Dahua Jixian: Downgrade Ke Holdings (02423.HK) rating to "hold" with a target price lowered to HK$39.

According to the Wise Finance APP, Dahua Jixian released a research report stating that Beike-W (02423.HK) recorded a 2% year-on-year increase in third-quarter revenue to 23.1 billion yuan. This figure meets the bank's and market expectations. The non-GAAP net profit decreased by 28% year-on-year to 1.3 billion yuan, which performed better than expected. The non-GAAP net profit margin narrowed by 2 percentage points year-on-year to 5.6%. The bank expects the company's fourth-quarter adjusted net profit to decrease by 18% to 1.1 billion yuan, and also lowered the fourth-quarter and 2026 revenue forecast by 25% and 18%, as well as the fourth-quarter and 2025 non-GAAP net profit forecast by 46% and 13%. The report indicates that the company expects fourth-quarter revenue to decline by 29% to 22 billion yuan in 2025, showing weak performance and below the market forecast by 25%. The rating was downgraded to hold, with the target price lowered from 60 HKD to 39 HKD.