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KE Holdings, Inc. Class A (HK:2423)
:2423
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KE Holdings, Inc. Class A
(2423)
Select Model
Select Model
Rating:56Neutral
Price Target:
HK$42.00
▼(-0.71% Downside)
The overall stock score is primarily influenced by stable revenue growth and a strong balance sheet. However, declining profitability, liquidity concerns, and bearish technical indicators weigh heavily on the stock's outlook. The mixed sentiment from the earnings call further adds to the cautious stance.
Positive Factors
Revenue Growth
Consistent revenue growth indicates the company's ability to maintain its market position and expand its service offerings, supporting long-term business sustainability.
AI Integration
Integrating AI into operations enhances efficiency and customer experience, providing a competitive edge and supporting future profitability.
Strong Balance Sheet
A strong balance sheet with low leverage provides financial stability and flexibility, enabling the company to invest in growth opportunities and weather economic fluctuations.
Negative Factors
Declining Profitability
A significant decline in profitability can impact the company's ability to reinvest in its business and return value to shareholders, posing a risk to long-term growth.
Liquidity Concerns
Reduced free cash flow indicates potential liquidity issues, which can limit the company's ability to fund operations and invest in growth initiatives.
Gross Margin Decline
A declining gross margin suggests increasing cost pressures and challenges in maintaining pricing power, which can affect long-term profitability.
KE Holdings, Inc. Class A (2423) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$150.16B
Dividend Yield2.2%
Average Volume (3M)7.58M
Price to Earnings (P/E)35.6
Beta (1Y)1.93
Revenue Growth32.25%
EPS Growth-2.34%
CountryHK
Employees135,072
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.41
Shares Outstanding3,403,080,600
10 Day Avg. Volume7,095,048
30 Day Avg. Volume7,584,211
Financial Highlights & Ratios
PEG Ratio-1.30
Price to Book (P/B)2.13
Price to Sales (P/S)1.62
P/FCF Ratio18.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$57.01Price Target Upside34.78% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
KE Holdings, Inc. Class A Business Overview & Revenue Model
Company DescriptionKE Holdings Inc., through its subsidiaries, engages in operating an integrated online and offline platform for housing transactions and services in the People's Republic of China. It operates through four segments: Existing Home Transaction Services, New Home Transaction Services, Home Renovation and Furnishing, and Emerging and Other Services. The company provides Beike, an integrated online and offline platform for housing transactions and services; Agent Cooperation Network, an operating system that fosters reciprocity and bonding among various service providers; SaaS Systems; owns and operates Lianjia, a real estate brokerage branded store; owns Deyou brand for connected brokerage stores; and other brands. The company was founded in 2001 and is headquartered in Beijing, the People's Republic of China.
How the Company Makes MoneyKE Holdings generates revenue primarily through its real estate services, which include online listings, transaction services, and advertising. The company earns a significant portion of its income from commissions on property transactions facilitated through its platform. Additionally, KE Holdings offers value-added services to real estate agents, creating another revenue stream. The company has established partnerships with various real estate developers and agencies, which enhances its inventory and service offerings, contributing to its overall earnings. Moreover, by leveraging big data and AI technologies, KE Holdings is able to provide tailored services that improve customer engagement and retention, further boosting its revenue potential.
KE Holdings, Inc. Class A Earnings Call Summary
Earnings Call Date:Nov 10, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 12, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment. While there were notable achievements in revenue growth, share repurchase, and operational efficiency, the company faced challenges with a significant decline in net income, existing and new home transaction challenges, and a decrease in gross margin.Q3-2025 Updates
Positive Updates
Revenue Growth and Share Repurchase
Total revenues reached RMB 23.1 billion, up 2.1% year-over-year. The company achieved the highest share repurchase spending in the past 2 years, with a cumulative amount of approximately USD 675 million, up 15.7% year-over-year.
Home Rental Services Surge
Revenue from home rental services reached a record high of RMB 5.7 billion in Q3, up 45.3% year-over-year, driven by rapid growth in the number of rental units under management.
