Core Viewpoint - The company, Beike-W (02423), is a leading real estate brokerage with scale effects and management advantages, actively expanding into diversified businesses such as home decoration and rental services. However, the company faces short-term performance pressure due to a continuously stabilizing real estate market, leading to a downward adjustment in profit forecasts for 2025-2027 [1]. Group 1: Financial Performance - In Q3 2025, the company reported total revenue of 23.1 billion yuan, a year-on-year increase of 2.1%, while adjusted net profit was 1.286 billion yuan, a year-on-year decrease of 12.8% [2]. - The total transaction volume remained stable at 736.7 billion yuan, showing no significant year-on-year change. Revenue increased, but profit margins declined, with gross margin at 21.4% (down from 22.7% YoY) and net margin at 3.2% (down from 5.2% YoY) [3]. Group 2: Business Segments - The home decoration and rental services segments achieved profitability at the city level for two consecutive quarters. In Q3, the home decoration business generated revenue of 4.3 billion yuan, contributing a profit margin of 32.0%, an increase of 0.8 percentage points year-on-year. The rental service managed over 660,000 units, generating revenue of 5.73 billion yuan, a year-on-year increase of 45.3%, with a profit margin of 8.7%, up 4.3 percentage points year-on-year [4]. Group 3: AI Integration - The company is leveraging AI to enhance efficiency in rental services, with AI-driven organization and resource management leading to a 13% increase in efficiency for property acquisition. Additionally, AI-enabled management and targeted marketing have resulted in annual savings exceeding 100 million yuan [5]. Group 4: Shareholder Returns - In Q3, the company repurchased approximately 280 million USD worth of shares, a year-on-year increase of 38.3%, marking a two-year high. The total repurchase amount for the year up to Q3 reached about 680 million USD, a year-on-year increase of 15.7%, representing about 3% of the total shares outstanding as of the end of 2024 [6].