Core Viewpoint - KE Holdings (Beike) has demonstrated resilience in its business model despite the ongoing slump in China's real estate market, maintaining a "buy" rating due to significant upside potential at current valuations [2][9]. Group 1: Q2 2024 Financial Results - Gross transaction value (GTV) increased by 7.5% year-over-year [3]. - Net revenues rose by 19.9% year-over-year [3]. - Adjusted operating margin improved to 12.0% in Q2 2024 from 11.0% in Q2 2023 [3]. - Adjusted net income increased by 13.1% year-over-year [3]. Group 2: Revenue Breakdown - Net revenues from home renovation and furnishing surged by 53.9% to RMB4.0 billion ($0.6 billion), contributing 17.2% to total revenue, up from 13.3% in Q2 2023 [4]. - Net revenues from home rental services skyrocketed by 167.1% to RMB3.2 billion ($0.4 billion), representing 13.7% of net revenue, compared to 6.2% in Q2 2023 [4]. - Existing home transaction services saw a 14.3% increase in net revenues, driven by a 25% growth in GTV [5]. - New home transaction services experienced an 8.8% decline in net revenues due to a 20% drop in GTV, although this decline was less severe than the overall market's 21.5% decrease [5]. Group 3: Market Share and Competitive Advantage - BEKE's outperformance in the market is attributed to four key factors: special incentives for agents, expanded coverage of core state-owned developers, technology tools for identifying potential buyers, and an increase in the number of agents on its platform [5]. - The year-over-year sales decline in Q2 narrowed month-by-month, indicating a potential stabilization in the real estate market [5]. Group 4: Financial Health and Share Repurchase - BEKE generated RMB4.8 billion ($0.66 billion) in operating cash flow and held RMB59.7 billion ($8.2 billion) in cash and equivalents [6]. - The company announced an increase in its share repurchase program from $2 billion to $3 billion, reflecting confidence in its financial position [6]. Group 5: Financial Projections and Valuation - Projections indicate a continued decline in new home sales over the next two years, while existing home sales are expected to rebound [7]. - BEKE's margins have been revised upward based on better-than-expected Q2 results [7]. - A valuation of 14 times P/E multiple is applied, representing a 60% discount to the sector median P/E multiple due to perceived risks [7]. Group 6: Conclusion - BEKE has increased its market share during a challenging period, with signs of stabilization in new home sales and growth in existing home sales [9]. - The company's new business initiatives are showing strong growth momentum, suggesting more than 50% upside potential from current prices [9].

Exhibit 99.3 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. KE Holdings Inc. 貝殼控股有限公司 (A company controlled through weighted voting rights and incorporated in the Cayman Islands with limited ...

Target Price Change 13 August 2024 BUY 75% side Target price: US$24.62 Prior TP: US$22.03 BEKE US Price: US$14.03 TP basis: EV/EBITDA Sector rating: - Forecast Revisions (%) Year ended 31 Dec 24E 25E 26E Revenue 6.8 8.5 9.4 Adjusted EPS 10.7 11.5 12.1 Source: BOCI Research estimates Trading Summary US$ Turnover (US$ m) 14/08/23 14/09/23 14/10/23 14/11/23 14/12/2314/01/2414/02/2414/03/2414/04/2414/05/2414/06/2414/07/24 12.0 13.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0 21.0 0 100 200 300 400 500 600 700 800 900 Tu ...

Investment Rating - The report assigns a "Buy" rating for Ke Holdings with a target price of $21.50, slightly adjusted from the previous target of $22.00, reflecting a potential upside of 53.2% from the current price of $14.03 [2]. Core Insights - Ke Holdings reported a 20% year-over-year revenue growth in Q2, reaching RMB 23.4 billion, exceeding both the forecast and consensus estimates by 9% [2]. - Non-GAAP net income for the quarter was RMB 2.7 billion, surpassing expectations by 48%, attributed to revenue growth and optimized operating expenses [2]. - The company is expected to maintain its market share growth in core business segments due to strong industry demand and an efficient agency network [2]. Summary by Sections Financial Performance - Q2 revenue reached RMB 23.4 billion, a 20% increase year-over-year, driven by new home transactions (NHT) and existing home transactions (EHT) [2]. - Non-GAAP net income was RMB 2.7 billion, exceeding expectations by 48% [2]. - The company anticipates a revenue growth of 44% year-over-year in the home renovation and furniture business for 2024 [2]. Market Share and Business Outlook - Ke Holdings experienced significant market share growth in both EHT and NHT segments, with EHT online registrations increasing by 16% year-over-year in major cities [2]. - The company’s NHT gross transaction value (GTV) declined by 20% year-over-year, while the overall industry saw a 35% decline, indicating strong competitive positioning [2]. - Management is shifting focus from rapid scale expansion to profit margin improvement in the home renovation segment, with profit margins increasing to 31% in Q2 2024 [2]. Shareholder Returns - The management has repurchased shares worth $480 million, representing 2.75% of shares outstanding as of the end of 2023, and has expanded the buyback program to $3 billion [2]. - The company aims to maintain a shareholder return target of 6-7% annually through buybacks and dividends [2]. Real Estate Market Trends - The report notes a slowdown in sales momentum during the typical summer sales lull, with new home sales in July and August showing a month-over-month decline of 24% and 19%, respectively [2]. - Leading indicators suggest a narrowing decline in new home sales, with expectations for increased project launches in September and October [4].

