Core Viewpoint - The current sentiment among homebuyers in Guangzhou is mixed, with many choosing to wait and observe the market due to pessimism about future price trends and economic conditions [11][12][27]. Group 1: Buyer Sentiment - Many potential buyers are hesitant to purchase homes, expressing concerns about falling prices and the overall economic outlook [11][12]. - A significant number of individuals are opting to delay their home-buying decisions, indicating a lack of urgency and a preference to wait for better market conditions [6][8][11]. - The prevailing attitude among those who are not buying is one of caution, with fears that prices will continue to decline after their purchase [12][27]. Group 2: Motivations for Buying - Some buyers believe that the current market presents a unique opportunity to purchase at lower prices, viewing it as a good time to enter the market [15][19]. - Buyers are motivated by personal needs, such as upgrading for better living conditions or securing properties for their children, rather than solely focusing on investment returns [16][25][27]. - There is a belief among certain buyers that real estate will eventually appreciate again, as they see the cyclical nature of the market [15][19]. Group 3: Economic Perspectives - Buyers are increasingly viewing real estate as a necessary consumption good rather than just an investment, emphasizing the importance of living quality and personal fulfillment [20][23]. - The sentiment that housing demand remains strong regardless of price fluctuations is prevalent, with many asserting that their need for housing will not diminish due to market conditions [27][28]. - Some buyers are willing to leverage debt to purchase homes, viewing it as a strategy to combat inflation and secure assets in uncertain economic times [23].

Core Viewpoint - The overall performance of Beike's latest earnings report is better than expected, with significant revenue growth, but the persistent issue of increasing revenue without profit remains unresolved [1][12][46]. Group 1: Existing Home Business - The GTV (Gross Transaction Value) of the existing home business increased by 28% year-on-year, outperforming the expected 24% growth, indicating the continued impact of policy benefits [1][15]. - Revenue from the existing home business grew by 20%, but this was lower than the GTV growth, reflecting a decline in the comprehensive commission rate [1][17]. - The comprehensive commission rate for existing homes decreased by 1.4 basis points to 1.18%, attributed to a higher proportion of non-self-operated business and potential commission discounts to stimulate transactions [1][17]. Group 2: New Home Business - The new home business saw a remarkable growth in transaction value, with a year-on-year increase of 53%, significantly exceeding market expectations [2][20]. - However, the revenue growth rate for new homes was lower than expected due to a decline in the comprehensive realization rate, which fell by 20 basis points [2][24]. - The new home business's revenue increased by 64% year-on-year, but the growth rate showed a deceleration compared to the previous quarter [2][24]. Group 3: Secondary Business Lines - The secondary business lines, including home decoration, rental, and home services, generated total revenue of 8.38 billion, a year-on-year increase of 39%, surpassing expectations [3][27]. - The rental business experienced a significant growth of 94% year-on-year, indicating a strong market position despite a generally weak rental market [3][29]. - The home decoration business, while improving, still underperformed expectations with a revenue growth of 22% [3][29]. Group 4: Profitability Issues - Despite revenue growth, the adjusted net profit remained nearly flat year-on-year, highlighting the ongoing issue of revenue growth not translating into profit [4][6][34]. - The overall gross profit margin decreased to 20.7%, down 2.3 percentage points from the previous quarter, primarily due to rising commission costs and a higher proportion of low-margin rental business [5][37]. - The operating profit margin fell from 3.2% to 2.5%, reflecting the challenges in maintaining profitability amidst rising costs [5][43]. Group 5: Market Outlook - The performance of Beike is significantly influenced by macroeconomic conditions in the real estate market, making future predictions challenging [12][13]. - Long-term prospects for Beike remain positive due to its dominant market position and execution capabilities, despite short-term volatility [12][13]. - Current valuation corresponds to an adjusted net profit multiple of approximately 16-17x PE, with potential for higher multiples if profit growth resumes [12][13].