---
title: "CITIC International expects BEKE-W's profits to recover this year, raising the target price to $23"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/279522949.md"
description: "CMB International expects BEKE-W's profits to recover this year, raising the target price to $23. Although revenue fell by 28.7% in the fourth quarter of last year, it is anticipated that the core housing transaction business will drive profit recovery in 2026. The first-quarter revenue forecast is RMB 18.7 billion, a decrease of 20%, but the operating profit decline is only 2%. Facing demand uncertainty and high inventory challenges, the \"Buy\" rating is maintained"
datetime: "2026-03-18T02:40:58.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/279522949.md)
  - [en](https://longbridge.com/en/news/279522949.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/279522949.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/279522949.md) | [繁體中文](https://longbridge.com/zh-HK/news/279522949.md)


# CITIC International expects BEKE-W's profits to recover this year, raising the target price to $23

CMB International published a research report, stating that BEKE-W (02423.HK) had a revenue of RMB 22.2 billion in the fourth quarter of last year, a year-on-year decrease of 28.7%, in line with market consensus and the bank's forecast. Regarding the outlook and forecast for 2026, the bank expects that the cost optimization measures in BEKE's core housing transaction business and the improvement in profitability of new businesses will jointly drive the recovery of profits in 2026. During this period, the net profit forecast under non-GAAP remains unchanged at RMB 7 billion, implying a year-on-year growth of 39%. The total operating expenses under non-GAAP are expected to be RMB 14 billion, a year-on-year decrease of 14%.

For the outlook of the first quarter of this year, the bank predicts that the group's total revenue will be RMB 18.7 billion, a year-on-year decrease of 20%. The total transaction volume (GTV) for existing home transactions and new home transactions is expected to decrease by 10% and 39% year-on-year, respectively. However, the non-GAAP operating profit is expected to be RMB 1.1 billion, a year-on-year decrease of only 2%, corresponding to a non-GAAP operating profit margin of 6% (compared to 4.9% in the same period last year).

CMB International raised the target price for BEKE (BEKE.US) in the U.S. stock market by 6%, from $21.8 to $23, based on the sum-of-the-parts valuation method (SOTP); maintaining a "Buy" rating.

The bank also believes that the group still faces challenges for a full rebound, as the demand side continues to be suppressed by income uncertainty, concerns about further declines in housing prices, and risks associated with the delivery of pre-sold homes. On the supply side, the high inventory of unsold properties (4.38 million square meters as of the end of February) requires a long digestion period, while the real estate development investment willingness index (REI) has widened its decline, reflecting developers' continued cautious attitude

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