Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 21 Feb, 25 | BEKE | Buy | USD 20.22 | USD 23.26 | USD 25.3 | 3 days | 25.1% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
KE Holdings Inc., through its subsidiaries, engages in operating an integrated online and offline platform for housing transactions and services in the People's Republic of China. It operates through four segments: Existing Home Transaction Services, New Home Transaction Services, Home Renovation and Furnishing, and Emerging and Other Services. The company operates Beike, an integrated online and offline platform for housing transactions and services; Lianjia, a real estate brokerage branded store; Agent Cooperation Network, an operating system that fosters reciprocity and bonding among various service providers; and software-as-a-service systems. It also owns the Deyou brand for connected brokerage stores; and other brands. In addition, the company offers contract, secure payment, escrow, and other services. KE Holdings Inc. was founded in 2001 and is headquartered in Beijing, the People's Republic of China.
Home Rental Expansion: Net revenues from home rental services grew by a massive 118.4% year-over-year to RMB3.9 billion (US$0.6 billion), showing strong demand and success in this segment.
Revenue Growth: Net revenues increased by 26.8% year-over-year, reaching RMB22.6 billion (US$3.2 billion) in Q3 2024, driven by strong performance in new home transactions and home renovation services.
Reduced Mobile MAU: Mobile monthly active users (MAU) decreased from 49.2 million in Q3 2023 to 46.2 million in Q3 2024, suggesting a decline in platform engagement.
Declining Operating Margin: Operating margin dropped from 5.1% in Q3 2023 to 3.2% in Q3 2024, indicating increased operational costs and reduced profitability.
Key investment risks for the company include potential volatility in China's real estate market, regulatory changes impacting housing transactions, declining mobile user engagement, and margin pressures from rising operational costs.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 20.22 | 16.0 | 23.26 | 25.3 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Price Action Analysis (on the daily chart)
BEKE's stock price is consolidating above a descending trendline, indicating the potential for near-term upward momentum. This situation suggests that the stock may continue to rise. A significant resistance level of USD 19.41 is approaching, which prices could reach in the short term (2-4 weeks). Additionally, a breakout above USD 19.41 could attract increased buying interest in the stock.
Technical Indicators Analysis (On the daily chart)
On the daily chart, the leading indicator, the 14-period Relative Strength Index (RSI), is currently positioned above the midpoint but could indicate an upward movement soon. Additionally, trading volumes appear to support a potential rise. Furthermore, prices are trading above the trend-following indicators, specifically the 21- simple moving average (SMA), further supporting positive bias.
As per the above-mentioned price action and technical indicators analysis, KE Holdings Inc (NYSE: BEKE) is looking technically well-placed on the chart, and a ‘Buy’ recommendation has been given on the stock.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Real Estate Industry: Real Estate Services
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| BEKE Ke Holdings Inc |
0.32 1.59% | 20.41 | 42.90 | 16.92 | 0.33 | 2.33 | 1.66 | 24.07 |
| MSGNF Man Sang International Limited |
- -% | 0.01 | - | - | 844.75 | 3.95 | 3.76 | -1.3608 |
| CBRE CBRE Group Inc Class A |
-0.01 0.0076% | 130.77 | 44.43 | 25.91 | 1.22 | 4.85 | 1.40 | 24.55 |
| CSGP CoStar Group Inc |
-0.09 0.11% | 79.14 | 115.64 | 227.27 | 15.03 | 5.03 | 13.36 | 84.12 |
| CLLNY Cellnex Telecom S.A |
0.17 0.95% | 18.04 | - | 147.06 | 7.53 | 1.81 | 13.65 | 18.14 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is February 20,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
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