Core Viewpoint - The relationship between platforms and store owners is crucial, with platforms needing to empower store owners for mutual growth in a changing real estate market [1][2]. Background Context - The real estate industry is undergoing significant changes, with first-line stores facing challenges, prompting platforms to adopt a crisis awareness mindset [2]. - Store owners are viewed as cooperative clients, emphasizing the need for platforms to support their growth for a win-win situation [2]. Challenges Faced by Store Owners - The market has shifted from a seller's market to a buyer's market, leading to an increase in listings but a decrease in buyers, complicating business management for agents [4]. - The transition from new homes to existing homes as the primary market segment has increased decision complexity for consumers, impacting transaction cycles and agent performance [4][5]. - Younger agents prioritize job satisfaction, and a lack of emotional support from store owners can affect agent retention and store management [5]. Empowerment Strategy - Beike introduced the "1+5+2" strategy, focusing on regional governance and five key areas: mechanism construction, transparency, service commitment, business assistance, and honor creation [6][8]. - The strategy aims to alleviate operational pressures on store owners, stabilize their confidence, and enhance collaborative efficiency [6][7]. Implementation and Results - As of June 2025, Beike has established 1,899 regional governance councils and 534 business effect circles, promoting collaboration and resource sharing among stores [8]. - The store points system has been implemented in over 12,000 stores, distributing over 1.1 billion in value, enhancing performance and service quality [8]. - Beike is committed to investing 400 million yuan in resources to achieve shared governance and benefits with store owners [8]. Long-term Vision - The residential service industry faces a cycle of poor consumer experience and struggling businesses, necessitating a shift in operational logic to improve service quality [9][10]. - Beike's long-term strategy involves continuous investment in industry infrastructure and service standards, aiming for sustainable growth and improved consumer trust [11].

Core Viewpoint - The article emphasizes the enduring importance of offline commerce in the digital age, highlighting its role in consumer trust, experience, and community connection, despite the rise of online shopping [1][2][3]. Summary by Sections Importance of Offline Commerce - Offline commerce serves as a crucial bridge between production and consumption, establishing trust between consumers and brands [3]. - It provides unique experiential advantages that online channels cannot replicate, such as immediate service and personal interaction [3][4]. - Offline stores act as cultural and emotional landmarks within cities, contributing to community identity and social connections [4]. New Vitality in Offline Commerce - Offline commerce is undergoing a transformation, evolving from traditional sales points to multifunctional spaces that integrate service, experience, and community engagement [7][8]. - The rise of the Z generation has shifted consumer preferences towards stores that offer unique experiences and cultural atmospheres [7][8]. - Companies like Lianjia (链家) are redefining their roles by embedding themselves within communities, providing various services beyond real estate transactions [8][11]. Role of Store Managers - Store managers are pivotal in driving the vitality of offline stores, influencing customer experiences and community engagement [15][20]. - Effective store management involves adapting strategies to local community needs and fostering a culture of service and support [15][16]. - Successful store managers create emotional connections with customers, enhancing brand loyalty and community trust [16][20]. Human Element in Offline Commerce - The essence of offline commerce lies in its ability to foster human connections, serving as a space for emotional engagement and cultural exchange [21][22]. - The future of offline commerce is not about competing with online platforms but about returning to its core values of experience, connection, and community [22][23]. - Businesses that can provide differentiated experiences and emotional connections will thrive in the evolving commercial landscape [23].

Core Viewpoint - The company is a leading integrated online and offline real estate transaction service platform, with a strong market position and growth potential in various business segments [1][2]. Group 1: Company Overview - The company began operations in 2001 and launched its integrated platform in 2018, going public on the New York Stock Exchange in 2020 and completing a dual listing in Hong Kong in 2022 [1]. - The company has established a strategic direction of "one body and three wings," focusing on real estate brokerage while simultaneously driving growth in home renovation, rental services, and data-driven residential development [1][3]. - In 2024, the company expects total transaction volume to reach 3.3 trillion yuan, with net revenue projected at 934.6 billion yuan, marking a historical high [1]. Group 2: Market Position and Performance - The company maintains a dominant position in the real estate brokerage industry, with a significant market share in both the second-hand and new housing markets [2]. - In 2024, the transaction volume for second-hand homes is expected to reach 2.2 trillion yuan, accounting for 31% of the national market, while new home transactions are projected at 970 billion yuan, representing 11.4% of the national total [2]. - The company has implemented standards and networks that enhance service quality and create competitive advantages, addressing industry pain points [2]. Group 3: Growth Drivers - The home renovation and furnishing segment is rapidly growing, with projected transaction volume and net revenue of 16.9 billion yuan and 14.77 billion yuan, respectively, from 2021 to 2024, reflecting a CAGR of 329.7% and 321.3% [3]. - The rental business has expanded significantly, with the number of managed rental units increasing from 70,000 in 2022 to 420,000 by 2024 [3]. - The company is exploring new growth opportunities through its data-driven residential development platform, which aims to provide comprehensive solutions based on consumer needs [3]. Group 4: Financial Outlook - The company is expected to deliver earnings per share (EPS) of 1.58 yuan, 1.83 yuan, and 2.11 yuan for the years 2025 to 2027, with corresponding price-to-earnings (PE) ratios of 28.7, 24.8, and 21.5 [3].

