Core Viewpoint - The event titled "Protecting Housing Payments, Settling in Zhongshan" marks the launch of Beike's commitment to housing payment security, promising to cover losses if consumers follow the established safety standards [1][3] Group 1: Service Commitment - Beike Zhongshan has introduced a "platform guarantee" service commitment, which ensures that if consumers operate according to the "Housing Payment Security Guarantee Standards" and still incur losses, Beike will initiate a compensation mechanism to cover the relevant payments [1][3] - This commitment upgrades the previous "funds custody" approach, extending the security of real estate funds from the custody phase to the entire transaction cycle [3] Group 2: Operational Procedures - The city manager of Beike Zhongshan, Meng Yungui, emphasized that as long as consumers follow the standard operating procedures, Beike will guarantee the transaction funds [3] - Prior to signing, customers will receive SMS reminders not to make any unauthorized payments such as deposits or intention fees; transaction funds during signing will be processed through a custody payment system [3] - After signing, an official follow-up group will be established for each transaction, ensuring timely feedback once payments are completed [3] Group 3: Market Impact - The platform guarantee concept introduced by Beike is expected to bring new development to the Zhongshan real estate market, enhancing confidence in transaction safety for both parties involved, as well as for the housing fund center and banks [3]

Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the **China Real Estate** sector, highlighting the current market dynamics and sentiment shifts within the industry [2][6]. Core Insights and Arguments 1. **Market Sentiment**: The property market is experiencing softened sentiment, particularly in the high-end housing segment, indicating potential instability despite previous recovery efforts [2][6]. 2. **Government Policy Impact**: The effectiveness of government policies aimed at improving living standards and housing demand is questioned, suggesting that these measures may not be sufficient to stabilize the new home market [2][6]. 3. **Investor Outlook**: Investors are advised to remain vigilant for potential supportive housing market policies that could act as catalysts for stock performance, especially during periods of low policy expectations [2][6]. 4. **Earnings Visibility**: Companies such as CRL, C&D, and Seazen are highlighted as key picks due to their strong fundamentals and higher earnings visibility compared to peers [3][6]. 5. **Home Price Trends**: Recent data indicates a decline in home prices in tier-1 cities like Beijing and Shanghai, which may improve affordability and rental yields, potentially leading to market stabilization [7][6]. 6. **Project Launch Strategies**: Developers are delaying project launches due to subdued sales momentum, with selective price adjustments expected to facilitate sales and capital recycling [7][6]. 7. **Regional Resilience**: Low-tier cities, particularly tier-3 cities in Fujian Province, are showing greater resilience compared to top-tier cities, emphasizing the importance of product positioning [7][6]. 8. **Market Recovery Expectations**: Beike has indicated a potential housing market turnaround by the end of 2026 or early 2027, with a projected normalized Gross Transaction Value (GTV) of RMB 15 trillion [7][6]. Additional Important Points 1. **Sell-Through Rates**: The sell-through rates of key projects launched by various developers are provided, indicating varying performance levels across different companies [15][16]. 2. **Valuation Metrics**: The report includes valuation metrics for several property developers, with target prices and upside potential highlighted for CR Land, C&D International, and Seazen [27][27]. 3. **Risks Identified**: Key risks to the outlook include the inability to maintain sales momentum, lower-than-expected margins, and uncertainties related to macroeconomic and property-specific policies [27][27]. This summary encapsulates the essential insights and data points discussed during the conference call, providing a comprehensive overview of the current state and future outlook of the China Real Estate sector.

Core Insights - The company, Beike Holdings Limited, reported a significant decline in profits for Q3, with earnings dropping 36.1% to 747 million yuan despite a slight revenue increase of 2.1% to 23.1 billion yuan [4][2]. - The company has spent 675 million USD on share buybacks this year, totaling 2.3 billion USD since September 2022, representing about 11.5% of the total shares before the buyback [7][6]. Financial Performance - In 2024, Beike's revenue is projected to rise by 20.2% to 93.5 billion yuan, but profits are expected to fall by 31% to 4.078 billion yuan [2]. - For the first half of the year, revenue increased by 24% to 49.3 billion yuan, while profits decreased by 7% to 2.162 billion yuan [2]. - The Q3 performance showed a total transaction volume of existing homes reaching 505.6 billion yuan, up 5.8% year-on-year, but revenue from this segment fell by 3.6% to 6 billion yuan [4][5]. Market Challenges - The decline in profits is attributed to a challenging real estate market, affecting the company's primary revenue source from intermediary services [4][5]. - The company has implemented a new strategy called "one body and three wings," focusing on real estate brokerage as the core, with additional segments in renovation, leasing, and property development [5]. Strategic Initiatives - Beike's renovation business reported stable revenue of 4.3 billion yuan in Q3, but future growth is limited due to a decrease in new home transactions [6]. - The property development segment, managed by the brand "Beihome," utilizes a C2M model but faces high capital investment and long timelines for returns, especially in a weak real estate market [6]. Stock Performance and Outlook - Despite a strong performance in the Hong Kong stock market, Beike's stock has dropped 37% from its peak over the past year, trading between 30 to 50 HKD [6][7]. - Analysts have lowered their earnings forecasts for Beike for 2025 to 2027 by 24%, 29%, and 27%, respectively, and downgraded the rating from "buy" to "hold" [7]. - The current price-to-earnings ratio stands at 34 times, indicating that the stock is not cheap, and significant price breakthroughs are unlikely without a recovery in the real estate market [8].

