Citi: Raises the target price for BEKE-W (02423) to HKD 75.4, reiterates as a top pick.

Citi released a research report stating that BEKE-W (02423) reported Q2 profits that exceeded expectations, highlighting the company's positive operational leverage and the profitability inherent in its platform model. The firm indicated that, given the recovery in transactions in key cities where KE Holdings, Inc. Sponsored ADR Class A operates, it reaffirmed the company as a preferred stock, raising the target price for H shares from HKD 73.6 to HKD 75.4, while the target price for KE Holdings, Inc. Sponsored ADR Class A (BEKE.US) in the U.S. stock market has been raised from USD 26.4 to USD 26.6, maintaining a "Buy" rating. Looking ahead to Q3 and Q4, the firm considers KE Holdings, Inc. Sponsored ADR Class A's cautious guidance, last year's low base in Q3, and recent policy support. Unless there is a one-time asset impairment in Q4, it expects profits to be further revised upwards, driven by GTV growth. Additionally, KE Holdings, Inc. Sponsored ADR Class A is expanding its business into housing and residential decision-making, thereby strengthening its long-term competitive advantage and sustainable growth.