HK Stock Market Move | BEKE-W (02423) rose more than 5% again, with second-quarter performance exceeding expectations. Citigroup is optimistic about further upward revisions of profits in the third and fourth quarters.

BEKE-W (02423) has risen over 5%, currently up 5.42% to HKD 48.2, with a trading volume of HKD 360 million. In terms of news, Beike recently released its earnings report, achieving a net income of 24.5 billion yuan in the second quarter, with an adjusted operating profit of 3.59 billion yuan and an adjusted operating profit margin of 14.6%, an increase of 8.5 percentage points year-on-year. The transaction volume of second-hand houses on the Beike platform increased by 25% year-on-year, and the company's overall GTV reached 933.8 billion yuan, a year-on-year increase of 6.3%, marking the first rise in a year. Citigroup published a research report stating that Beike's second-quarter profit exceeded expectations, highlighting the company's strong operating leverage and the profitability embedded in its platform model. Looking ahead to the third and fourth quarters, the bank considers Beike's cautious guidance, the low base from last year's third quarter, and recent policy support; unless there is a one-time asset impairment in the fourth quarter, it expects the company's profits will be further revised upwards driven by GTV growth. Furthermore, Beike is expanding its business into housing and residential decision-making to strengthen its long-term competitive advantage and sustainable growth.