB 5,219,541 in the same period of 2023[75] Revenue Breakdown - Net revenues from home renovation and furnishing grew by 32.6% to RMB4.2 billion (US$0.6 billion) year-over-year[21] - Net revenues from home rental services surged by 118.4% to RMB3.9 billion (US$0.6 billion) compared to RMB1.8 billion in the same period of 2023[22] - Contribution from new home transaction services net revenues increased to RMB 7,726,316 for the three months ended September 30, 2024, compared to RMB 5,901,966 in the same period of 2023, representing a growth of approximately 30.9%[84] - Home renovation and furnishing net revenues for the nine months ended September 30, 2024, reached RMB 10,662,113, up from RMB 7,209,569 in the same period of 2023, indicating a growth of about 48.5%[84] - Home rental services net revenues for the three months ended September 30, 2024, were RMB 3,941,234, significantly higher than RMB 1,804,374 for the same period in 2023, reflecting an increase of approximately 118.5%[84] - Total contribution from existing home transaction services for the three months ended September 30, 2024, was RMB 2,549,227, down from RMB 3,069,848 in the same period of 2023, indicating a decline of approximately 17%[84] Expenses and Costs - Total cost of revenues increased by 35.0% to RMB17.4 billion (US$2.5 billion) in Q3 2024[23] - Gross profit increased by 5.2% to RMB5.1 billion (US$0.7 billion) in Q3 2024, with a gross margin of 22.7%, down from 27.4% in Q3 2023[30] - Total operating expenses rose by 11.0% to RMB4.4 billion (US$0.6 billion) in Q3 2024, with sales and marketing expenses increasing by 18.6% to RMB1.9 billion (US$0.3 billion)[32][33] - Research and development expenses increased by 21.5% to RMB573 million (US$82 million) in Q3 2024, driven by higher headcount and technical service costs[34] - Operating expenses for the three months ended September 30, 2024, totaled RMB 4,407,769, an increase from RMB 3,969,722 in the same period last year[68] Cash and Assets - As of September 30, 2024, the combined balance of cash, cash equivalents, restricted cash, and short-term investments was RMB59.5 billion (US$8.5 billion)[45] - Cash and cash equivalents were reported at RMB 9,576,948 as of September 30, 2024, a decrease from RMB 19,634,716 as of December 31, 2023[64] - Short-term investments increased significantly to RMB 43,654,035 as of September 30, 2024, up from RMB 34,257,958 as of December 31, 2023, representing a growth of approximately 27%[64] - The company reported a net decrease in cash and cash equivalents of RMB 1,706,229 for the three months ended September 30, 2024[82] Shareholder Information - The company allocated approximately US$200 million to share repurchases in Q3 2024[14] - The company has repurchased approximately 102.2 million ADSs (representing approximately 306.5 million Class A ordinary shares) for a total consideration of approximately US$1,493.4 million under its share repurchase program[46] - Basic and diluted net income per ADS attributable to KE Holdings Inc.'s ordinary shareholders were RMB1.04 (US$0.15) and RMB1.00 (US$0.14) in Q3 2024, compared to RMB0.99 and RMB0.97 in Q3 2023[41] - The weighted average number of ADS used in computing net income per ADS, diluted, for the three months ended September 30, 2024, was 1,167,050,588[72] Liabilities and Equity - Current liabilities increased to RMB 43,147,206 as of September 30, 2024, compared to RMB 39,523,983 as of December 31, 2023, reflecting a growth of approximately 6.5%[65] - Total shareholders' equity decreased to RMB 70,893,663 as of September 30, 2024, down from RMB 72,201,105 as of December 31, 2023, indicating a decline of about 1.8%[66] - Total non-current liabilities increased to RMB 8,754,843 as of September 30, 2024, from RMB 8,606,843 as of December 31, 2023, marking an increase of approximately 1.7%[65] - The company’s accumulated deficit improved to RMB (2,178,008) as of September 30, 2024, from RMB (5,672,916) as of December 31, 2023, showing a significant reduction in losses[66]