I'm LongbridgeAI, I can summarize articles.CICC reported that KE Holdings' Q2 adjusted net profit surged 75% to RMB3.19 billion, beating forecasts due to cost optimization. While revenue fell 5.7%, the broker raised 2026/2027 profit forecasts by ~20-27% but lowered revenue estimates slightly. CICC maintained its 'Outperform' rating and USD27 target price, citing continued share buybacks and operating leverage despite industry stabilization challenges.
CICC issued a report saying that KE Holdings Inc (BEKE.US) 's 2Q revenue fell 5.7% YoY to RMB24.54 billion, in line with market expectations. Adjusted net profit surged 74.9% YoY to nearly RMB3.19 billion, significantly beating market expectations, mainly benefiting from better-than-expected optimization in costs and expenses. Since launching its share repurchase program in August 2022, the company had cumulatively repurchased shares worth about USD2.99 billion as of the end of 2Q26. In 2Q26 alone, the company repurchased about USD250 million of shares and conducted share buybacks in the Hong Kong stock market for the first time.
Given the continued impact from strategic adjustments in the home renovation business, the broker lowered its 2026 and 2027 revenue forecasts by 5.1% and 6% to RMB85.7 billion and RMB86.5 billion, respectively. Due to better-than-expected cost control and operating leverage, it raised its 2026 and 2027 adjusted attributable net profit forecasts by 26.6% and 19.2% to RMB9.36 billion and RMB9.92 billion, respectively. The broker maintained its Outperform rating. As the industry is still in the process of stabilizing and sector valuation multiples have yet to be re-rated, the broker conservatively maintained the target price for KE Holdings Inc at USD27, equivalent to 23x 2026 non-GAAP P/E ratio.(da/u)(Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)