Financial Data and Key Metrics Changes - In FY2025, the company initiated a strategic pivot from sales-driven to efficiency-driven growth, resulting in stable revenue despite market fluctuations, outperforming broader industry trends [5][6] - Full-year revenue from non-housing transaction business reached a record high of 41% of total revenue [6] - Q4 GTV was RMB 724.1 billion, down 36.7% year-on-year, while revenue was RMB 22.2 billion, a decrease of 28.7% year-on-year [9] - Q4 GAAP net profit was RMB 823 million, down 85.7% year-on-year, and non-GAAP net profit was RMB 517 million, representing a decline of 61.5% year-on-year [10][23] Business Line Data and Key Metrics Changes - Existing home business GTV reached RMB 482 billion in Q4, reflecting a 35.3% decrease year-on-year, while revenue was RMB 5.4 billion, down 39% year-on-year [11] - New home business GTV was RMB 207 billion in Q4, a year-on-year decrease of 45.7%, with revenue at RMB 7.3 billion, down 44.5% year-on-year [12][13] - Home renovation and furniture services revenue reached RMB 3.6 billion in Q4, a year-on-year decrease of 12% [14] - Home rental services revenue increased by 18.1% year-on-year to RMB 5.4 billion, driven by a 62% year-on-year increase in rental units under management [16] Market Data and Key Metrics Changes - The existing home transaction market in China saw a historical high in 2025, with the number of transactions increasing by over 10% year-on-year [32] - The new home market is experiencing greater differentiation, with higher quality projects attracting stronger demand [28] Company Strategy and Development Direction - The company is focusing on operational governance and strategic transformation to enhance service capabilities and operational efficiency [30] - The growth model is shifting from scale-driven to efficiency-driven, emphasizing customer value and decision support services [30][31] - AI technology is being embedded across operations to improve efficiency and enhance service delivery [35][66] Management's Comments on Operating Environment and Future Outlook - The management noted that the overall demand for better living remains stable, with consumers seeking professional and reliable services [29] - The company aims to validate its decision support service model in 2026, focusing on improving conversion rates and unit economics [44] Other Important Information - Total shareholder return for 2025 was approximately RMB 1.22 billion, significantly exceeding non-GAAP net income, representing around 170% of non-GAAP net income for the year [25][43] - The company repurchased approximately RMB 921 million in shares for the full year of 2025, reflecting a commitment to shareholder returns [24][25] Q&A Session Summary Question: What is the company's view on the new home business amidst market pressures? - Management acknowledged the structural changes in the new home market and emphasized the need for integrated solutions to improve project efficiency and address developer pain points [54][56][58] Question: How is AI impacting the real estate sector and the company's operations? - Management highlighted that AI is reshaping workflows, improving efficiency in standardized tasks, and allowing service professionals to focus on complex decision-making and client service [60][66][68] Question: How does the company view the influence of new media and KOLs in property transactions? - Management noted that the rise of influencers reflects a shift towards understanding customer needs and providing value beyond just property listings [72][75]

Core Viewpoint - Beike-W (02423) has seen a significant stock price increase, attributed to its inclusion in the Hang Seng China Enterprises Index, which is expected to enhance its market visibility and investor interest [2][5]. Group 1: Stock Performance - Beike-W's stock price rose over 10% during trading, with a current increase of 8.71%, reaching HKD 47.94, and a trading volume of HKD 4.95 billion [2][5]. Group 2: Index Inclusion - On February 13, the Hang Seng Index Company announced that Beike-W will be added to the Hang Seng China Enterprises Index, effective after market close on March 6, 2026, and starting March 9, 2026 [2][5]. Group 3: Financial Forecast - According to CMB International, Beike-W's revenue for Q4 of the previous year is expected to decline by 28.5% year-on-year to RMB 22.2 billion, with a projected non-GAAP net profit of RMB 427 million and a non-GAAP net profit margin of 1.9% [2][5]. - The firm remains optimistic about Beike's strong technological capabilities, quality service, and established broker network, anticipating market share growth in the housing transaction business [2][5]. - For 2026, Beike is expected to implement cost optimization measures in its core real estate transaction business, leading to a projected non-GAAP net profit of RMB 7 billion, a year-on-year increase of approximately 42% compared to the forecasted RMB 4.9 billion for 2025 [2][5].

