BEKE-W

2423.HK opened lower and rallied higher in the morning session, closing at HKD 45.98, up 5.2% from previous close, with an intraday range of 3.7%, driven by a 63.2% YoY jump in Q1 EPS to HKD 0.4195 and a 55.31% YoY increase in net profit to HKD 1.423 billion, despite a 14.27% YoY revenue decline to HKD 21.419 billion; net profit margin rebounded sharply from 0.4% in Q4 to 6.65%, and operating profit turned positive at HKD 1.443 billion, up 128.14% YoY, signaling a fundamental improvement; the stock has broken above MA20 (HKD 39.79) and MA60 (HKD 42.76), yet remains 14.69% below the 52-week high of HKD 53.9, with a YTD gain of 9.58%, though its PE of 40.01x suggests elevated valuation.

KE Holdings (2423.HK) rose in the morning session but retreated in the afternoon, closing at HK$42.12, up 0.8% from the previous close of HK$41.78. The stock reached an intraday high of HK$42.92 before drifting lower throughout the afternoon to finish at the session low. The company has been actively repurchasing shares for cancellation and recently granted 7 million restricted share units to 649 employees, drawing attention to its capital allocation priorities. The current price is about 19% above the 52-week low of HK$35.38 but remains roughly 22% below the 52-week high of HK$53.9, and sits below the 60-day moving average of HK$42.688. UBS recently noted improving homebuying intent in China's tier-1 cities and listed KE Holdings among its preferred names, while Citi expects developers to accelerate project launches from September. Despite these positive signals, the stock's limited upside suggests lingering concerns about the pace of industry recovery.