KE Holdings Stock Surges on Earnings Beat

BEIJING – KE Holdings Inc. reported impressive second quarter earnings and revenue that exceeded analyst expectations, resulting in a 3.3% increase in shares during early trading on Monday.

The Chinese real estate platform, catering to both online and offline markets, announced adjusted earnings per share of $2.28, significantly outperforming the consensus estimate of $1.60. Revenue soared by 19.9% year-over-year to RMB23.4 billion ($3.2 billion), surpassing the anticipated RMB22.04 billion.

Strong performance from KE Holdings was primarily fueled by growth in existing home transaction services, alongside the expansion of its home renovation and rental businesses. Net revenues from existing home transactions grew 14.3% year-over-year to RMB7.3 billion ($1.0 billion), while revenues from home renovation and furnishing experienced a remarkable increase of 53.9%, reaching RMB4.0 billion ($0.6 billion).

"In the second quarter of this year, our series of operational enhancements and scientific management measures supported us in achieving high-quality results that notably exceeded the market performance," commented Stanley Yongdong Peng, Chairman and CEO of KE Holdings.

The company’s gross transaction value (GTV) climbed 7.5% year-over-year to RMB839.0 billion ($115.5 billion), driven by a 25% rise in GTV for existing home transactions. However, GTV for new home transactions fell by 20.2% due to a sluggish market environment.

KE Holdings maintains a robust balance sheet, with cash and short-term investments totaling RMB59.7 billion ($8.2 billion) as of June 30. The company also announced an increase in its share repurchase program, raising it from $2 billion to $3 billion and extending the program through August 2025.

This article was generated with the support of AI and reviewed by an editor.