KE Holdings Inc - ADR
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+ FollowMarket Cap$20.03B
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Earnings Call Q2 2026
August 21, 2026 - AI Summary
Profit rebound + margin expansion despite falling revenue (core “good” takeaway):
- Q2 2026 GTV +6.3% YoY while revenue -5.7% YoY (revenue pressure from home renovation/furnishing adjustments and revenue recognition impacts from iterative product modeling).
- Non-GAAP net income +74.9% YoY to RMB 3.185bn; non-GAAP net margin 13% (+6% YoY, a three-year high).
- Gross margin +6.7pp YoY to 28.6% and GAAP operating expenses -14.1% YoY (profit growth driven by healthier cost structure + operating efficiency).
Segment performance shows “mix + efficiency” working, not just market help:
- Existing home transaction services: GTV RMB 629.89bn +8% YoY (+17.9% QoQ); contribution margin 46.1% (+6.1pp YoY). Alpha attributed mainly to higher unit productivity in a stable network (connected stores: transaction volume ~+30% YoY; +26% avg transactions per active connected store) and better conversion of platform service value (non-Lianjia platform service revenue +27.8% YoY).
- New home: GTV RMB 258.39bn +1.2% YoY, but profitability improving (contribution margin 28.8% +4.4pp YoY).
- Renovation & furnishing: Revenue RMB 3.19bn -30.1% YoY (exit/adjust inefficient channels; weaker unit economics), but margin +7.5pp YoY to 39.6% due to procurement and cost control (good but with “bad” topline impact).
- Rental services: Revenue RMB 4.83bn -14.8% YoY due to product/accounting shift to lighter “net-basis” model; however managed units >790k (~+34% YoY) and contribution margin 15.3% (+6.9pp YoY).
Cost discipline is paying—watch for quarterly noise (sustainability + outlook):
- GAAP operating profit RMB 3.026bn +185.6% YoY; non-GAAP operating profit +123.6% YoY.
- Expenses fell YoY, but QoQ operating expenses +21.3% due to seasonal home renovation selling and a bad debt provision in new home (~RMB 280m).
- Management said the lower cost baseline should support profit in upcoming quarters under a neutral market, but marketing incentives/frontline sales cost may fluctuate with seasonality and scale—company won’t extrapolate one quarter.
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$51.18
175.6% upside
Current Fair Value
175.6% upsideUndervalued by 175.6% based on the discounted cash flow analysis.
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Share Statistics
| Market cap | $20.03 Billion |
|---|---|
| Enterprise Value | $24.90 Billion |
| Annual dividend | $0.28 |
| Dividend yield | 1.57% |
| Earnings per Share | $2.67 |
| Beta | -0.33 |
| Outstanding Shares | 1,078,398,457 |
Return
| Return on Equity | 7.18% |
|---|---|
| Return on Assets | 4.19% |
| Return on Invested Capital | 7.66% |
Valuation & Multiples
| P/E Ratio | 27.11 |
|---|---|
| PEG | 26.83 |
| Price to Sales | 0.23 |
| Price to Book Ratio | 0.31 |
| Enterprise Value to Revenue | 0.28 |
| Enterprise Value to EBIT | 4.57 |
| Enterprise Value to Net Income | 5 |
| Total Debt to Enterprise | 0.86 |
| Debt to Equity | 0.33 |
Revenue Sources
No data
Last Earnings Call
Report Date
August 25, 2026
EPS Estimate
$0.31
Consensus analyst estimateRevenue Estimate
$3.59 B
Consensus analyst estimateNext Earnings Call
Expected Date
November 10, 2026
EPS Estimate
$0.25
Consensus analyst estimateRevenue Estimate
$3.10 B
Consensus analyst estimateInstitutional Put/Call Ratio
Compares institutional put options with call options. At 0.00, the ratio is below 1, so institutions hold more calls than puts.
| Put/Call Ratio | 0.0000▼ 104.86% |
|---|---|
| Total Calls | -▼ 100.00% |
| Total Puts | -▼ 100.00% |
Institutional Ownership
Holdings and activity of institutional investors.
| Ownership % | 1.46%▼ 10.29% |
|---|---|
| Total Invested | $265.61M▼ 85.77% |
| Investors Holding | 51▼ 184.00% |
About KE Holdings Inc
119,245 employees
CEO: Yongdong Peng
KE Holdings Inc. is a leading Chinese firm managing an expansive digital and physical ecosystem for real estate transactions and associated services. Its business is structured across several key divisions: the buying and selling of prev...