Improved Operational Efficiency
The company optimized costs and expenses, significantly enhancing shareholder returns and achieving city-level profitability in home renovation and rental business before deducting headquarter expenses.
Negative Updates
Decline in Net Income
GAAP net income was RMB 747 million, down 36.1% year-over-year. Non-GAAP net income was RMB 1.29 billion, down 27.8% year-over-year.
Existing and New Home Transaction Challenges
Revenue from existing home transactions reached RMB 6 billion, down 3.6% year-over-year. New home GTV was RMB 196.3 billion, down 13.7% year-over-year, with revenue from new home transactions decreasing by 14.1% year-over-year.
Gross Margin Decline
Gross margin declined by 1.3 percentage points year-over-year to 21.4%, primarily due to structural impacts and a decrease in contribution margin from the existing home business.
Company Guidance
During the third quarter of 2025, KE Holdings achieved significant milestones in its financial and operational performance. The company's total gross transaction volume (GTV) was RMB 736.7 billion, flat year-over-year, while total revenues increased by 2.1% to RMB 23.1 billion. The gross margin was 21.4%, a decrease of 1.3 percentage points from the previous year. GAAP net income fell by 36.1% year-over-year to RMB 747 million, and non-GAAP net income decreased by 27.8% to RMB 1.29 billion. The company highlighted its strategic focus on balancing scale and efficiency, optimizing cost structures, and enhancing shareholder returns, with share repurchase spending reaching a two-year high in a single quarter. In its home rental services, the company reported a record revenue of RMB 5.7 billion, marking a 45.3% increase year-over-year, driven by an increase in rental units under management to over 660,000. The contribution margin for home rental services improved by 4.3 percentage points year-over-year. KE Holdings also emphasized its strategic developments in AI technology to enhance operational efficiency and profitability across its business segments.KE Holdings, Inc. Class A Financial Statement Overview
Summary
KE Holdings shows stable revenue growth and a strong balance sheet with low leverage. However, declining profitability margins and significant reductions in free cash flow raise concerns about operational efficiency and liquidity.Income Statement
KE Holdings shows a modest revenue growth rate of 2.63% TTM, indicating stability in revenue generation. However, the gross profit margin has decreased from previous years, and net profit margin has also declined, reflecting pressure on profitability. The EBIT and EBITDA margins have similarly contracted, suggesting challenges in operational efficiency.65
Positive
Balance Sheet
The company's debt-to-equity ratio remains low at 0.32, indicating a conservative leverage position. However, the return on equity has decreased to 5.58% TTM, showing reduced profitability on shareholder investments. The equity ratio remains strong, suggesting a solid capital structure.70
Positive
Cash Flow
Free cash flow has significantly decreased by 68.57% TTM, indicating potential liquidity issues. The operating cash flow to net income ratio is low, suggesting that cash generation from operations is not keeping pace with reported earnings. The free cash flow to net income ratio remains healthy, but the declining trend is concerning.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 103.05B | 93.46B | 77.78B | 60.67B | 80.75B | 70.48B |
| Gross Profit | 22.83B | 22.94B | 21.72B | 16.03B | 19.07B | 18.95B |
| EBITDA | 4.03B | 4.93B | 9.31B | 817.87M | 762.60M | 4.25B |
| Net Income | 3.90B | 4.06B | 5.88B | -1.39B | -524.13M | 2.78B |
Balance Sheet | ||||||
| Total Assets | 123.69B | 133.15B | 120.33B | 122.77B | 122.72B | 123.66B |
| Cash, Cash Equivalents and Short-Term Investments | 44.98B | 52.76B | 53.89B | 54.90B | 49.85B | 56.66B |
| Total Debt | 21.97B | 22.65B | 17.99B | 12.19B | 7.51B | 7.99B |
| Total Liabilities | 54.85B | 61.70B | 48.13B | 45.24B | 40.69B | 44.47B |
| Stockholders Equity | 68.71B | 71.32B | 72.10B | 68.92B | 66.97B | 66.77B |
Cash Flow | ||||||
| Free Cash Flow | 2.03B | 8.41B | 10.28B | 8.92B | 2.61B | 9.52B |
| Operating Cash Flow | 2.51B | 9.45B | 11.16B | 9.84B | 4.33B | 10.52B |
| Investing Cash Flow | 5.42B | -9.38B | -3.98B | -8.47B | -24.88B | -14.98B |
| Financing Cash Flow | -6.40B | -5.79B | -6.96B | -1.21B | -1.07B | 25.41B |
KE Holdings, Inc. Class A Technical Analysis
Negative
42.30
Price Trends
48.21
Negative
48.31
Negative
49.92
Negative
Market Momentum
-1.92
Positive
34.10
Neutral
15.72
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2423, the sentiment is Negative. The current price of 42.3 is below the 20-day moving average (MA) of 45.55, below the 50-day MA of 48.21, and below the 200-day MA of 49.92, indicating a bearish trend. The MACD of -1.92 indicates Positive momentum. The RSI at 34.10 is Neutral, neither overbought nor oversold. The STOCH value of 15.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2423.
