# KE Holdings (BEKE) Sector: Real estate services platform | Field | Value | |---|---| | Price | $17.65 | | Market cap | $20B | | Intrinsic value source | Analysts | | Data as of | 2026-11-13 | | Next earnings | 2026-11-16 (confirmed) | Analysts: Very bullish Picks: Research only Discount category: Close to intrinsic value ## In short The market doubts the Chinese housing market and the VIE structure of KE Holdings, and steady profit gains with continued buybacks through 2027 can lift its value. ## Themes and gap - Themes: China and geopolitics (china-geopolitics), Weak consumer (weak-consumer) - Gap type: Slow (slow) - Why: The Q3 2026 report on November 16, 2026 is the next test, but a recovery of the Chinese housing market and a higher multiple for a company in China take several years. ## About KE Holdings Inc. (Beike) is based in Beijing, China. It runs an integrated online and offline platform for housing transactions and services. It earns revenue from existing home and new home transactions, home renovation and furnishing, home rental services and other services. It runs the Lianjia brand stores and connects other brokerage stores and agents to its platform. Gross transaction value was RMB933.8 billion in Q2 2026, and net revenues were RMB24.5 billion. It had 60,274 stores and 540,634 agents at June 30, 2026. The American Depositary Shares (ADSs) trade on the NYSE in US dollars, and each ADS represents three Class A ordinary shares. The Class A shares also trade in Hong Kong. KE Holdings reports in RMB. It files a 20-F each year and furnishes quarterly results on Form 6-K. ## Thesis The price of KE Holdings depends on the Chinese housing market and on whether its lower costs can keep profits up while revenue falls. In Q2 2026 net revenues fell 5.7%, but gross margin rose to 28.6% from 21.9% and income from operations rose to RMB3,026 million from RMB1,059 million. Cash, cash equivalents, restricted cash and short-term investments were RMB56.0 billion at June 30, 2026, and the company buys back shares. For the price to rise, three things must be true. Existing home sales in China must keep growing, after their gross transaction value grew 8.0% in Q2 2026. The higher contribution margins must hold while the company invests in AI and service quality. New home sales, which depend on developers with weak finances, must not fall further. The Q3 2026 report on November 16, 2026 is the next test. Because of the risk of China and the VIE structure, the market can keep a low multiple even if profits rise. ## Checkpoints - Nov 16, 2026: Q3 2026 results. Status: Pending. Watch: Gross margin stays near the 28.6% of Q2 2026 and the gross transaction value of existing homes grows, and this passes; a lower margin or a fall in existing home volume fails. - Mar 17, 2027 (estimate): Q4 2026 results and capital return. Status: Pending. Watch: Income from operations for 2026 is well above the RMB2,111 million of 2025 and buybacks continue, and this passes; a fall in profit in the second half fails. ## Balance sheet - Cash: CN¥47.0B - Debt: CN¥277M - Net cash: CN¥46.7B At June 30, 2026, KE Holdings had cash and cash equivalents of RMB7,387 million and short-term investments of RMB39,586 million, which is RMB46,973 million in the figures. Restricted cash was RMB9,039 million, and customer deposits payable were RMB5,685 million. Long-term investments were RMB19,586 million. Borrowings were RMB277 million, and loans from related parties were RMB1,448 million. Lease liabilities, mainly for the rental business, were RMB12,663 million. Through June 30, 2026, the company had bought back about 185.4 million ADSs for about $2,967.7 million under its program of up to $5 billion. As of 2026-06-30. Sources: - https://www.sec.gov/Archives/edgar/data/1809587/000110465926100295/tm2623857d1_ex99-1.htm - https://www.sec.gov/Archives/edgar/data/1809587/000110465926122940/tm2628991d1_ex99-2.htm ## Dividends - Dividend yield: 1.6% (last 12 months, at the current price) - Paid per share, last 12 months: $0.276 (1 payment) - Current annual rate: $0.276 ($0.276 x 1 a year) - Latest ex-dividend date: 2026-04-08, $0.276 per share Dividends per share by year: 2016: $0.00, 2017: $0.00, 2018: $0.00, 2019: $0.00, 2020: $0.00, 2021: $0.00, 2022: $0.00, 2023: $0.171, 2024: $0.351, 2025: $0.36. Source: company filings and market data, read on 2026-11-12. ## Recent events - 2026-11-05: KE Holdings said that it will report Q3 2026 results on November 16, 2026. - 2026-11-04: The monthly return to the Hong Kong exchange showed that issued Class A shares fell by 18,469,584 in October 2026 to 3,282,388,526, and Class B shares fell by 754,837 to 134,148,325. - 2026-08-21: KE Holdings reported Q2 2026 results. Gross transaction value rose 6.3% to RMB933.8 billion, net revenues fell 5.7% to RMB24.5 billion and net income rose to RMB2,624 million from RMB1,307 million. It bought back about $250 million of shares in the quarter and made its first buybacks in Hong Kong. - 2026-06-12: Shareholders renewed the general mandate for share repurchases at the annual general meeting. The program allows repurchases of up to $5 billion until August 31, 2028. ## Latest news and filings - Next earnings: 2026-11-16 (confirmed by the company) | Filed | Form | Headline | Period end | XBRL document | Link | | --- | --- | --- | --- | --- | --- | | 2026-04-24 | 20-F | Annual report for the period ended Dec 31, 2025 | 2025-12-31 | beke-20251231x20f | https://www.sec.gov/Archives/edgar/data/1809587/000110465926048109/beke-20251231x20f.htm | | 2025-04-17 | 20-F | Annual report for the period ended Dec 31, 2024 | 2024-12-31 | beke-20241231x20f | https://www.sec.gov/Archives/edgar/data/1809587/000141057825000783/beke-20241231x20f.htm | Every filing on SEC EDGAR (CIK 1809587): https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001809587&type=&dateb=&owner=include&count=40 ## Risks - High: The Chinese housing market is weak. Net revenues fell 5.7% in Q2 2026, and the gross transaction value of new homes grew only 1.2%. Lower prices and fewer sales cut commissions. - High: KE Holdings is a Cayman Islands company that controls part of its business in China through VIE contracts. Chinese rules on such structures, on data and on listings abroad can change, and US rules can affect the listing of the ADSs. - Medium: New home revenue depends on developers, and many of them have weak finances. Accounts receivable and contract assets were RMB4,929 million at June 30, 2026, net of an allowance for credit losses of RMB1,791 million. - Medium: The home rental business leases homes. Lease liabilities were RMB12,663 million at June 30, 2026, and lower rents or empty homes can cause losses. - Medium: Agent numbers fell. Active agents were 454,571 at June 30, 2026, 7.5% fewer than a year before. ## Links - Page: https://picks.utilarium.app/company/BEKE/ - History of changes: https://picks.utilarium.app/company/BEKE/history/ - JSON with full history: https://picks.utilarium.app/data/company/BEKE.json > Picks is a personal record of stock picks. It gives general opinions about stocks, including a "Top pick" label. They are not tailored to your needs, goals or risk tolerance. Kevin is not a registered adviser and relies on the general-advice exemption in Canadian securities law (NI 31-103 s.8.25). Do your own research, or ask a registered adviser. Kevin may hold any stock on this site. Prices, intrinsic values and ratings can be delayed or wrong; check the original source. Full disclaimer: /disclaimer/.