Company Coverage
KE Holdings Inc (2423 HK): 2Q26: Earnings Beat On Improved Operating Efficiency, But Outlook Weaker Than Expected
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
HK$45.38
HK$60.00
32.2%
HK$53.00
Analyst
Highlights
- Beike’s 2Q26 results came in above expectations. Revenue declined 5.7%
yoy to Rmb24.5b, in line with our and consensus estimates. Non-GAAP net
profit increased 75.4% yoy to Rmb3.2b, beating our and consensus
expectations. Non-GAAP net margin expanded 6ppt yoy to 13.0% in 2Q26.
Beike guided for 3Q26 revenue to be at approximately Rmb20.5b, or an 11%
decline, below our and consensus estimates.
- Maintain BUY with a higher target price of HK$60.00 (US$23.00).
Analysis
- In-line top-line growth. KE Holdings’ (Beike) 2Q26 revenue declined 5.7%
yoy (1Q26: -19.0% yoy), while total GTV increased 7.1% yoy. Revenue from
existing-home transactions grew 4.5% yoy (1Q26: -10.7% yoy) to Rmb7.0b,
mainly driven by an 8.0% yoy increase in existing-home GTV to Rmb629.9b,
reflecting a recovery in transaction activity. Of which, commission revenue
decreased 1.4% yoy to Rmb5.3b, primarily due to a 3.1% yoy decline in GTV
of existing-home transactions served by Lianjia stores to Rmb206.6b.
Revenue from new-home transactions increased 3.8% yoy to Rmb8.9b, with
GTV rising 1.2% yoy to Rmb258.4b (1Q26: -37.2% yoy), supported by
deeper coverage of high-quality projects. New-home take rate remained
broadly stable at 3.46% in 2Q26.
- New initiatives. In 2Q26, home renovation and furnishing revenue declined
30.1% yoy (1Q26: -20.6% yoy) to Rmb3.2b, as the company proactively
optimised its customer acquisition channel mix and moderated certain nonbrokerage
channels. Emerging and other services revenue grew 26.4% yoy
(1Q26: -8.1% yoy) to Rmb546m, mainly driven by financial services. Home
rental services revenue declined 14.8% yoy (1Q26: -1.5% yoy) to Rmb4.8b,
primarily due to a higher proportion of new service offerings under the
Carefree Rent business.
Highlights
- Beike’s 2Q26 results came in above expectations. Revenue declined 5.7%
yoy to Rmb24.5b, in line with our and consensus estimates. Non-GAAP net
profit increased 75.4% yoy to Rmb3.2b, beating our and consensus
expectations. Non-GAAP net margin expanded 6ppt yoy to 13.0% in 2Q26.
Beike guided for 3Q26 revenue to be at approximately Rmb20.5b, or an 11%
decline, below our and consensus estimates.
- Maintain BUY with a higher target price of HK$60.00 (US$23.00).
Analysis
- In-line top-line growth. KE Holdings’ (Beike) 2Q26 revenue declined 5.7%
yoy (1Q26: -19.0% yoy), while total GTV increased 7.1% yoy. Revenue from
existing-home transactions grew 4.5% yoy (1Q26: -10.7% yoy) to Rmb7.0b,
mainly driven by an 8.0% yoy increase in existing-home GTV to Rmb629.9b,
reflecting a recovery in transaction activity. Of which, commission revenue
decreased 1.4% yoy to Rmb5.3b, primarily due to a 3.1% yoy decline in GTV
of existing-home transactions served by Lianjia stores to Rmb206.6b.
Revenue from new-home transactions increased 3.8% yoy to Rmb8.9b, with
GTV rising 1.2% yoy to Rmb258.4b (1Q26: -37.2% yoy), supported by
deeper coverage of high-quality projects. New-home take rate remained
broadly stable at 3.46% in 2Q26.
- New initiatives. In 2Q26, home renovation and furnishing revenue declined
30.1% yoy (1Q26: -20.6% yoy) to Rmb3.2b, as the company proactively
optimised its customer acquisition channel mix and moderated certain nonbrokerage
channels. Emerging and other services revenue grew 26.4% yoy
(1Q26: -8.1% yoy) to Rmb546m, mainly driven by financial services. Home
rental services revenue declined 14.8% yoy (1Q26: -1.5% yoy) to Rmb4.8b,
primarily due to a higher proportion of new service offerings under the
Carefree Rent business.
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
HK$45.38
HK$60.00
32.2%
HK$53.00
Analyst
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