Core Viewpoint - The company is actively developing non-housing businesses to mitigate cyclical risks and is shifting to a defensive posture by enhancing cost efficiency and increasing shareholder returns to improve investment value [1] Financial Performance - In Q3 2025, the company's net profit was 747 million yuan, a year-on-year decrease of 36.1%, while adjusted net profit was 1.286 billion yuan, down 27.8% [2] - The total transaction volume for the company in Q3 2025 was 736.7 billion yuan, remaining stable year-on-year, with net revenue of 23.1 billion yuan, an increase of 2.1% [1] - The company's adjusted net profit projections for 2025-2027 are 5.719 billion, 6.244 billion, and 6.995 billion yuan respectively, with corresponding net profits of 3.832 billion, 4.153 billion, and 4.773 billion yuan [1] Business Segments - In the real estate transaction service sector, the company is piloting a tenant-separation mechanism in Shanghai to enhance marketing and sales capabilities for sellers [2] - The housing rental service is integrating AI with operations, contributing over 100 million yuan in profit in Q3 2025, with both home decoration and rental services achieving profitability at the city level [2] - The company's existing housing business net revenue was 6 billion yuan in Q3 2025, a decrease of 3.6%, while the total transaction volume for existing housing was 505.6 billion yuan, an increase of 5.8% [2] New Housing Business - The new housing business net revenue was 6.6 billion yuan in Q3 2025, down 14.1%, with total transaction volume at 196.3 billion yuan, a decrease of 13.7% [3] - The GTV for the new housing business under the Beilian model accounted for 81.7% in Q3 2025, showing a slight increase from the previous quarter [3] Share Buyback - The company has actively implemented a share buyback plan, with a quarterly buyback amount reaching 281 million USD, the highest in nearly two years [3] - As of the end of Q3 2025, the total amount spent on buybacks this year was approximately 675 million USD, a year-on-year increase of 15.7%, representing about 3% of the total share capital as of the end of 2024 [3]

Core Viewpoint - The second-hand housing market is the most accurate reflection of the real estate market's current state, and this perspective will continue to gain significance as new homes eventually become second-hand properties [1][3]. Group 1: Company Performance - Beike's Q3 financial report revealed a net profit of 747 million yuan, a year-on-year decline of 36.1%, and an adjusted net profit of 1.286 billion yuan, down 27.8% year-on-year [3]. - The total transaction volume for Beike's second-hand housing business reached 505.6 billion yuan, a year-on-year increase of 5.8%, but revenue decreased by 3.6% to approximately 6 billion yuan [3]. - Beike's new housing business saw a transaction volume of 196.3 billion yuan, a year-on-year decline of 13.7%, with revenue dropping 14.1% to 6.6 billion yuan [3][4]. Group 2: Market Trends - The second-hand housing market is experiencing a price drop, leading to increased transaction volumes as buyers find better value, although revenue is declining due to a higher proportion of transactions coming from franchise stores [6][8]. - The overall real estate market is shrinking, impacting Beike's profitability despite its market dominance [7]. - The shift towards "fourth-generation residential" projects is reducing developers' reliance on intermediaries, leading to lower commission rates for agents [8]. Group 3: Future Outlook - Beike's non-real estate business, including home decoration and rental services, is performing well, with home decoration revenue at 4.3 billion yuan and rental income growing by 45.3% to 5.7 billion yuan [8][9]. - The real estate industry is transitioning from a focus on property transactions to comprehensive residential services, indicating that Beike may expand its offerings to include furniture and appliances [10]. - Future home-buying decisions will increasingly prioritize living quality, rental yield, and property management, with older neighborhoods likely facing further depreciation [11][12].

