Core Viewpoint - The article discusses the transformation of the Chinese real estate market and highlights Beike's third-quarter performance, indicating a shift towards high-quality development and the emergence of new growth avenues for the company [3][4]. Group 1: Financial Performance - In Q3, Beike's total transaction value (GTV) reached 736.7 billion RMB, with net income growing by 2.1% year-on-year to 23.1 billion RMB and net profit at 747 million RMB [3][4]. - Beike's existing business in the resale housing sector saw a GTV increase of 5.8% year-on-year, while new housing business GTV grew approximately 11% in the first three quarters, reaching 196.3 billion RMB in Q3 [5][6]. Group 2: Business Innovations - Beike has implemented a "tenant separation" mechanism in Shanghai, dividing agents into two categories: those focusing on property sourcing and those on client sourcing, enhancing efficiency and property turnover rates [6][7]. - The company is testing a "B+" product model for new housing, aiming for lower operational costs and broader market penetration, with plans to expand to over 30 cities by year-end [6][7]. Group 3: Diversification and New Growth Areas - Beike's new business segments, including home decoration and rental services, accounted for 45% of total revenue, marking a historical high and indicating a successful second growth curve [3][8]. - Home decoration services generated 4.3 billion RMB in net income with a profit margin of 32%, while rental services reached 5.7 billion RMB in revenue, growing by 45.3% year-on-year [9][10]. Group 4: Share Buyback and Financial Strategy - Beike initiated a significant share buyback, spending 281 million USD in Q3, the highest in nearly two years, with a total of approximately 675 million USD spent this year, representing a 15.7% increase from the previous year [12][13]. - The company maintains a cash balance of around 70 billion RMB, providing a buffer against market fluctuations and supporting ongoing buyback initiatives [13][14]. Group 5: Operational Efficiency and R&D Investment - Beike's operational expenses decreased by 1.8% year-on-year to 4.3 billion RMB, while R&D investment reached 648 million RMB, marking a 13.2% increase [14]. - The company is leveraging technology to enhance efficiency, with AI tools significantly contributing to transaction volumes and agent performance [14].

Core Insights - The company is leveraging AI, VR, and AR technologies to enhance customer decision-making and operational efficiency in the real estate sector [1][2] - Significant investments in R&D have been made, with a total of 18.65 billion RMB in the first three quarters of 2025, reflecting a 13.2% year-on-year increase in Q3 [1] - The company has implemented AI-driven solutions across its core business areas, particularly in rental services, leading to substantial efficiency gains [1][6] R&D Investment - Since its IPO in 2020, the company has invested over 14 billion RMB in R&D, with continuous positive growth in R&D spending for eight consecutive quarters from Q4 2023 to Q3 2025 [2] - The focus on technology innovation stems from a deep understanding of the industry, emphasizing trust in residential services and the enhancement of service providers' capabilities through AI [2] Rental Business Innovations - The rental business has achieved full-process intelligent operations, with AI optimizing various stages such as pricing, negotiation, and auditing, resulting in a 13% increase in efficiency and a 96% reduction in audit time [1][6] - The company has introduced the "Lai Ke" assistant for agents, which has reached 414,000 agents, improving customer engagement and conversion rates [4] Home Decoration Strategy - In the home decoration sector, the company has launched a comprehensive service strategy focusing on quality products, services, and technology, with a 50% higher customer conversion rate in newly established showrooms compared to traditional stores [5] - The company has developed a digital platform, HomeSaaS, and various tech applications to enhance the home decoration process [5] Market Positioning - The company is positioning itself in a buyer's market by utilizing data-driven models to analyze market dynamics and customer preferences, aiming to provide tailored housing solutions [6] - The rental market in China is projected to grow from approximately 1.7 trillion RMB to 1.8 trillion RMB by 2026, indicating ongoing market expansion [7]