13 Aug 2024 CMB International Global Markets | Equity Research | Company Update Ke Holdings (BEKE US) Solid market share gains amid uncertain environment Beike reported (12 Aug) 2Q24 results: revenue increased 20% YoY to RMB23.4bn, and was 9% ahead of both our forecast and Bloomberg consensus estimates, thanks to a beat on GTV of both new home transactions (NHT) and existing home transactions (EHT), and stronger-than-expected expansion of NHT aided by strong industry demand. Non-GAAP net income was RMB2.7bn ...

Financial Data and Key Metrics - Total GTV reached RMB839 billion, up 7.5% YoY [20] - Net revenue was RMB23.4 billion, representing a YoY increase of 19.9% [20] - Gross margin improved by 0.5 percentage points YoY to 27.9% [20] - GAAP net income reached RMB1.9 billion, rising by 46.2% YoY [20] - Non-GAAP net income grew by 13.9% YoY to RMB2.69 billion [20] Business Line Data and Key Metrics - Revenue from existing home transactions reached RMB7.3 billion, up 14.3% YoY [21] - GTV for existing home transactions was RMB570.7 billion, increasing 25% YoY [21] - New home GTV reached RMB235.3 billion, growing by 28.2% YoY [22] - Revenue from home renovation and furnishing business grew by 53.9% YoY to RMB4 billion [24] - Home rental services revenue reached RMB3.2 billion, up 167.1% YoY [25] Market Data and Key Metrics - Existing home transactions on the platform grew by 40% YoY in Q2 2024 [8] - New home GTV contraction narrowed to 20% YoY in Q2 2024 [8] - Home renovation and furnishings business revenue grew close to 60% YoY in H1 2024 [10] - Home rental services revenue grew by 177% YoY in H1 2024 [10] Company Strategy and Industry Competition - The company is transforming into a technology-powered, one-stop residential services platform model [6] - Focus on community-based business to leverage in-depth community knowledge and understanding of residents' needs [14] - Expansion of store and agency networks, with a net increase of over 2,400 active stores and 40,000 active agents since the end of 2023 [9] Management Commentary on Operating Environment and Future Outlook - The external macro environment will continue to pose challenges in H2 2024 [16] - The company aims to build capabilities to keep the organization moving forward from one success to the next [16] - The company is committed to cost efficiency under refined operational measures [30] Other Important Information - The company repurchased around $480 million worth of shares, accounting for about 2.7% of the company's total shares outstanding at the end of 2023 [31] - The Board approved an expansion of the existing share repurchase program from $2 billion to $3 billion, extended until August 31, 2025 [32] Q&A Session Question: Changes in the real estate market after supportive policies - The housing market showed steady month-by-month improvement in Q2 2024, with existing home transactions rebounding sharply, especially in first-tier cities [35] - The new home market remains subdued, with year-over-year sales decline narrowing month-by-month [35] Question: Performance of new home business - The new home business outperformed the industry, with GTV reaching RMB235.3 billion, up 55% QoQ [40] - The company expanded cooperation with top-tier developers, doubling the number of strategic collaborations to 25 [40] Question: Growth strategy for home transaction services - The company added 48 new major brands and over 6,500 new stores in H1 2024, with a six-month retention rate of 93% [43] - Lianjia explored innovative store formats, including low-cost convenience stores and flagship stores with home-related elements [44] Question: Focus on home renovation and rental business - The home renovation business focused on upgrading digitalized capabilities and optimizing construction delivery [47] - The home rental business improved unit economics by enhancing service quality and leasing efficiency, with revenue reaching RMB3.19 billion, up 167% YoY [48]

