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

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Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

Equity Bottom-Up

<ul>
<li>Beike's (BEKE) C1Q25 rev. beat our est./cons. by 4.6%/4.0% and non-GAAP NI beat est./cons. by 18%/25%, due to scale effect and cost savings;</li>
<li>The near-term negative is that US-China trade truce reducing the possibility of large-scale stimulus on real estate. The near-term positive is margin expansion. </li>
<li>We keep rating and TP unchanged. We see the US$1.2bn (5.0% market value) shareholder return commitment in 2025 as a major positive.</li>
</ul>


Beike's (BEKE) C1Q25 rev. beat our est./cons. by 4.6%/4.0% and non-GAAP NI beat est./cons. by 18%/25%, due to scale effect and cost savings;
The near-term negative is that US-China trade truce reducing the possibility of large-scale stimulus on real estate. The near-term positive is margin expansion. 
We keep rating and TP unchanged. We see the US$1.2bn (5.0% market value) shareholder return commitment in 2025 as a major positive.


[KE Holdings (BEKE US, BUY, TP US$25) Review]: Margin Expansion and SH Return Vs. Lack of Stimulus