KE Holdings, Inc. Class A Risk Analysis
KE Holdings, Inc. Class A disclosed 95 risk factors in its most recent earnings report. KE Holdings, Inc. Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
KE Holdings, Inc. Class A Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | HK$90.30B | 22.30 | 23.11% | 3.22% | 10.31% | 8.93% | |
70 Outperform | HK$14.03B | 16.34 | 10.30% | 2.85% | -0.95% | 14.89% | |
68 Neutral | HK$19.08B | 11.58 | 15.94% | 4.15% | 6.54% | 3.26% | |
66 Neutral | $20.63B | 13.91 | 3.72% | 4.74% | 7.23% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | HK$26.21B | 20.66 | 7.08% | 1.43% | 5.75% | -31.63% | |
56 Neutral | HK$150.16B | 35.62 | 5.57% | 2.20% | 32.25% | -2.34% |
* Real Estate Sector Average
HK:2423
KE Holdings, Inc. Class A
42.30
-12.07
-22.20%
HK:6098
Country Garden Services Holdings Co
6.41
1.19
22.70%
HK:1209
China Resources Mixc Lifestyle Services Ltd.
41.76
10.74
34.62%
HK:2602
Onewo, Inc. Class H
23.12
2.25
10.78%
HK:2869
Greentown Service Group Co. Ltd.
4.77
1.03
27.54%
HK:6049
Poly Property Services Co., Ltd. Class H
35.00
3.58
11.39%
KE Holdings, Inc. Class A Corporate Events
KE Holdings Reports Q3 2025 Financial Results with Stable GTV and Revenue Growth
Nov 10, 2025
KE Holdings Inc. reported its unaudited financial results for the third quarter of 2025, showing a stable gross transaction value (GTV) of RMB736.7 billion, with a slight increase in existing home transactions and a decline in new home transactions. The company’s net revenues rose by 2.1% year-over-year to RMB23.1 billion, while net income decreased by 36.1% to RMB747 million. Despite the decline in net income, the company expanded its number of stores and agents significantly, and its mobile monthly active users increased to 49.3 million. KE Holdings is focusing on improving operational efficiency and customer experience through technological innovations, such as integrating AI into home rental services, which contributed over RMB100 million in profit for the quarter.
The most recent analyst rating on (HK:2423) stock is a Buy with a HK$47.00 price target. To see the full list of analyst forecasts on KE Holdings, Inc. Class A stock, see the HK:2423 Stock Forecast page.
KE Holdings Inc. Schedules Board Meeting to Review Financial Results
Aug 14, 2025
KE Holdings Inc. has announced an upcoming board meeting scheduled for August 26, 2025, where the board will review and approve the company’s unaudited financial results for the second quarter and first half of the year. This announcement indicates the company’s commitment to transparency and regular financial reporting, which could impact its market positioning and stakeholder confidence positively.
The most recent analyst rating on (HK:2423) stock is a Buy with a HK$65.00 price target. To see the full list of analyst forecasts on KE Holdings, Inc. Class A stock, see the HK:2423 Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.