Investment Rating - The investment rating for the real estate brokerage industry is currently below the neutral line, indicating a downward trend in the market [6][9]. Core Insights - As of May 2025, the real estate brokerage industry’s prosperity index stands at 45.3, slightly up by 0.7 points from April, but still below the critical threshold of 50, suggesting ongoing issues with insufficient demand and transaction activity in the second-hand housing market [6][9]. - The report indicates a mixed performance across 46 key cities, with only 10 cities surpassing the 50 mark, while the remaining 36 cities are experiencing contraction [9][18]. - The report highlights that while the overall market remains under pressure, there are signs of stabilization at the bottom, particularly in certain smaller cities benefiting from policy support and local demand [18]. Summary by Sections National Real Estate Brokerage Industry Overview - The prosperity index for the national real estate brokerage industry in May 2025 is 45.3, indicating a slight improvement but still reflecting a downward trend overall [6][9]. - The index's increase is attributed to a reduction in the decline of housing search enthusiasm and improved transaction efficiency, despite a continuous rise in total housing listings [10][11]. Key Cities' Real Estate Brokerage Industry Prosperity - Among the 46 cities analyzed, only 10 have a prosperity index above 50, with first-tier cities facing significant pressure and second-tier cities showing considerable challenges [9][15]. - The report notes that third and fourth-tier cities are performing well, with cities like Yichang leading with a prosperity index of 68.15, driven by local demand and supportive policies [15][18]. Market Dynamics - The report identifies a "partial recovery and increasing differentiation" in the market, with over half of the 25 cities showing an increase in their prosperity index, while 21 cities experienced a decline [15]. - The average prosperity index for third and fourth-tier cities is 51.56, outperforming first-tier cities at 46.41, indicating a significant disparity in market performance across different city tiers [15][18].

Core Viewpoint - Beike has launched the "1+5+2" strategic system to empower store development, committing 400 million yuan to enhance mechanisms, service commitments, and business support for high-quality growth in the real estate industry [1][4]. Group 1: Strategic Initiatives - The "1+5+2" support measures include a regional co-governance council as the foundation, focusing on five areas: mechanism construction, fairness and transparency, service commitments, business assistance, and honor creation [2][4]. - Ten key initiatives have been introduced, such as a store points system and risk coverage, aimed at alleviating operational pressure on store owners and enhancing collaborative efficiency [2][4]. Group 2: Market Challenges - Real estate brokerage stores face significant challenges, including a shift to a buyer's market, slower transaction speeds, and increased management difficulties [3][4]. - The uncertainty in the market has heightened the pressure on store owners, necessitating a focus on long-term strategies to navigate these challenges [4]. Group 3: Operational Support - Beike aims to increase certainty for store owners through initiatives like ACN network collaboration and the establishment of regional co-governance councils, with 1,899 councils and 534 business circles set up by June 2025 [4]. - The store points system has already covered over 12,000 stores, distributing rights valued at over 110 million yuan, promoting both performance and service quality [4][5]. Group 4: Local Implementation and Impact - In Chengdu, the points system will be implemented starting July 2024, with 3,610 local stores already participating, averaging 12,700 yuan in rights value per store [5]. - The initiative has reportedly improved team dynamics and customer satisfaction, demonstrating the effectiveness of the mechanism [5]. Group 5: Long-term Vision - Beike emphasizes a commitment to long-termism, viewing brand owners and store owners as collaborative partners, and aims to enhance the overall service experience for consumers [2][8]. - The company continues to invest in industry infrastructure and service standards, positioning itself for sustainable growth and improved service quality in the future [8].

