Beike-W (02423.HK) fell nearly 4%, down 3.6% at the time of writing, trading at HK$34.85 with a turnover of HK$66.4055 million.$BEKE-W(02423.HK)

Kaiyuan Securities pointed out that in the new housing market, the average transaction area of commercial housing in 30 major cities across the country fell 45.2% month-on-month in the past two weeks, seasonally at a historical low for the same period. The transaction area in first-tier cities fell back to a historical low. In the secondary housing market, in terms of prices, as of July 8, the index of listing prices for second-hand homes continued to decline; in terms of transaction volume, the transaction area of second-hand homes in 13 cities remained at a historically high level for the same period in the past two weeks.

Goldman Sachs released a research report stating that it expects Beike's revenue in the second quarter to increase 13% year-on-year to RMB 22 billion, with gross transaction volume (GTV) rising 4% to RMB 810 billion, and non-GAAP net profit falling 8% to RMB 2.2 billion. The bank believes that the group's growth will accelerate in the second half of the year, with GTV, revenue, and net profit expected to increase by 23%, 27%, and 36%, respectively. It is expected that other business revenues, including rentals, renovations, and decoration, will account for one-third of total revenue for the full year and increase to 40% by 2026. The bank also expects the group to continue share buybacks this year to achieve a net return to shareholders of no less than 5%.

Personal interpretation: As an internet-savvy real estate agency, Beike is facing adjustments in certain aspects of the current real estate market, with overall performance remaining relatively weak. Beike's main attempt now is to place hope on business diversification and market strategy adjustments to achieve steady growth. Whether this can be sustained depends on the continued growth of new businesses, which warrants further observation.