【True Insight Hong Kong Stock Market Trends】BeiKe (02423.HK) reported a net income of 22.6 billion yuan in the third quarter of 2024, with a total transaction volume of 736.8 billion yuan. The proportion of non-real estate transaction service income rose to 38.3%, reaching a record high.
Zhenzhuo Finance News, November 21, 2024 - Technology-driven one-stop new living service platform Beike Holdings Limited (02423.HK) $BEKE-W(02423.HK) announced its third-quarter results for the period ending September 30, 2024. In the third quarter, Beike demonstrated sustainable growth momentum, achieving a total transaction volume of 736.8 billion yuan (RMB, same below), a year-on-year increase of 12.5%; net revenue reached 22.6 billion yuan, up 26.8% year-on-year. Net profit for the third quarter was 1.168 billion yuan, with adjusted net profit at 1.782 billion yuan, exceeding market consensus expectations.
The "One Body, Three Wings" strategy continued to develop steadily. In the third quarter, revenue from non-real estate transaction services grew 54.3% year-on-year, accounting for 38.3% of total revenue, a record high.
With a robust cash reserve, the company continued to reward shareholders. During the reporting period, Beike spent approximately $200 million on share repurchases. From the beginning of the year to the end of the third quarter, the company repurchased shares worth about $580 million. Since the launch of the repurchase program in September 2022, Beike has cumulatively repurchased approximately $1.49 billion worth of shares by the end of September, representing about 8.1% of the company's total shares outstanding before the program began.
Market Recovery Under Policy Support: New Home Business Performance Significantly Outperforms the Market
After a series of policies were introduced in May, leading to a pulse-like recovery, the market gradually entered a phase of adjustment. In the third quarter, the secondary housing market remained relatively stable, with transaction volumes higher than the same period last year.
In the third quarter, the company's existing home business achieved a total transaction volume of 477.8 billion yuan, up 8.8% year-on-year, with net revenue of 6.2 billion yuan and a contribution margin of 41%.
In the new home business, the company continued to significantly outperform the market, achieving a total transaction volume of 227.6 billion yuan, up 18.4% year-on-year, with net revenue of 7.7 billion yuan, a 30.9% year-on-year increase, and a contribution margin of 24.8%. The strong performance of the new home business was mainly due to the deepening cooperation with developers and the company's strong operational capabilities.
By the end of the third quarter, the number of active stores on the Beike platform reached nearly 46,900, a 14.6% year-on-year increase, with a net addition of nearly 6,000 stores. The number of active agents reached approximately 423,000, up 6.1% year-on-year.
At the end of September, central and local governments introduced a series of policies to support the real estate market, combined with monetary policy and other macroeconomic measures, which boosted transaction activity and stabilized the market. After these policies, transaction volumes in first-, second-, and third-tier cities showed significant growth.
Home Renovation and Rental Services Maintain Rapid Growth; "Beihaojia" Launches First Independent Project
During the reporting period, non-real estate transaction services accounted for 38.3% of total revenue, up 6.8 percentage points year-on-year. The home renovation business achieved a contract value of 4.1 billion yuan in the third quarter, up 24.6% year-on-year, with net revenue of 4.2 billion yuan, a 32.6% year-on-year increase, and a contribution margin of 31.2%, improving from the same period last year.
The rental business continued to grow rapidly, with net revenue of 3.9 billion yuan, up 118.4% year-on-year, mainly due to the continuous increase in managed rental units. By the end of September, the "Worry-Free Lease" distributed rental housing management service had over 360,000 units under management, compared to 160,000 units in the same period last year.
In September, Beike's "Beihaojia" business made a breakthrough by successfully bidding for a prime plot in Chengdu, which will be developed as its first independent project. Notably, "Beihaojia" is positioned as a "data-driven residential development service platform" rather than a real estate developer.
Peng Yongdong, Co-Founder, Chairman, and CEO of Beike, said: "Against the backdrop of market adjustments, all business lines have achieved good results. We are actively expanding growth in real estate transaction services while building a more harmonious ecosystem. Through mechanisms like the 'Store Points System,' we help store owners achieve better returns and increase their satisfaction with the platform. In this market cycle, we are increasingly convinced of the power of 'long-term thinking.'"
Xu Tao, Executive Director and CFO of Beike, said: "In the third quarter, we continued to demonstrate sustainable growth momentum. Our real estate transaction services delivered steady revenue performance, and the monetization capability of the new home business further improved. We are actively advancing the 'One Body, Three Wings' strategy, with home renovation, rental services, and emerging businesses accounting for 38.3% of net revenue in the third quarter. At the same time, we continue to reward shareholders who have grown with the company and share the benefits of our development with investors."
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