Investment Rating - The report initiates coverage with a "Buy" rating for the company [7] Core Views - The company is a leading integrated online and offline real estate transaction service platform, with a strong foundation in real estate brokerage and a strategic focus on three wings of growth [6][11] - The company is expected to achieve a total transaction volume of CNY 3.3 trillion in 2024, with net revenue reaching CNY 934.6 billion, marking a historical high [6][20] - The company emphasizes shareholder returns, with a significant cash reserve and a share buyback plan in place [27] Summary by Sections 1. Leading Integrated Real Estate Transaction and Service Platform - The company began operations in 2001 and has expanded its services to include second-hand and new home transactions, home decoration, and rental services [11] - The total transaction volume is projected to reach CNY 3.3 trillion in 2024, reflecting a year-on-year growth of 6.6% [20] 2. Real Estate Brokerage: Strong Leadership and Operational Advantages - The company holds a dominant position in the real estate brokerage industry, with a total transaction volume of CNY 3.3 trillion in 2024, significantly ahead of competitors [48] - The company has established a unique competitive advantage through its "True Source" standard and ACN network, addressing industry pain points [51] 3. Three Wings Business: Home Decoration and Rental Services - The home decoration segment is rapidly growing, with a projected transaction volume of CNY 169 billion in 2024, reflecting a CAGR of 329.7% from 2021 to 2024 [6] - The rental service has expanded significantly, with managed properties increasing from 70,000 in 2022 to 420,000 in 2024 [6] 4. Profit Forecast and Investment Recommendations - The company forecasts EPS of CNY 1.58, CNY 1.83, and CNY 2.11 for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 28.7, 24.8, and 21.5 [7] - The report highlights the company's commitment to shareholder returns, with a cash dividend of USD 600 million in 2023 and USD 400 million in 2024 [27]

Investment Rating - The report gives a "Buy" rating for the company, Beike-W (2423.HK), with a current stock price of HKD 49.55 [1]. Core Views - Beike is a leading integrated online and offline real estate transaction service platform, with a strong foundation in real estate brokerage and a strategic focus on three wings: home decoration, rental services, and Beihome [6][11]. - The company is expected to achieve a total transaction volume of CNY 3.3 trillion in 2024, with net revenue reaching CNY 934.6 billion, marking a historical high [6][21]. - The company emphasizes shareholder returns, with a significant cash reserve and a share buyback plan in place [28]. Summary by Sections 1. Leading Integrated Real Estate Transaction and Service Platform - Beike began operations in 2001 and has expanded its services to include second-hand and new home transactions, home decoration, and rental services [11]. - The company has established a "one body, three wings" strategy, with a projected total transaction volume of CNY 3.3 trillion in 2024 [6][11]. 2. Real Estate Brokerage: Strong Leadership and Operational Advantages - Beike holds a dominant position in the real estate brokerage industry, with a total transaction volume of CNY 3.3 trillion in 2024, significantly ahead of competitors [51]. - The company has implemented the "True Source" standard and the ACN network, enhancing service quality and operational efficiency [54]. 3. Three Wings Business: Home Decoration, Rental, and Beihome Potential - The home decoration segment is rapidly growing, with a projected transaction volume of CNY 169 billion in 2024, reflecting a CAGR of 329.7% from 2021 to 2024 [6]. - The rental business has expanded significantly, with managed properties increasing from 70,000 in 2022 to 420,000 in 2024 [6]. 4. Profit Forecast and Investment Recommendations - The report forecasts EPS of CNY 1.58, CNY 1.83, and CNY 2.11 for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 28.7, 24.8, and 21.5 [7]. - The company is expected to maintain a stable commission rate in the new home market, while the second-hand home commission rate may face pressure [6].

