External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Thematic (Sector/Industry)

<ul><li>NBS May data showed sales value growth narrowed to 7% YoY from 28% YoY in Apr, in line with market expectation.</li><li>Sales volume turned to decline reflecting ASP hike as higher proportion was sold in high tier cities and the price continued to hike in core tier 1&amp;2 cities according to NBS.</li><li>Looking forward, we expect negative growth in June based on high frequency data and the high base, with sales recovery afterward as 1) our leading indicator suggests a better Jul and 2) policy remains supportive, 3) extra liquidity released by key policy rate cut may boost sales. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

NBS May data showed sales value growth narrowed to 7% YoY from 28% YoY in Apr, in line with market expectation.Sales volume turned to decline reflecting ASP hike as higher proportion was sold in high tier cities and the price continued to hike in core tier 1&amp;2 cities according to NBS.Looking forward, we expect negative growth in June based on high frequency data and the high base, with sales recovery afterward as 1) our leading indicator suggests a better Jul and 2) policy remains supportive, 3) extra liquidity released by key policy rate cut may boost sales. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Property Sector – NBS 5M23 data in line: expect sales growth to recover in July

Equity Bottom-Up

<ul><li>BEKE’s share price surged 13/12% on ADR/H-share market in the last two trading days mainly driven by news from BBG which stated that government is preparing a new basket of measures to support property market and Tsingdao to ease the home purchase limit.</li><li>We do NOT find the document on any official sites but based on historical experience and our channel check, we listed 4 possibilities and its implications to the industry in which the base case is assuming most 2nd-tier cities would follow what Tsingdao imposed and will largely stabilize the market sentiment and property sales.</li><li>It implies a 10/20% GTV growth in new home/existing home market in 2023E for BEKE. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

BEKE’s share price surged 13/12% on ADR/H-share market in the last two trading days mainly driven by news from BBG which stated that government is preparing a new basket of measures to support property market and Tsingdao to ease the home purchase limit.We do NOT find the document on any official sites but based on historical experience and our channel check, we listed 4 possibilities and its implications to the industry in which the base case is assuming most 2nd-tier cities would follow what Tsingdao imposed and will largely stabilize the market sentiment and property sales.It implies a 10/20% GTV growth in new home/existing home market in 2023E for BEKE. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Ke Holdings (BEKE US) – New policy? What’s good for BEKE?

<ul><li>BEKE’s reported strong 1Q23 results with adjusted NP doubled from last quarter to reach RMB 3.56bn, strongly beating market expectations.</li><li>Moreover, the Company guided another strong quarter with GTV for ETH/new home to grow &gt;20%/30% YoY.</li><li>Due to improving GTV growth outlook and narrower than expected losses from new business, we raise our forecasts and expect the adjusted NP to reach RMB 7.4/8.5bn in 2023/24E, 17%/6% higher than the consensus. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

BEKE’s reported strong 1Q23 results with adjusted NP doubled from last quarter to reach RMB 3.56bn, strongly beating market expectations.Moreover, the Company guided another strong quarter with GTV for ETH/new home to grow &gt;20%/30% YoY.Due to improving GTV growth outlook and narrower than expected losses from new business, we raise our forecasts and expect the adjusted NP to reach RMB 7.4/8.5bn in 2023/24E, 17%/6% higher than the consensus. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Ke Holdings (BEKE US) – Strong 2Q Guidance Points to a Robust 1H23

<ul><li>The latest high frequency data continues to cheer up the market especially the new home sales which booked +9%/+35% WoW/MTD YoY growth and the YTD decline narrowed to -4% YoY.</li><li>Secondary home sales remained strong at 83% YoY for MTD in Mar.</li><li>Together with another RRR cut as we expected (report) and BEKE’s strong guidance (report), market confidence on sales sustainability was further strengthened.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

The latest high frequency data continues to cheer up the market especially the new home sales which booked +9%/+35% WoW/MTD YoY growth and the YTD decline narrowed to -4% YoY.Secondary home sales remained strong at 83% YoY for MTD in Mar.Together with another RRR cut as we expected (report) and BEKE’s strong guidance (report), market confidence on sales sustainability was further strengthened.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Property Sector – Property+ Weekly: Sales continued to cheer up the market

<ul><li>BEKE’s strong 1Q23 guidance and YTD data proved our higher-than-market sales forecast published in January.</li><li>We expect the sales growth to further improve in 2Q and beyond based on our leading indicator, channel check and low base (2023E EHT at +20% YoY).</li><li>Together with the amplification effect via its ACN network, we expect 23/24E adjusted net profits to achieve RMB6.2/7.7bn, 17/13% higher than consensus now. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

BEKE’s strong 1Q23 guidance and YTD data proved our higher-than-market sales forecast published in January.We expect the sales growth to further improve in 2Q and beyond based on our leading indicator, channel check and low base (2023E EHT at +20% YoY).Together with the amplification effect via its ACN network, we expect 23/24E adjusted net profits to achieve RMB6.2/7.7bn, 17/13% higher than consensus now. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Ke Holdings (BEKE US) – 2Q23E will be another market surprise

China

KE Holdings Inc. operates as an integrated online and offline platform for housing transactions and services. The Company offers existing and new home sales, home rentals, home renovation, real estate financial solutions, and other services. KE Holdings conducts businesses in China.

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KE Holdings (BEKE US)

China Property Sector – NBS 5M23 data in line: expect sales growth to recover in July

Sales volume turned to decline reflecting ASP hike as higher proportion was sold in high tier cities and the price continued to hike in core tier...

CMB International