BEKE(BEKE) 天风证券·2024-11-18 07:27Investment Rating - The investment rating for the company is "Buy" with a maintained rating for the next six months [4]. Core Views - The company is expected to benefit from favorable tax policies related to housing transactions, which are likely to stimulate both rigid and improved housing demand. The cancellation of the value-added tax on non-standard residential properties is anticipated to significantly reduce transaction costs in high-value cities, thus enhancing market activity [1]. - The company has shown resilience in its performance, with a total transaction value (GTV) of 1.47 trillion yuan in the first half of 2024, despite a year-on-year decrease of 16.2%. However, there is an expectation of recovery in the fourth quarter due to a package of policies that have revitalized the market [2]. - The company's home decoration business is experiencing rapid growth, with a total transaction value reaching 7.6 billion yuan in the first half of 2024, reflecting a year-on-year increase of 24% [3]. Summary by Sections Financial Performance - In the first half of 2024, the company reported a net income of 39.7 billion yuan, which is nearly flat compared to the same period in 2023. However, net profit decreased by 42.38% to 2.3 billion yuan [2]. - The company’s total revenue is projected to grow from 77.8 billion yuan in 2023 to 88.7 billion yuan in 2024, representing a growth rate of 14% [7]. - The non-GAAP adjusted net profit is forecasted to be 85.86 billion yuan for 2024, up from a previous estimate of 73.14 billion yuan [3]. Market Dynamics - The recent tax policy changes are expected to catalyze demand in the first-tier cities, particularly with the potential removal of the standard for ordinary and non-ordinary residential properties [1]. - The company’s stock performance is anticipated to outperform the market, with a target price reflecting a relative return of over 20% [12]. Business Strategy - The company is undergoing an internal restructuring to enhance operational efficiency under its "One Body, Three Wings" strategy, which is expected to support long-term growth in its home decoration segment [3]. - The management changes, including the appointment of a new CEO for the home decoration line, are aimed at optimizing business operations and improving collaboration across different segments [3].