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    S&P Global BMI Index Inclusion Could Be a Game Changer for KE Holdings (BEKE)

    Simply Wall St·09/22/2025 14:19:28
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    • On September 21, 2025, KE Holdings Inc. (SEHK:2423) was added to the S&P Global BMI Index, expanding its reach to a broader spectrum of institutional investors.
    • This index inclusion can make the company’s shares more accessible to global investment funds, potentially broadening its international investor base.
    • With greater global visibility following its index inclusion, we’ll explore how this development interacts with KE Holdings’ long-term investment thesis.

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    KE Holdings Investment Narrative Recap

    To own shares in KE Holdings today, investors need to believe in a recovery of China’s real estate sector, ongoing digital transformation, and the company’s ability to expand recurring revenue streams while managing operational efficiency. The S&P Global BMI Index addition raises KE Holdings’ profile internationally but does not materially impact the most important short-term catalyst, continued platform growth as the property market stabilizes, or alleviate the biggest risk, which remains persistent weakness in China’s real estate sector.

    Of the company’s latest announcements, KE Holdings’ decision to increase its buyback authorization by US$2 billion on August 26, 2025, is most relevant in this context. While strong buyback activity can signal management’s confidence and potentially support the share price amidst heightened visibility from the index inclusion, its impact on addressing challenges from soft property market demand remains limited for now.

    On the other hand, investors should be aware of the ongoing risk from demographic pressure and weak transaction volumes that could...

    Read the full narrative on KE Holdings (it's free!)

    KE Holdings' outlook anticipates CN¥136.4 billion in revenue and CN¥8.6 billion in earnings by 2028. This is based on forecast annual revenue growth of 9.8% and an earnings increase of CN¥4.7 billion from the current CN¥3.9 billion.

    Uncover how KE Holdings' forecasts yield a $22.83 fair value, a 16% upside to its current price.

    Exploring Other Perspectives

    BEKE Community Fair Values as at Sep 2025
    BEKE Community Fair Values as at Sep 2025

    Fair value estimates from four members of the Simply Wall St Community range from US$18.86 to US$31.74 per share. While these views highlight the variety of outlooks, persistent pressure in China’s property market remains a key challenge influencing company performance and future returns.

    Explore 4 other fair value estimates on KE Holdings - why the stock might be worth just $18.86!

    Build Your Own KE Holdings Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.