KE Holdings reports Q2 EPS 27c, consensus 19c

Reports Q2 revenue $2.7B, consensus $2.73B. CEO Stanley Yongdong Peng commented, “With the recovery of China’s real estate and residential markets, in the first half of 2023, our operational and financial results have meaningful improvement compared to the same period of last year…At the same time, we rapidly expanded our emerging businesses, achieving breakthroughs in quality, scale and economic performance in our home renovation and furnishing services, as well as robust development and efficiency gains in our rental services. The combination of these initiatives placed us in a strong position to seize the expanding opportunity during market recovery and facilitated our ability to, once again, outperform the market…” Tao Xu, CFO, added, “During Q2 of this year, China’s housing market sustained its recovery momentum, although the pace was more moderate compared to the surge in Q1, which was mostly fueled by pent-up demand…Our net income for Q2 stood at RMB1,300M, compared to net loss of RMB1,866M in the same period of 2022, while non-GAAP net income was RMB2,364M in this quarter, compared with net loss of RMB619M in the corresponding period of 2022…Our strong cash reserves and prudent financial management enabled us to proactively pursue shareholder return initiatives. As a company focused on creating long-term value for our shareholders, we remain dedicated to enhancing shareholder value, and hope to provide continuous shareholder returns as we strive for future success.”