The analyst rating for BEKE-W (02423.HK) is an "Outperform" due to several key factors. Despite the company reporting an adjusted net profit for 4Q25 that was 35% below market expectations, the broker, Daiwa, believes that the one-off severance costs from aggressive layoffs of Lianjia agents will ultimately benefit BEKE's cost structure. They anticipate that cost savings from workforce optimization and improved profitability in the residential leasing business will support margin expansion in 2026. Additionally, the broker raised its EPS forecasts for 2026 and 2027 by 7-13%, reflecting stronger cost savings expected in 2026. Consequently, they lifted the target price from HKD46 to HKD51.