Core Viewpoint - KE Holdings Inc. has approved an increase in its share repurchase program from US$2.0 billion to US$3.0 billion and extended it until August 31, 2025, reflecting the company's commitment to returning value to shareholders [2]. Group 1: Share Repurchase Program - The existing share repurchase program was initially established in August 2022 and was upsized in August 2023, allowing the company to purchase up to US$2.0 billion of its Class A ordinary shares and/or American depositary shares (ADSs) until August 31, 2024 [1]. - As of the announcement date, the company has repurchased approximately 95.0 million ADSs, equivalent to about 285.0 million Class A ordinary shares, for a total consideration of approximately US$1,389.8 million [1]. - The board of directors has now approved modifications to increase the repurchase authorization to US$3.0 billion and extend the program until August 31, 2025 [2]. Group 2: Company Overview - KE Holdings Inc. operates as a leading integrated online and offline platform for housing transactions and services in China, focusing on various aspects such as home sales, rentals, renovations, and furnishing [3]. - The company is known for its Lianjia brand, which has over 22 years of operational experience and is a key component of the Beike platform [3].

Core Viewpoint - KE Holdings Inc. reported strong financial results for the second quarter of 2024, with significant growth in net revenues and net income, driven by operational enhancements and market recovery in existing home transactions [1][3][4]. Financial Performance - Gross transaction value (GTV) reached RMB839.0 billion (US$115.5 billion), a 7.5% increase year-over-year, with existing home transactions growing by 25.0% to RMB570.7 billion (US$78.5 billion) [2][8]. - Net revenues increased by 19.9% to RMB23.4 billion (US$3.2 billion) compared to RMB19.5 billion in the same period of 2023 [8][21]. - Net income rose by 46.2% year-over-year to RMB1,900 million (US$262 million), while adjusted net income grew by 13.9% to RMB2,693 million (US$371 million) [5][21]. Business Segments - Revenues from existing home transaction services increased by 14.3% to RMB7.3 billion (US$1.0 billion), supported by a 25.0% rise in GTV [9][11]. - New home transaction services saw a decline of 8.8% in revenues to RMB7.9 billion (US$1.1 billion), with GTV decreasing by 20.2% [11][12]. - Home renovation and furnishing revenues surged by 53.9% to RMB4.0 billion (US$0.6 billion), driven by increased orders and enhanced delivery capabilities [12][13]. - Home rental services revenues increased significantly by 167.1% to RMB3.2 billion (US$0.4 billion) due to a rise in rental units under the Carefree Rent model [12][13]. Operational Metrics - The number of stores increased by 6.9% year-over-year to 45,948, while active stores rose by 8.1% to 44,423 [2][5]. - The number of agents reached 458,690, marking a 5.2% increase, although the number of active agents remained relatively flat [2][5]. - Mobile monthly active users averaged 49.7 million, up from 48.0 million in the same period of 2023 [2][5]. Shareholder Returns - The company has repurchased shares totaling approximately US$480 million in 2024, representing about 2.75% of total issued shares at the end of 2023 [6][27]. - The share repurchase program has been upsized from US$2 billion to US$3 billion and extended until August 31, 2025 [6][27]. Cash Position - As of June 30, 2024, the company reported a combined balance of cash, cash equivalents, restricted cash, and short-term investments amounting to RMB59.7 billion (US$8.2 billion) [25].

Core Viewpoint - KE Holdings Inc. will report its unaudited financial results for Q2 2024 on August 12, 2024, before the U.S. market opens [1] Group 1: Financial Reporting - The earnings conference call is scheduled for 8:00 A.M. Eastern Time on August 12, 2024 [1] - Participants must register online at least 20 minutes prior to the call to receive dial-in numbers and access PIN [1][2] Group 2: Company Overview - KE Holdings Inc. is a leading integrated online and offline platform for housing transactions and services in China [3] - The company operates Lianjia, a prominent real estate brokerage brand, and has over 22 years of experience since its inception in 2001 [3]

Group 1 - KE Holdings Inc. (BEKE) is experiencing significant activity in the options market, particularly with the Nov 15, 2024 $2.50 Call option showing high implied volatility, indicating potential for a major price movement [1] - Implied volatility reflects market expectations for future stock movement, suggesting that investors anticipate a significant event that could lead to either a rally or a sell-off [2] - KE Holdings currently holds a Zacks Rank 4 (Sell) in the Real Estate - Operations industry, which is in the bottom 36% of the Zacks Industry Rank, with no analysts increasing earnings estimates for the current quarter and one analyst revising estimates downward from 23 cents to 22 cents per share [3]