Core Viewpoint - The company maintains a "buy" rating due to its increasing market share in the brokerage business, stable industry position, and advantageous valuation compared to smaller competitors [1] Financial Performance - In Q3 2025, the company reported a total transaction value (GTV) of 736.7 billion yuan, unchanged year-on-year; net revenue was 23.05 billion yuan, up 2.1% year-on-year; and adjusted net profit was 1.29 billion yuan, down 27.8% year-on-year [2] - The company's gross profit margin for Q3 2025 was 21.4%, a decrease of 1.3 percentage points year-on-year; the combined sales, management, and R&D expense ratio was 18.4%, down 1.1 percentage points year-on-year [2] Market Segmentation - The company experienced a 5.8% year-on-year increase in second-hand housing GTV, totaling 505.6 billion yuan, while new housing GTV decreased by 13.7% to 196.3 billion yuan [3] - The company’s home decoration and rental businesses saw significant revenue growth, with home decoration revenue at 4.3 billion yuan (up 2.1% year-on-year) and rental revenue at 5.73 billion yuan (up 45.3% year-on-year) [3] Operational Insights - The number of active stores reached 59,000, an increase of 26% year-on-year, and the number of active brokers was 472,000, up 11.4% year-on-year [3] - The company’s rental business achieved a profit contribution of 500 million yuan, a substantial increase of 185.9% year-on-year, indicating strong growth in the rental segment [3] Future Outlook - The company faces significant GTV pressure in Q4 2025 due to declining transaction activity in both the primary and secondary markets, leading to a downward revision of revenue and profit forecasts for 2025-2027 [4] - The adjusted net profit forecasts for 2025, 2026, and 2027 are 3.6 billion yuan, 5.4 billion yuan, and 6.4 billion yuan, respectively, reflecting a decrease from previous estimates [4]