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.

Equity Bottom-Up

<ul><li>We expect industry-wide Existing Home Transactions (EHT) recovery to be stronger than current market expectation (our forecast: 17% YoY GTV growth) in 2023E.</li><li>We also expect Beike’s network efficiency should amplify the benefits from such recovery, as EHT has higher than group average contribution profit margin (CPM).</li><li>In addition, increase in revenue contribution from high CPM (80%+) services revenue generated by Beike’s established agency cooperation network (ACN) could aid long-term margin expansion. </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.

We expect industry-wide Existing Home Transactions (EHT) recovery to be stronger than current market expectation (our forecast: 17% YoY GTV growth) in 2023E.We also expect Beike’s network efficiency should amplify the benefits from such recovery, as EHT has higher than group average contribution profit margin (CPM).In addition, increase in revenue contribution from high CPM (80%+) services revenue generated by Beike’s established agency cooperation network (ACN) could aid long-term margin expansion. 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) – Existing home sales recovery to be better than anticipated

Thematic (Sector/Industry)

<ul><li>We expect property + sector to react positively on CSRC’s pilot scheme since it may accelerate home delivery and social housing with the help of private investment.</li><li>Also, despite limited scope, it may leave some space for hot money into new residential projects and M&amp;A deals especially when the sales are recovering now and trust loans are back.</li><li>This is in line with our previous report that the policy will remain supportive.</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.

We expect property + sector to react positively on CSRC’s pilot scheme since it may accelerate home delivery and social housing with the help of private investment.Also, despite limited scope, it may leave some space for hot money into new residential projects and M&amp;A deals especially when the sales are recovering now and trust loans are back.This is in line with our previous report that the policy will remain supportive.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 – Mildly positive for CSRC’s pilot private investment scheme in real estate

<ul>
<li>Property+ sector saw a decent correction on articles from Economic daily and Qiushi that reiterated property price increase and financial system risk.</li>
<li>It has sparked the market fear of policy direction change right in the middle of improving sales data and momentum.</li>
<li>We agree that the better the data, the less policy support needed, but property policy will continue to stay supportive in the coming months as 1) the new home sales remained fragile and still declined 23% YoY YTD despite the recent improvement.</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.


Property+ sector saw a decent correction on articles from Economic daily and Qiushi that reiterated property price increase and financial system risk.
It has sparked the market fear of policy direction change right in the middle of improving sales data and momentum.
We agree that the better the data, the less policy support needed, but property policy will continue to stay supportive in the coming months as 1) the new home sales remained fragile and still declined 23% YoY YTD despite the recent improvement.

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 – Good news is bad news?

<ul><li>How many roads a man must walk to become a man? The financial crisis in 2008 (new home sales -19% YoY) was the first life or death test for Lianjia but it pulled through the challenging four seasons via anti-cycle store opening to boost top line.</li><li>Then China’s rolling out RMB4tn stimulus in 2009 made Lianjia the distant market leader. 2Q21-3Q22 were the next six seasons when everything went against BEKE (founder’s passing away, developers defaults, hard landing in property market (-30% YoY), commission rate cap risk and what’s not).</li><li>It still survived comfortably with RMB1.3bn net profits in 9M22 and net cash of RMB60bn (incl. ST investments), partly thanks to visionary ACN platform. </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.

How many roads a man must walk to become a man? The financial crisis in 2008 (new home sales -19% YoY) was the first life or death test for Lianjia but it pulled through the challenging four seasons via anti-cycle store opening to boost top line.Then China’s rolling out RMB4tn stimulus in 2009 made Lianjia the distant market leader. 2Q21-3Q22 were the next six seasons when everything went against BEKE (founder’s passing away, developers defaults, hard landing in property market (-30% YoY), commission rate cap risk and what’s not).It still survived comfortably with RMB1.3bn net profits in 9M22 and net cash of RMB60bn (incl. ST investments), partly thanks to visionary ACN platform. 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) – Beke After Ten Seasons; Initiate with Buy

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)