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>BEKE's 1Q25 results beat expectations, but outlook guidance raised concerns.</li><li>1Q25 revenue rose 42% YoY to RMB 23.3bn (+4%/+3% above Bloomberg consensus/CMBI estimates), mainly driven by new home (+64% YoY) and emerging biz (+46% YoY).</li><li>Non-GAAP net profit reached RMB 1.4bn in the quarter (flat YoY), beating Bloomberg/CMBI estimates by 22%/30%. </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 1Q25 results beat expectations, but outlook guidance raised concerns.1Q25 revenue rose 42% YoY to RMB 23.3bn (+4%/+3% above Bloomberg consensus/CMBI estimates), mainly driven by new home (+64% YoY) and emerging biz (+46% YoY).Non-GAAP net profit reached RMB 1.4bn in the quarter (flat YoY), beating Bloomberg/CMBI estimates by 22%/30%. 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) - 1Q25 Results Beat, but Moderate Outlook Guidance Raised Concerns

<ul><li>Property sales during Labor Day holiday (May 1-5) were solid with daily transaction volume for new homes in 30 cities/second-hand homes in 16 cities rising 28/162% YoY, respectively, demonstrating stable home-buying sentiment post the March peak without the market-feared cliff-like decline.</li><li>With a high base in 2Q25, we forecast existing home transaction/new home transaction (EHT/NHT) GTV growth of 14%/2% YoY to RMB650/240bn (vs.1Q25E: +26%/+43% YoY).</li><li>We are confident in revenue growth given the company’s active market share expansion but stay cautious on profitability due to elevated CSR-related expenses that will likely remain high in recent years, albeit creating non-negligible long-term value. </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 sales during Labor Day holiday (May 1-5) were solid with daily transaction volume for new homes in 30 cities/second-hand homes in 16 cities rising 28/162% YoY, respectively, demonstrating stable home-buying sentiment post the March peak without the market-feared cliff-like decline.With a high base in 2Q25, we forecast existing home transaction/new home transaction (EHT/NHT) GTV growth of 14%/2% YoY to RMB650/240bn (vs.1Q25E: +26%/+43% YoY).We are confident in revenue growth given the company’s active market share expansion but stay cautious on profitability due to elevated CSR-related expenses that will likely remain high in recent years, albeit creating non-negligible long-term value. 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) - Holiday Sales Suggest Stable Home-Buying Sentiment

<ul><li>Beike reported 4Q24 results: revenue rose 47% YoY to RMB31.1bn, beating Bloomberg consensus and CMBI estimates by 8%, mainly due to the sizzling transaction sentiment in 4Q24 where existing home GTV (EHT) surged 60% YoY, increasing its FY market share by 3ppts, and new home transactions (NHT) jumped 50% YoY.</li><li>Non-GAAP net income was RMB1.3bn, with a margin of 4.3%, missing consensus/our estimates by 24%/39% due to RMB1.5bn in one-off expenses.</li><li>We think BEKE's measures, such as 1) further expansion of agent teams, 2) continuous shift to compensation structure, and 3) reserved attitude on profit-taking in the early recovery stage of property market may continue to refrain its profitability. </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.

Beike reported 4Q24 results: revenue rose 47% YoY to RMB31.1bn, beating Bloomberg consensus and CMBI estimates by 8%, mainly due to the sizzling transaction sentiment in 4Q24 where existing home GTV (EHT) surged 60% YoY, increasing its FY market share by 3ppts, and new home transactions (NHT) jumped 50% YoY.Non-GAAP net income was RMB1.3bn, with a margin of 4.3%, missing consensus/our estimates by 24%/39% due to RMB1.5bn in one-off expenses.We think BEKE's measures, such as 1) further expansion of agent teams, 2) continuous shift to compensation structure, and 3) reserved attitude on profit-taking in the early recovery stage of property market may continue to refrain its profitability. 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) - Proactive Investment to Drive Better Business Development Prospects...

<ul><li>Beike reported (21 Nov) 3Q24 results: revenue increased 27% YoY to RMB22.6bn, 1.5%/4.7% below Bloomberg consensus/CMBI estimates, mainly due to the mixed performance where existing home GTV (EHT) was dragged by low home transaction sentiment and new home transactions (NHT) were benefited from market share gains.</li><li>Non-GAAP net income was RMB1.8bn, representing a margin of 7.9%, in-line with both our estimates and consensus, thanks to fee controlling measures. We remain positive on Beike given its continuously increasing market share in EHT &amp; NHT businesses and smooth expansion of new business.</li><li>Our SOTP-based target price is lifted to US$23.3 (was US$21.5), including US$22.3 for Beike Core and US$0.9 for Shengdu, translating into 21.4x 2025E PE (non-GAAP). Maintain BUY</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.

Beike reported (21 Nov) 3Q24 results: revenue increased 27% YoY to RMB22.6bn, 1.5%/4.7% below Bloomberg consensus/CMBI estimates, mainly due to the mixed performance where existing home GTV (EHT) was dragged by low home transaction sentiment and new home transactions (NHT) were benefited from market share gains.Non-GAAP net income was RMB1.8bn, representing a margin of 7.9%, in-line with both our estimates and consensus, thanks to fee controlling measures. We remain positive on Beike given its continuously increasing market share in EHT &amp; NHT businesses and smooth expansion of new business.Our SOTP-based target price is lifted to US$23.3 (was US$21.5), including US$22.3 for Beike Core and US$0.9 for Shengdu, translating into 21.4x 2025E PE (non-GAAP). Maintain BUYContent 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) - To Ride on the Policy Tailwind in 4Q

<ul><li>Beike reported (12 Aug) 2Q24 results: revenue increased 20% YoY to RMB23.4bn, and was 9% ahead of both our forecast and Bloomberg consensus estimates, thanks to a beat on GTV of both new home transactions (NHT) and existing home transactions (EHT), and stronger-than-expected expansion of NHT aided by strong industry demand.</li><li>Non-GAAP net income was RMB2.7bn, 48% better than both our estimate and consensus, thanks to a beat on revenue and more optimizedthan-expected operating expense spend.</li><li>We remain constructive on Beike’s market share gains for its core business aided by its well-established infrastructure and nimble business operation capability, and are positive on its new business development prospect. Our SOTP-based target price is fine-tuned to US$21.5 (was US$22.0), including US$20.6 for Beike Core and US$0.9 for Shengdu, translating into 20.8x 2024E PE (non-GAAP). BUY</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.

Beike reported (12 Aug) 2Q24 results: revenue increased 20% YoY to RMB23.4bn, and was 9% ahead of both our forecast and Bloomberg consensus estimates, thanks to a beat on GTV of both new home transactions (NHT) and existing home transactions (EHT), and stronger-than-expected expansion of NHT aided by strong industry demand.Non-GAAP net income was RMB2.7bn, 48% better than both our estimate and consensus, thanks to a beat on revenue and more optimizedthan-expected operating expense spend.We remain constructive on Beike’s market share gains for its core business aided by its well-established infrastructure and nimble business operation capability, and are positive on its new business development prospect. Our SOTP-based target price is fine-tuned to US$21.5 (was US$22.0), including US$20.6 for Beike Core and US$0.9 for Shengdu, translating into 20.8x 2024E PE (non-GAAP). BUYContent 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) - Solid Market Share Gains Amid Uncertain Environment

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)