On August 25, BEKE-W declined 3.19% in regular trading, trading at HKD 45.5/share, with turnover of HKD 126 million. The stock retreated after surging over 3.5% in the prior session following better-than-expected Q2 results and multiple broker upgrades.

The pullback reflects profit-taking and market debate over the sustainability of the company's growth model. While Q2 adjusted net profit surged 74.9% year-over-year to RMB 3.185 billion and gross margin reached a three-year high of 28.6%, total revenue declined 5.7% in the quarter. The profit expansion was primarily driven by aggressive cost reduction — including store closures, headcount optimization, and expense cuts — rather than top-line growth. Operating costs fell 13.7% year-over-year in Q2, with store costs down 25.9% and home renovation costs down 37.8%. Market participants expressed divergent views on whether this revenue-declining, profit-growing pattern can be sustained, prompting near-term capital rotation following the post-earnings rally.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)