Caitong Securities released a research report stating that BEKE-W (02423), as a leading real estate brokerage firm, benefits from economies of scale and management advantages while actively expanding diversified businesses such as home renovation and furnishing (Bekka Home). However, amid the prolonged bottoming-out of the property market, the company faces short-term earnings pressure. The firm adjusted its profit forecasts, projecting adjusted net profits of RMB 5.79 billion, RMB 7.47 billion, and RMB 8.31 billion for 2025–2027, with corresponding P/E ratios of 23.8x, 18.5x, and 16.6x, maintaining a "Buy" rating. Key highlights from Caitong Securities' report include:

**Earnings Update**: On November 10, 2025, BEKE-W reported its Q3 2025 results, with total revenue reaching RMB 23.1 billion (+2.1% YoY) and adjusted net profit at RMB 1.286 billion (-12.8% YoY).

**Stable Transaction Volume, Margin Pressure**: In Q3, the company's total transaction value remained steady at RMB 736.7 billion YoY. Despite revenue growth, gross margin declined to 21.4% (vs. 22.7% YoY), and net margin dropped to 3.2% (vs. 5.2% YoY), leading to lower profitability.

**Diversified Businesses Gain Traction**: Home renovation and furnishing revenue reached RMB 4.3 billion in Q3, with a contribution margin of 32.0% (+0.8 ppts YoY). Meanwhile, rental property management expanded to over 660,000 units, generating RMB 5.73 billion in revenue (+45.3% YoY) and an 8.7% contribution margin (+4.3 ppts YoY).

**AI-Driven Efficiency**: AI optimization in leasing operations improved resource allocation, pricing negotiations, and marketing, boosting efficiency by 13% in property acquisitions and saving over RMB 100 million annually.

**Enhanced Shareholder Returns**: In Q3, the company repurchased approximately $280 million worth of shares (+38.3% YoY), marking the highest quarterly buyback in two years. Year-to-date repurchases totaled $680 million (+15.7% YoY), equivalent to ~3% of total shares outstanding as of end-2024.