Daiwa Lifts BEKE Target to HKD51 Despite 35% Profit Miss

BEKE Profit Misses by 35% on Layoff Costs

BEKE-W (02423.HK) reported that its adjusted net profit for the fourth quarter of 2025 fell sharply, missing market expectations by 35%. The significant profit shortfall was attributed directly to one-off severance payments resulting from an aggressive reduction of its Lianjia agent workforce. This strategic move to trim headcount created immediate financial pressure, overshadowing the company's underlying operational performance for the quarter.

Daiwa Lifts Target to HKD51 on Cost-Saving Outlook

Despite the earnings miss, investment bank Daiwa interpreted the layoffs as a positive catalyst for BEKE's long-term cost structure. The firm raised its target price for the real estate platform to HKD51 from HKD46 and maintained its "Outperform" rating. Analysts at Daiwa project that the cost savings from this workforce optimization, combined with improved profitability in the residential leasing segment, will directly support margin expansion in 2026. To reflect this stronger outlook, the bank increased its earnings per share (EPS) forecasts for 2026 and 2027 by a range of 7% to 13%.