CITIC International raised KE's target price to $21.8, expecting a profit recovery this year

Zhao Yin International published a research report predicting that due to the high base effect, KE (02423.HK) will see a year-on-year revenue decline of 28.5% to RMB 22.2 billion in the fourth quarter of last year. After accounting for one-time cost control measures, the forecast for quarterly non-GAAP net profit is RMB 427 million, with a non-GAAP net profit margin expected to reach 1.9%.

However, the bank emphasized its optimism about KE's strong technological capabilities, high-quality service, and mature broker cooperation network, which are expected to expand market share in the housing transaction business. It anticipates that this year the group will implement cost optimization measures for its core property transaction business, along with improvements in new business profitability, which will drive a recovery in earnings. It is expected that the non-GAAP net profit for the entire year will reach RMB 7 billion, representing a year-on-year growth of approximately 42% compared to the forecast of RMB 4.9 billion in 2025. Zhao Yin International raised KE's (BEKE.US) target price for U.S. stocks from $20.7 to $21.8, maintaining a "Buy" rating