HK Stock Market Move | BEKE-W(02423) rose more than 10% during the trading day and was included in the Hang Seng China Enterprises Index. Institutions are optimistic about the company's cost optimization in the real estate transaction business.

BEKE-W (02423) rose more than 10% during trading hours, closing at 9.36% higher at HK$48.14, with a trading volume of HK$3.19 billion. On the news front, on February 13, Hang Seng Index Company announced the quarterly review results of the Hang Seng Index series up to December 31, 2025, with BEKE-W and other constituent stocks added to the Hang Seng H-Share Index ETF index. The changes will be implemented after the market closes on March 6, 2026 (Friday) and will take effect from March 9, 2026 (Monday). CMB International released a research report predicting that due to the high base effect, BEKE-W's fourth-quarter revenue last year is expected to drop by 28.5% year-on-year to RMB 22.2 billion. After considering one-off cost control measures, the forecasted non-GAAP net profit for the quarter is expected to be RMB 427 million, and the non-GAAP net profit margin is expected to reach 1.9%. However, the bank emphasized that it remains optimistic about Beike's strong technical capabilities, high-quality service, and mature broker partnership network. It is expected to expand market share in the real estate trading business and implement cost optimization measures for the core real estate trading business in 2026. Additionally, improved profitability from new business is expected to drive profit recovery, with projected full-year non-GAAP net profit reaching RMB 7 billion in 2026, an increase of approximately 42% compared to the forecast for 2025.