$BEKE-W(02423.HK)Where is the imagination space for Beike?

If Beike can become a full-lifecycle service provider for Chinese residential housing, its market potential is indeed huge. Beike has already made multi-faceted layouts in the residential industry chain, including operating through self-owned Lianjia stores and franchise brand Deyou in multiple cities, collecting commissions from existing and new home transactions, and using an online-offline hybrid model to attract customers. Additionally, Beike is expanding into home decoration, rental services, and real estate development, attempting to penetrate the upstream industry chain through a C2M product model.

Beike's financial performance also demonstrates its stable position in the market. In the first half of 2024, Beike achieved HKD 42.9 billion in operating revenue and HKD 2.508 billion in net profit, with an operating net margin of 5.34%. These figures indicate that Beike has strong profitability and financial health in the market.

However, Beike faces practical challenges in real estate development, such as investment operations, financing, and sales, which pose obstacles to becoming a full-lifecycle service provider. Despite this, Beike has strengthened its market competitiveness through strategic partnerships with other companies, such as collaborating with Oriental Yuhong in professional standardized services like waterproof repairs and tile laying.

In summary, if Beike can successfully achieve its goal of becoming a full-lifecycle service provider for residential housing, its market potential will be vast, but it also needs to overcome challenges in development and operations.