Core Insights - Beike's Q3 performance shows a total transaction value (GTV) of 736.74 billion yuan and net revenue of 23.05 billion yuan, reflecting a year-on-year growth of 2.1% despite a decline in profit levels due to the overall downturn in the real estate sector [1] - The company's gross margin decreased by 1.3 percentage points to 21.4%, with GAAP net profit down 36.1% to 747 million yuan and Non-GAAP net profit down 27.8% to 1.286 billion yuan [1] - Beike's "One Body, Three Wings" model is expected to replicate its efficiency from first- and second-tier cities to other markets, indicating potential growth opportunities [1][6] Business Performance - In Q3 2023, Beike's total revenue reached 17.81 billion yuan, with the breakdown as follows: second-hand housing revenue at 6.3 billion yuan, new housing revenue at 5.9 billion yuan, home decoration revenue at 3.2 billion yuan, and rental revenue at 2.4 billion yuan [7] - Non-property transaction service revenue accounted for approximately 31.4% of total revenue in Q3 2023, projected to rise to 45% by Q3 2025, becoming a crucial support for Beike's performance curve [8] Growth Strategy - Beike plans to expand its "B+" product into lower-tier cities, aiming to enter over 30 cities by the end of 2025, leveraging market space expansion to drive business growth [11][12] - The company is focusing on aligning capabilities between first-tier and lower-tier cities in its home decoration business, with a strategy to replicate successful models from major cities [12] AI Integration - Beike is deeply integrating AI into its operations, enhancing efficiency in various stages of the transaction process, including property management and customer engagement [13][20] - AI has significantly improved operational efficiency, with property managers now overseeing an average of over 130 properties per month, up from over 90 properties the previous year [13] - The AI-driven operational model is expected to further increase the average number of properties managed per person to over 200, facilitating rapid performance growth [14] Future Outlook - Beike's management emphasizes two main directions for future growth: expanding into new markets and enhancing internal capabilities through AI [15] - The company aims to leverage AI to optimize operational strategies, improve service delivery, and enhance decision-making processes across its business segments [20][21]

Core Viewpoint - The report from Guojin Securities indicates that Beike-W (02423) has significantly outperformed the market this year, with a positive outlook on the profit release from non-real estate transaction businesses. The adjusted net profit estimates for 2025, 2026, and 2027 are projected to be 59.16 billion, 76.63 billion, and 96.75 billion respectively, with corresponding PE valuations of 23.89, 18.45, and 14.61 times. The "Buy" rating is maintained. Group 1: Existing Housing Business - In Q3 2025, the existing housing business GTV reached 505.6 billion, showing a year-on-year increase of 5.82% but a quarter-on-quarter decrease of 13.35%. Revenue was 6 billion, down 3.64% year-on-year but up 18.33% quarter-on-quarter [1] - The contribution of Lianjia stores to GTV in Q3 2025 was 190 billion, accounting for 37.58% of the existing housing business GTV, with a year-on-year decrease of 3.13 percentage points and a quarter-on-quarter increase of 1.06 percentage points [1] - The profit margin for the existing housing business in Q3 2025 was 38.96%, down 2.05 percentage points year-on-year and 8.53 percentage points quarter-on-quarter [1] - As of September 30, 2025, the number of Beike platform stores was 61,400, an increase of 27.3% year-on-year and 1.4% quarter-on-quarter; the number of agents was 546,000, up 14.5% year-on-year but down 2.2% quarter-on-quarter [1] - The AI product "Haoke" contributed over 50% of transaction volume, with the company leveraging AI technology to enhance potential opportunity acquisition and improve personnel efficiency through the elimination of underperforming agents [1] Group 2: New Housing Business - In Q3 2025, the new housing business GTV was 196.3 billion, reflecting a year-on-year decrease of 13.7%, with revenue at 6.6 billion, down 14.1% year-on-year. This performance aligns with the 14.2% decline of the top 100 developers as reported by CRIC, primarily due to the high base effect from the previous year [2] - Fixed costs were reduced by 25% year-on-year, reaching a historical low [2] Group 3: Home Decoration and Furniture Business - In Q3 2025, the home decoration and furniture business generated revenue of 4.3 billion, with a year-on-year increase of 2.06%. The profit margin was maintained at 32.00%, consistent with the previous quarter [3] - The revenue growth rate has slowed due to adjustments in the second-hand and new housing markets, organizational restructuring, and a proactive strategy to control aggressive growth to mitigate risks [3] - The company has achieved profitability before headquarters expense allocation for two consecutive quarters, indicating a positive outlook for the home decoration and furniture business's contribution to profits [3] Group 4: Rental Business - In Q3 2025, the rental business revenue was 5.7 billion, up 45% year-on-year, primarily due to an increase in available rental sources [4] - The net confirmation ratio has been steadily increasing, contributing to a rise in the business's profit margin to 8.7%. The rental business has achieved breakeven for two consecutive quarters [4]