| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 0.70 | -97 |
| Intrinsic value (DCF) | 6475.00 | 32162 |
| Graham-Dodd Method | 5.50 | -73 |
| Graham Formula | 13.80 | -31 |
KE Holdings Inc. (NYSE: BEKE) is a leading integrated online and offline platform for housing transactions and services in China, operating under the Beike and Lianjia brands. The company provides a comprehensive ecosystem for real estate services, including existing and new home transactions, home renovation, and furnishing, as well as emerging services like SaaS solutions for brokers. With a strong presence in China's real estate market, BEKE leverages its proprietary Agent Cooperation Network (ACN) to enhance collaboration among service providers, ensuring efficiency and transparency. The company's technology-driven platform, combined with its extensive offline brokerage network, positions it as a key player in China's rapidly evolving real estate sector. BEKE's diversified revenue streams and strong brand recognition make it a dominant force in the industry, catering to both buyers and sellers while adapting to regulatory and market shifts.
KE Holdings Inc. (BEKE) presents a compelling investment case due to its dominant position in China's real estate services market, supported by a scalable platform and strong cash flow generation. The company's revenue diversification across existing and new home transactions, as well as home renovation services, mitigates cyclical risks. However, BEKE faces regulatory risks in China's real estate sector, including government policies aimed at curbing speculation and stabilizing housing prices. The company's negative beta (-0.725) suggests low correlation with broader market movements, which may appeal to risk-averse investors. With a solid balance sheet (CNY 11.4B cash) and positive net income (CNY 4.06B in FY 2023), BEKE is well-positioned for long-term growth, though investors should monitor macroeconomic conditions and regulatory developments in China.
KE Holdings Inc. (BEKE) holds a competitive advantage in China's real estate services market through its integrated platform, combining online technology with an extensive offline brokerage network (Lianjia). The company's proprietary Agent Cooperation Network (ACN) fosters collaboration among agents, improving transaction efficiency and customer satisfaction. BEKE's strong brand recognition and data-driven approach differentiate it from traditional brokers, enabling better pricing accuracy and service quality. However, competition is intensifying with digital-first players and traditional brokers expanding their tech capabilities. BEKE's scale and first-mover advantage in platform integration provide a moat, but regulatory scrutiny on commission structures and anti-monopoly policies could pressure margins. The company's ability to adapt to policy changes while maintaining agent loyalty will be critical. Additionally, BEKE's expansion into home renovation and SaaS services diversifies revenue but faces competition from specialized players in those segments.