KE Holdings (BEKE), is China’s largest property technology company. The company has facilitated property transactions and add on services like financing for approximately two decades, however, it went public in august 2020, launching its IPO at $20 per stock.
KE Holdings Inc opened at NYSE for $35 per share, $15 higher than its previous IPO. Since the launch, the share price has surged to a maximum of $79.40, depicting a 127% gain. Currently, the stock is set at $57 per share, valuing the company at $66.67B.
BEKE’s Whopping Financials Has Peaked Potential Investments.
In the third quarter of 2020, BEKE produced a gross transaction value of $154 billion, depicting an 87% increase year over year.The company Net profit margins went up by an impressive 211% to 1.9 billion yuan, surged by greater revenue and operating leverage.
All three of BEKE’s business divisions, increased in revenue from current house transactions, new house transactions, and miscellaneous services rising 46%, 95%, and 117% year over year, respectively.
Since the last two years, BEKE has tripled the number of agents associated with the company and is also currently set for expansion of its ancillary services options, including several financial products and building renovations. This should produce higher profit margins and complement BEKE’s fundamental business model. This will also help in the diversification ofBEKE’sincome stream, providing a gigantic financial surplus for the company.
In 2019 BEKE facilitated about 2.1 trillion yuan or 9% of all real estate transactions, making it China’s biggest property technology company. Providing a platform to match home buyers with real estate agents and brokers, as well as providing financial add-on services has proven to be extremely significant in increasing the company’s valuation. Furthermore, an approximate three-fold increase from its starting IPO value and diversification into several lucrative fields has peaked investor interest.