Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Bottom-Up

<ul>
<li>In 2Q24, KE’s revenue grew by 20% YoY despite the weak property market.</li>
<li>We believe property developers and personal landlords need KE more than the prosperous time.</li>
<li>We believe the stock has an upside of 148% for the end of 2025. Buy.</li>
</ul>


In 2Q24, KE’s revenue grew by 20% YoY despite the weak property market.
We believe property developers and personal landlords need KE more than the prosperous time.
We believe the stock has an upside of 148% for the end of 2025. Buy.


KE (BEKE US): Why Earning Money in Weak Market

<ul>
<li>China Literature’s revenue increased by 28% YoY in 1H24, because four novel copyrights for movies brought box office hits.</li>
<li>KE revenue increased by 20% YoY in 2Q24 compared with a 19% YoY decrease in 1Q24, as government policies supported existing home transaction.</li>
<li>Alibaba announced that it will recruit 1,000 fresh graduates for tech positions in 2025.</li>
</ul>


China Literature’s revenue increased by 28% YoY in 1H24, because four novel copyrights for movies brought box office hits.
KE revenue increased by 20% YoY in 2Q24 compared with a 19% YoY decrease in 1Q24, as government policies supported existing home transaction.
Alibaba announced that it will recruit 1,000 fresh graduates for tech positions in 2025.


China Consumption Weekly (19Aug2024): China Literature, BEKE, Alibaba, JD, JD Health, Tencent Music

Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>ATAT US/TCOM US:Daily Traffic Volume growth on highways is flattish YoY During the Summer Travel Season(-/-)</li>
<li>BEKE US: Decrease in New Short-term Loans to Residents in July, but Increase in New Long-term Loans(+)</li>
<li>BEKE US:House prices continued to decline in July . (-)</li>
</ul>


ATAT US/TCOM US:Daily Traffic Volume growth on highways is flattish YoY During the Summer Travel Season(-/-)
BEKE US: Decrease in New Short-term Loans to Residents in July, but Increase in New Long-term Loans(+)
BEKE US:House prices continued to decline in July . (-)


[Blue Lotus Daily]:ATAT US/TCOM US/BEKE US/NIO US/LI US/1810 HK/1211 HK/XPEV US/LKNCY US

<ul>
<li>KE Holdings (BEKE) reported C2Q24 revenue 12%/9% higher than our estimates/consensus, and non-GAAP NI 19%/49% higher than our estimates/consensus, due to market share gain and take rate hike.</li>
<li>We particularly like its business scalability, as its agent efficiency kept stable despite growing connected agents.</li>
<li>We maintain the stock as BUY rating and raise TP to US$24 to reflect the better growth outlook from market share gains.</li>
</ul>


KE Holdings (BEKE) reported C2Q24 revenue 12%/9% higher than our estimates/consensus, and non-GAAP NI 19%/49% higher than our estimates/consensus, due to market share gain and take rate hike.
We particularly like its business scalability, as its agent efficiency kept stable despite growing connected agents.
We maintain the stock as BUY rating and raise TP to US$24 to reflect the better growth outlook from market share gains.


[KE Holdings Inc. (BEKE US, BUY, TP US$24) TP Change]: Market Share Gain Is the Main Catalyst

<ul>
<li>Macro News Update: Central Economic Work Conference in July shifts focus of short-term economic efforts to promoting consumption.（+）</li>
<li>LI US/1211 HK/1810 HK/ NIO US/ XPEV US: New energy vehicle deliveries generally rose in the 30th week of 2024, with BYD, Ideal and Xiaomi hitting new highs （/////////）</li>
<li>BEKE US:A subsidiary of Beike acquires two commercial and residential land in Xi'an (/)</li>
</ul>


Macro News Update: Central Economic Work Conference in July shifts focus of short-term economic efforts to promoting consumption.（+）
LI US/1211 HK/1810 HK/ NIO US/ XPEV US: New energy vehicle deliveries generally rose in the 30th week of 2024, with BYD, Ideal and Xiaomi hitting new highs （/////////）
BEKE US:A subsidiary of Beike acquires two commercial and residential land in Xi'an (/)


[Blue Lotus Daily]:LI US/1211 HK/1810 HK/ NIO US/ XPEV US/BEKE/Macro News Update/China Manufacturing

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.

Price Gauge
52-week Range	0.00 - 0.00
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KE Holdings (BEKE US)

KE (BEKE US): Why Earning Money in Weak Market

We believe property developers and personal landlords need KE more than the prosperous time. We also believe the stock has an upside of 148% for...

Ming Lu

China Consumption Weekly (19Aug2024): China Literature, BEKE, Alibaba, JD, JD Health, Tencent Music

China Literature’s revenue increased by 28% YoY in 1H24. KE revenue increased by 20% YoY in 2Q24. Alibaba announced that it will recruit 1,000...

Ming Lu

[Blue Lotus Daily]:ATAT US/TCOM US/BEKE US/NIO US/LI US/1810 HK/1211 HK/XPEV US/LKNCY US

Summer travel season sees flat growth in highway traffic volume, decrease in short-term loans but increase in long-term loans, and continued...

Blue Lotus Research Institute

[Blue Lotus Daily]:LI US/1211 HK/1810 HK/ NIO US/ XPEV US/BEKE/Macro News Update/China Manufacturing

Central Economic Work Conference shifts focus to promoting consumption, new energy vehicle deliveries rise, Beike subsidiary acquires land in Xi'an.

Blue Lotus Research Institute

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

KE (BEKE US): Why Earning Money in Weak Market

We believe property developers and personal landlords need KE more than the prosperous time. We also believe the stock has an upside of 148% for...

Ming Lu

China Consumption Weekly (19Aug2024): China Literature, BEKE, Alibaba, JD, JD Health, Tencent Music

China Literature’s revenue increased by 28% YoY in 1H24. KE revenue increased by 20% YoY in 2Q24. Alibaba announced that it will recruit 1,000...

Ming Lu

[Blue Lotus Daily]:ATAT US/TCOM US/BEKE US/NIO US/LI US/1810 HK/1211 HK/XPEV US/LKNCY US

​Summer travel season sees flat growth in highway traffic volume, decrease in short-term loans but increase in long-term loans, and continued...

Blue Lotus Research Institute

[KE Holdings Inc. (BEKE US, BUY, TP US$24) TP Change]: Market Share Gain Is the Main Catalyst

​KE Holdings (BEKE) outperformed revenue and non-GAAP NI estimates in Q2, showing market share gains and scalability. BUY rating maintained with TP...

Blue Lotus Research Institute

[Blue Lotus Daily]:LI US/1211 HK/1810 HK/ NIO US/ XPEV US/BEKE/Macro News Update/China Manufacturing

​Central Economic Work Conference shifts focus to promoting consumption, new energy vehicle deliveries rise, Beike subsidiary acquires land in Xi'an.

Blue Lotus Research Institute

Summer travel season sees flat growth in highway traffic volume, decrease in short-term loans but increase in long-term loans, and continued...

KE Holdings (BEKE) outperformed revenue and non-GAAP NI estimates in Q2, showing market share gains and scalability. BUY rating maintained with TP...

Central Economic Work Conference shifts focus to promoting consumption, new energy vehicle deliveries rise, Beike subsidiary acquires land in Xi'an.