Jingu Finance | Founder Securities issued a research report stating that Ke Holdings (02423) released its 2024Q3 performance report, with a revenue of 22.6 billion yuan in 2024Q3 (+26.8% year-on-year); achieving a net income of 1.168 billion yuan, adjusted net income of 1.782 billion yuan. The bank stated that the company's existing home business revenue in 2024Q3 reached 6.2 billion yuan, roughly the same as the same period last year. The total transaction volume of existing homes recorded 477.8 billion yuan (+8.8% year-on-year). While the existing home business GTV achieved significant growth, the main reason for the lack of growth in existing home revenue is that the contribution ratio of existing home business transaction volume by Beike agents has increased. This portion of revenue is based on the net amount of platform services, franchise services, and other value-added services, while for transactions conducted through the Lianjia brand, revenue is based on the total commission income.

The bank continued to point out that the company's revenue from new home business in 2024Q3 reached 7.7 billion yuan (+30.9% year-on-year), mainly due to a year-on-year increase in new home GTV by 18.4% to 227.6 billion yuan, and the improvement in new home commission rates. Among them, the GTV of new home transactions facilitated by Beike agents, specialized sales teams with expertise in new home business, and other sales channels on the Beike platform reached 183 billion yuan (+20.5% year-on-year), with new home GTV through the Lianjia brand reaching 44.5 billion yuan (+10.5% year-on-year). In addition, according to the Hang Seng Composite Index and the conditions for inclusion in the Hong Kong Stock Connect, the company currently meets the selection criteria and is expected to be formally included in the Hong Kong Stock Connect in the first quarter of next year.

The bank stated that the company's revenue has seen a significant increase along with GTV, demonstrating the effective implementation of its global strategy with three wings, while ongoing share buybacks showcase confidence in development. The bank expects the company's revenues for 2024-2026 to be 91.37 billion yuan, 101.21 billion yuan, and 112.03 billion yuan, respectively, with net income attributable to shareholders of 6.4 billion yuan, 6.94 billion yuan, and 7.68 billion yuan, corresponding to PEs of 27.2x, 25.1x, and 22.7x, maintaining a “buy” rating.