Core Viewpoint - The launch of the "New Employment Group" service station in Guangzhou marks a significant step in providing support and community engagement for new employment groups, enhancing their sense of belonging and well-being [1][3]. Group 1: Service Station Launch - The "New Employment Group" service station, named "Yancheng Red Station," was inaugurated at the Guangzhou Lianjia Yahuju branch, officially activating 208 stores across the city to serve new employment groups [1][3]. - The initiative aims to provide daily care, participation in party-building activities, and community volunteer services for new employment groups, enhancing their sense of gain and belonging [1][3]. Group 2: Project Overview - The project is organized by various local government departments and is supported by Beike and Lianjia, aiming to create a social welfare brand for new employment groups [3][4]. - Beike plans to establish 1,500 to 2,000 service stations nationwide this year, covering major cities such as Beijing, Shanghai, Guangzhou, Shenzhen, and Chengdu [3][4]. Group 3: Community Engagement - The service station provides comprehensive basic care, including facilities like sofas, bookshelves, microwaves, and emergency supplies, catering to the needs of new employment groups [8][12]. - It features a dedicated area for party-building activities, offering resources for community service and encouraging participation from new employment groups [12][13]. Group 4: Social Responsibility - Beike's initiative reflects its commitment to social responsibility, transforming commercial spaces into multifunctional areas that serve both business and community needs [3][4]. - The project aims to foster a harmonious community environment by encouraging new employment groups to engage in grassroots governance and community service activities [12][13].

Core Viewpoints - The company reported Q1 2025 earnings with revenue of 23.33 billion, a year-on-year increase of 42%, and Non-GAAP net profit of 1.39 billion, which remained stable year-on-year [1] - The company's GTV reached 843.7 billion, a 34% year-on-year increase, and revenue exceeded market expectations [1] - The decline in profit margin from existing housing business and the increase in fixed salary costs impacted overall profitability [1] Group 1: Existing Housing Performance - Existing housing GTV grew steadily by 28% year-on-year to 580.3 billion, but the overall monetization rate decreased due to a higher contribution from non-chain sources [2] - Revenue from existing housing increased by 20%, which was lower than the GTV growth rate [2] - The contribution profit margin for existing housing dropped by 6.4 percentage points year-on-year to 38% due to increased fixed salary costs and expansion efforts [2] Group 2: New Housing and Other Segments - New housing GTV grew significantly by 53% year-on-year to 232.2 billion, outperforming the market where overall sales declined by 2% [2] - The commission rate for new housing increased by 0.2 percentage points to 3.5%, indicating developers' growing reliance on the company's channels [2] - The home decoration segment showed improved profitability, while rental income surged by 94% year-on-year to 5.1 billion, with a contribution profit margin of 6.7% [2] Group 3: Profit Forecast and Investment Recommendations - The company maintains a buy rating and adjusts the target price to 56.04 HKD, reflecting its strong market position and potential for growth during the real estate recovery cycle [3] - Adjustments were made to revenue growth rates and profit margins for various business segments, with Non-GAAP EPS forecasts for 2025 and 2026 updated to 2.06 and 2.68 respectively [3] - The target price corresponds to a 25 times PE ratio based on comparable companies [3]

Core Viewpoint - Beike (NYSE: BEKE, 02423.HK) reported strong financial performance for Q1 2025, driven by positive market conditions and strategic focus on AI applications [2][3]. Financial Performance - Total Gross Transaction Value (GTV) reached 843.7 billion yuan, a year-on-year increase of 34.0% [2]. - Net revenue was 23.3 billion yuan, up 42.4% year-on-year [2]. - Net profit stood at 855 million yuan, reflecting a significant growth of 98% [2]. - The revenue from existing home business grew by 20.0%, while new home business revenue surged by 64.2% [2]. - Non-real estate transaction services revenue increased by 46.2%, accounting for 35.9% of total net revenue [2][8]. Market Trends - The real estate market continued to benefit from policies implemented in September 2024, with new home GTV increasing by 53% [4]. - Existing home GTV reached 580.3 billion yuan, a 28.1% increase year-on-year [4]. - The overall supply-demand relationship in the market improved, contributing to increased transaction volumes [4]. Strategic Focus - The company plans to balance growth and efficiency, with a strong emphasis on AI investments [3][5]. - Management aims to enhance collaboration with developers and improve service efficiency through various tools and platforms [5][6]. - AI tools such as "Buding" for consumers and various assistants for agents are being deployed to improve matching efficiency and service quality [6][7]. Non-Real Estate Business Growth - Non-real estate transaction services saw a net revenue increase of 46.2%, with home decoration and furniture services performing well [8]. - Home decoration services generated 2.9 billion yuan in revenue, a 22.3% increase, with a profit margin of 32.6% [8]. - Rental service revenue reached 5.1 billion yuan, a remarkable growth of 93.8% year-on-year, supported by an increase in managed properties [8].