Core Viewpoint - The report from Jianyin International initiates coverage on Beike-W (02423) with a "buy" rating, projecting a target price of HKD 60.6 based on a 21x P/E ratio for 2026 [1] Group 1: Market Position and Growth - Beike's market share in Gross Transaction Value (GTV) is estimated to be around 23% for 2024, with expectations for further market share growth [1] - The company is expected to leverage its platform ecosystem to expand into real estate-related services, aiming for long-term growth [1] Group 2: Revenue and Profitability Projections - Revenue compound annual growth rate (CAGR) is projected to reach 14% from 2024 to 2027, primarily driven by non-residential transaction businesses [1] - Housing transaction service revenue is expected to remain stable due to moderate growth in transaction amounts and declining commission rates [1] - Non-GAAP net profit margin is anticipated to be temporarily affected by investments in home renovation and leasing businesses in 2025, but is expected to gradually recover to around 8.5% by 2027 [1] - The projected CAGR for non-GAAP net profit from 2024 to 2027 is estimated to be 17% [1]

Core Viewpoint - Jianyin International has initiated coverage on Beike-W (02423) with a "outperform the market" rating, setting a target price of HKD 60.6 based on a 21x P/E ratio for 2026 [1] Group 1: Market Position and Growth - Beike's market share in Gross Transaction Value (GTV) is approximately 23% for 2024, with expectations for further market share growth [1] - The company is expected to leverage its platform ecosystem to expand into real estate-related services, aiming for long-term growth [1] Group 2: Revenue and Profitability Projections - Revenue compound annual growth rate (CAGR) is projected to reach 14% from 2024 to 2027, primarily driven by non-residential transaction businesses [1] - Housing transaction service revenue is expected to remain stable due to moderate growth in transaction amounts and declining commission rates [1] - Non-GAAP net profit margin is anticipated to be temporarily impacted by investments in home renovation and leasing businesses in 2025, but is expected to gradually recover to around 8.5% by 2027 [1] - The non-GAAP net profit CAGR is projected to reach 17% from 2024 to 2027 [1]

Financial Data and Key Metrics Changes - The company's total revenue for 2024 reached RMB93.5 billion, representing a year-over-year growth of 20.2% [28] - Gross margin for the year was 24.6%, with an adjusted operating margin of 7.4% and adjusted net margin of 7.7%, leading to an adjusted net income of RMB7.21 billion [29] - In Q4, total GTV was RMB143.8 billion, a year-over-year increase of 55.5%, while net revenue reached RMB31.1 billion, up 54.1% year over year [30] Business Line Data and Key Metrics Changes - Revenue from existing home transactions reached RMB8.9 billion in Q4, up 47.5% year over year, with GTV at RMB744.8 billion, rising by 59.1% year over year [31] - New home transaction services saw GTV of RMB35.3 billion in Q4, up 49.3% year over year, with revenue reaching RMB13.1 billion, a 72.7% increase year over year [33] - Home renovation and furnishing business achieved total revenue of RMB14.8 billion, growing by 36.1% year over year, while home rental services revenue surged to RMB14.3 billion, up 135% year over year [28][20] Market Data and Key Metrics Changes - The proportion of existing home transactions in total market GTV rose from 40% in 2023 to 46% in 2024, indicating a shift in buyer preferences towards existing homes [27] - The average area of leased homes and the proportion of homes with three bedrooms and above increased year over year in key cities, reflecting changing consumer demands [27] - The new home market faced a decline of 18% in annual transaction volume, but showed signs of recovery in Q4 with a 30% quarter-over-quarter increase in new home sales [26] Company Strategy and Development Direction - The company aims to enhance service quality and operational efficiency through technology, particularly AI, to address the evolving needs of customers and service providers [12][23] - A focus on building a robust ecosystem for service providers and improving the capabilities of top-performing agents is central to the company's strategy [14][15] - The company plans to shift towards a platform-based model, reducing heavy asset investments while promoting high-quality home developments [21][22] Management's Comments on Operating Environment and Future Outlook - Management noted that the real estate market is undergoing significant changes, with increased uncertainty affecting buyer decision-making [11] - The company anticipates a modest recovery in the existing home market in 2025, contingent on stabilizing home prices and improving consumer confidence [70] - The management emphasized the importance of leveraging technology to enhance customer experiences and operational efficiencies in the face of market challenges [24][50] Other Important Information - The company repurchased approximately $760 million worth of shares in 2024, accounting for about 3.9% of total shares outstanding [42] - A final cash dividend of $0.12 per ordinary share was approved for 2024, reflecting the company's commitment to shareholder returns [42] - The company has invested significantly in R&D and technology to support long-term growth and operational improvements [29] Q&A Session Summary Question: Utilization of technology for enhancing business operations - Management discussed the integration of AI to improve customer experience and operational efficiency across various business areas [46][47] Question: Property market outlook and recovery sustainability - Management highlighted the impact of policy changes and market dynamics, indicating a potential for sustained recovery in the property market [58][59] Question: Growth achieved in the agency business and future strategies - Management reported significant growth in agent and store networks, emphasizing the importance of ecosystem optimization and efficiency improvements for future growth [73][74] Question: Home rental business growth and profitability under challenging conditions - Management noted a significant scale-up in the home rental business, driven by operational efficiencies and an increase in managed rental units [84]