BEIJING - KE Holdings Inc. (NYSE: BEKE and HKEX: 2423), an integrated online and offline platform for housing transactions and services, announced unaudited financial results for the second quarter ended June 30, 2024.
The company reported a gross transaction value (GTV) of RMB839.0 billion (US$115.5 billion), marking a 7.5% year-over-year increase. Notably, GTV for existing home transactions rose by 25.0%, reaching RMB570.7 billion (US$78.5 billion), while new home transactions saw a decline of 20.2%, totaling RMB235.3 billion (US$32.4 billion).
Net revenues increased by 19.9% year-over-year to RMB23.4 billion (US$3.2 billion), and net income grew to RMB1,900 million (US$262 million).
Adjusted net income, which excludes share-based compensation expenses and other non-GAAP adjustments, was RMB2,693 million (US$371 million).
The company also reported an expansion in its physical footprint, with the number of stores increasing by 6.9% to 45,948 compared to the previous year. Additionally, the number of active stores and agents also saw growth, indicating a strengthening of the company's service network.
Mobile monthly active users averaged 49.7 million in the second quarter, a slight increase from the prior year's 48.0 million, reflecting continued user engagement on the company's platform.
In response to the positive financial results and a robust cash position, KE Holdings has upsized and extended its share repurchase program. The program, initially set to expire on August 31, 2024, has been extended to August 31, 2025, with the authorization increasing from US$2 billion to US$3 billion.
These financial results are based on a press release statement from KE Holdings Inc. and reflect the company's performance in the second quarter of 2024.
The reported figures provide insight into the company's operational and financial status, including details on revenue streams, profitability, and strategic initiatives such as the share repurchase program.
InvestingPro Insights
KE Holdings Inc. (NYSE: BEKE and HKEX: 2423), known for its robust online and offline real estate services, not only showed a solid performance in its recent earnings report but also stands out in several key financial metrics. As of the latest data, the company boasts a Market Cap of approximately $16.94 billion, highlighting its substantial presence in the industry. This is complemented by a Price to Earnings (P/E) Ratio of 35.51, which indicates investor expectations of future earnings growth, albeit at a high earnings multiple.
InvestingPro Tips for KE Holdings suggest that the company is a prominent player in the Real Estate Management & Development industry, trading at a low revenue valuation multiple. This could be particularly interesting for value investors looking for growth potential in the real estate sector. Additionally, the company's strategy of aggressively buying back shares could signal management's confidence in the firm's value, further supported by the fact that it holds more cash than debt on its balance sheet. For those interested in deeper analysis, InvestingPro offers over 10 additional tips on KE Holdings, available at: https://www.investing.com/pro/2423
Despite recent market volatility, KE Holdings' stock price has been known to often move in the opposite direction of the market, which could offer a degree of diversification for investors' portfolios. Moreover, the company's liquid assets exceed its short-term obligations, which is a reassuring sign of financial stability. As the real estate market evolves, KE Holdings' financial health and strategic maneuvers could make it a company to watch for investors and industry analysts alike.
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