Strong Execution Amid New Phase of Sector Developments

Research evidence excerpt

Strong Execution Amid New Phase of Sector Developments

China (PRC) | Internet

KE Holdings EquityMayResearch20, 2026

TARGET CHANGEStrong Execution Amid New Phase of Sector

RATING BUYDevelopments

PRICE $17.80^

BEKE reported 1Q results (link) with non-GAAP earnings beat expectations.

During conference call, management highlights existing home sentiment PRICE TARGET | % TO PT $22.00 ($19.00) | +24%

in 1Q is different vs prior years considering volume, pricing and supply. 52W HIGH-LOW $20.98 - $14.40

It embraces industry trends facilitating customers in decision-making FLOAT (%) | ADV MM (USD) 97.1% | 75.96

process with improvement in efficiencies, productivity and services. MARKET CAP $19.4B

Professional service is provided in whole process. BEKE is committed in TICKER BEKE ^Prior trading day's closing price unless otherwise

shareholders return. Maintain Buy noted.

1Q26 results highlights: Total revenue declined 19% YoY to RMB18.9bn, 1.1% and 2.1% ahead FY (Dec) CHANGE TO JEFe JEF vs CONS

of consensus and our estimates respectively. By segment, GTV for existing homes declined 2026 2027 2026 2027

7.9% YoY (vs consensus and our estimates of 12% and 12.8% YoY decline respectively) REV +1% NA NA NA

to RMB534bn and revenue declined 11% YoY (vs our estimate of 16.9% YoY decline) to

EPS NA NA NA NA

RMB6.1bn. GTV for new homes declined by 37.2% YoY (vs consensus and our estimate of

39.8% and 40% YoY decline respectively) to RMB146bn and revenue declined by 37% YoY (vs

our estimate of 40% YoY decline) to RMB5.1bn. Revenue for home renovation and furnishing

declined by 20.6% YoY (vs our estimate at 12% YoY decline) to RMB2.3bn (vs our estimate at

RMB2.6bn). Revenue for home rental services declined by 1.5% YoY (vs our estimate at 4%

YoY decline) to RMB5bn.