10 Best Asian Stocks To Buy Now

7. KE Holdings (NYSE:BEKE)

Upside Potential: 47.90%

Average Analyst Price Estimate: $21.83

KE Holdings (NYSE:BEKE) also known as Beike is headquartered in Beijing and operates Lianjia, China’s largest real estate brokerage network for housing transactions and services. The company also offers services such as home renovation, furnishing solutions, rental management, and financial services. KE Holdings (NYSE:BEKE) has 8,000 offices across China and operates a portfolio of over 500,000 rental apartments.

Over the past 5 years, the real estate market in China has experienced the most severe downturn. However, KE Holdings (NYSE:BEKE) has increased its market share in both the existing homes market and the new homes market. The key reason behind KE Holdings’ (NYSE:BEKE) success lies in its Agent Cooperation Network (ACN) and authentic property listings.

The ACN (Agent Cooperation Network) is an operating system on Beike’s platform that standardizes and organizes housing transactions by defining the roles, rights, and obligations of real estate agents. It promotes efficient cooperation and competition among agents, and streamlines the transaction process, allowing agents to specialize and gain deep knowledge in specific regions. ACN is crucial in addressing the widespread distrust and conflicts of interest in real estate transactions. Lianjia is the most trusted real estate brokerage brand in China for authentic property listings, as China’s real estate market is flooded with fake listings to solicit house hunters.

KE Holdings’ (NYSE:BEKE)  home renovation and furnishing segment which accounted for only 2.8% of revenue in 2021, skyrocketed to nearly 25% to $1.52 billion in 2023, Additionally, the company’s rental property management services have also seen substantial growth, with revenues surging by 194.8% year-over-year, fueled by the expansion of its rental platform from 70,000 to over 200,000 units in 2023 and improved occupancy rates. This diversification and organic growth across multiple segments positions KE Holdings (NYSE:BEKE) as a strong player in China’s real estate market, with significant upside potential. Analysts expect the company to grow its revenue by 10.8% this year. The stock is trading at $14.76 as of August 14. Analysts have a consensus on the stock’s Buy rating, setting a price target of $21.83 which reflects a 47.90% upside potential.