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BEKE(2423)
Analysis：
On October 12th, Deputy Minister of Finance Liao Min introduced at the State Council Information Office press conference that actively studying and implementing policies conducive to the stable development of the real estate market, mainly including: (1) supporting local governments in using special bonds to reclaim idle stock land that meets certain conditions, which can also be used for new land reserve projects in areas with actual demand; (2) effectively using special bonds to acquire existing commercial housing for affordable housing purposes; (3) promptly studying and clarifying the connection between ordinary residential and non-ordinary residential standards for value-added tax and land value-added tax policies, and further increasing support. Various regions have successively released sales data for the National Day holiday. Judging from the performance of new house visits and subscriptions, with the concentrated implementation of various policies before the holiday, the market heat in several cities in October has significantly increased compared to before the holiday. The performance of the "Silver Ten" season opening has exceeded expectations, and there are clear signs of market stabilization. According to data monitored by Zhong Index, the average subscription volume of most cities` surveyed projects during the National Day holiday exceeded the total for September. Especially in first-tier cities, under the promotion of optimized policies, the number of project visits and subscriptions has significantly increased. KE Holdings is a leading integrated online and offline real estate transaction and service platform. The company has pioneered the establishment of platform infrastructure and standards in China, committed to reshaping the operating model of service providers to more efficiently provide consumers with services such as second-hand and new housing transactions, home leasing, home decoration, and other real estate transactions and residential services.
Strategy：
Buy-in Price: $58.20, Target Price: $64.05, Cut Loss Price: $53.00
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Report Review of August 2024
Sectors: TMT, Semiconductors, Consumer & Healthcare （Eric Li） TMT, Semiconductors, Consumer & Healthcare （Eric Li）This month I released reports of 361 DEGREES INT. (1361.HK). During 2023FY, 361 Degrees International Limited (361 Degrees) recorded a revenue of RMB8,423.3mn, increasing 21.0% YoY. Profit attributable to the equity shareholders of the Company was RMB961mn, representing a YoY increase of 28.7%. A total dividend of HK20.4 cents per ordinary share (equivalent to RMB18.7 cents), representing a dividend payout ratio of 40.2%. In terms of product segment, sales of the company's two core product lines, namely footwear and apparel, increased by 23.0% YoY and 9.8% YoY respectively. For the year under review, the proportions of total revenue of footwear and apparel sales were slightly increased from 41.0% to 41.7% YoY and slightly decreased from 35.2% to 31.9% YoY of the total revenue respectively. This was mainly due to the increase in proportion of sales revenue from 361 Degrees Kids from 20.7% to 23.2% of the total revenue for the year under review, which in turn affected the proportion of sales of various products to total revenue. The average wholesale price (AWP) of footwear and apparel edged up by 3.0% and 0.5% year-on-year respectively. The increase in footwear's and apparel's AWP was mainly due to the upward adjustments of the wholesale prices of the existing products across different product lines in order to cover the increase in cost of production and reflect the continuous brand image enhancement; the upgrade of product mix by launching a variety of new products with a higher AWP; and the increase in proportion of sales revenue generated from the e-commerce business which has a higher AWP than the sales made to distributors, above reasons contributed to increase in AWP as compared to that of last year. In addition, the sales volume of footwear and apparel products increased by 19.4% and 9.4% YoY, respectively. In recent years, as China's consumer preferences leaned towards specialisation, diversification, and cost effectiveness, the company positions as a "professional, youthful, and internationalised" brand. The company has built a diversified brand matrix based on professional functions and its own-branded IP. With 2024 bringing numerous international and domestic sports events, including the highly anticipated Paris Olympics, which are expected to stimulate a broader participation in sports and increase consumer demand. We expect 2024-2025 EPS to be RMB0.49 and RMB0.53 respectively, with PT of HKD4.02, implies a FY2024E P/E of 7.47x (~2-yrs historical average). Our investment rating is “Accumulate”. 
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