Investment Rating - The report assigns an "Outperform" rating to the company, projecting net profits of RMB 5.72 billion, 6.24 billion, and 6.99 billion for 2025-2027, with a 2025 PE valuation of 38x, equating to a fair value of RMB 60.83 or HKD 66.85 per share [4][16]. Core Insights - The company is actively developing non-housing businesses to mitigate cyclical risks and is focusing on cost reduction and efficiency improvements while increasing shareholder returns to enhance investment value [1]. - In Q3 2025, the total transaction volume was RMB 736.7 billion, stable year-on-year, with net income of RMB 23.1 billion, up 2.1% year-on-year. However, net profit decreased by 36.1% year-on-year to RMB 747 million [17]. - The existing home business showed a net income of RMB 6 billion, down 3.6% year-on-year, while the new home business net income was RMB 6.6 billion, down 14.1% year-on-year [18]. - The company has implemented a significant buyback plan, with Q3 2025 buybacks reaching USD 281 million, marking a two-year high [19]. Financial Summary - Total revenue for 2023 is projected at RMB 77.78 billion, with a growth rate of 28.2%. The net profit for 2023 is expected to be RMB 5.88 billion, reflecting a substantial increase of 524.5% [3]. - The company’s gross profit margin is expected to decline slightly from 24.55% in 2024 to 22.23% in 2027, indicating a trend of increasing costs relative to revenue [10]. - The company’s total assets are projected to grow from RMB 133.15 billion in 2024 to RMB 156.70 billion in 2027, while total liabilities are expected to increase from RMB 61.70 billion to RMB 84.51 billion over the same period [5]. Business Performance - The company’s existing home transaction volume increased by 5.8% year-on-year to RMB 505.6 billion in Q3 2025, while the new home transaction volume decreased by 13.7% year-on-year to RMB 196.3 billion [18]. - The rental services segment has shown strong growth, contributing over RMB 100 million in profit in Q3 2025, with a year-on-year growth of 45.3% [17][7]. - The company’s home furnishing and rental services achieved profitability at the city level, with profit contributions to gross profit reaching a historical high [17].

Core Points - The "Beike Cup" 2025 Vocational Skills Invitation Competition was successfully held in Shanghai, aiming to enhance the professional skills of home decoration service providers and support the construction of quality housing in China [1][4][26] - The event was organized by the China Timber Industry Association and involved various stakeholders, including educational institutions and industry representatives, to promote collaboration between education and industry [3][6][15] Group 1: Event Overview - The competition serves as a platform to select and motivate high-quality home decoration service providers, directly impacting consumer experience and industry quality upgrades [1][4] - The event featured participation from various industry leaders and educational institutions, highlighting the importance of collaboration in vocational training [3][6] Group 2: Industry Insights - The president of the China Timber Industry Association emphasized that high-standard vocational competitions can enhance practitioners' skills and service awareness, contributing to the core competitiveness of enterprises [4] - The vice president of Shanghai Sci-Tech Vocational College noted that the event aligns with national strategies for deepening industry-education integration and promoting high-quality vocational education [6] Group 3: Skills Development - The Secretary-General of the China Timber Industry Association's Home Decoration Branch pointed out the importance of skills in the current information age, advocating for competitions to improve craftsmanship and address industry shortcomings [9] - The event included practical competitions in customized furniture installation, tile laying, and painting, with judges evaluating participants on various criteria [22][24] Group 4: Future Directions - Beike is committed to enhancing the quality of service delivery through a structured talent cultivation mechanism, which includes skill training and quality control [26] - The company plans to continue investing in vocational skills training and technological empowerment to drive the industry towards healthier and higher-quality development [26]

Core Viewpoint - Beike-W (02423.HK) announced a share buyback plan, intending to repurchase 530,800 shares at a cost of $3 million on November 14, 2025 [1] Group 1 - The company plans to execute the buyback to enhance shareholder value [1] - The total number of shares to be repurchased is 530,800 [1] - The total expenditure for the buyback is set at $3 million [1]

Core Points - The company Beike-W (02423) announced a share buyback plan, intending to repurchase 530,800 shares at a total cost of $3 million [1] - The buyback price is set between $5.58 and $5.72 per share [1] Summary by Category Company Actions - Beike-W plans to execute a share buyback on November 14, 2025, with a total expenditure of $3 million [1] - The number of shares targeted for repurchase is 530,800 [1] - The specified price range for the buyback is between $5.58 and $5.72 per share [1]

Group 1 - The company Beike-W (02423) announced a share repurchase plan, committing to buy back 530,800 shares at a total cost of $3 million [1] - The repurchase price is set between $5.58 and $5.72 per share [1]