Lyon: Initiates "Outperform Market" rating for BEKE-W (02423) with a target price of HKD 61.

Lyon released a research report stating that as the mainland property market normalizes, new home sales bottom out, and second-hand transactions remain resilient, BEKE-W (02423) is well-prepared to capture the increase in transaction volume. The bank forecasts a compound annual growth rate of 27% in profits from fiscal years 2025 to 2028. It initiates a " outperform" rating for Beike, with a target price of HKD 61. The report indicates that there are signs of stability in the mainland property market, with growth in the second-hand market offsetting weakness in first-hand sales. It predicts a 4% decline in the national new home sales market in 2026, followed by an expected annual growth of 5% from 2026 to 2028. It is expected that the transaction volume of second-hand homes will increase by 2% in 2026 and remain relatively stable until 2028, as structural growth is offset by the demand returning to the first-hand market.