BEKE - China's Combo Of 'Zillow And MLS' KE Holdings Is Not A Buy Now

• China's RE brokerage market is relatively young and the growing RE transaction market indicates a stable growth of the RE brokerage market.
• BEKE's strengths lie in its Agent Cooperation Network (ACN), similar to the US's MLS system, and ACN lays a foundation for RE brokerage industry standards.
• With increasing joinings of RE brokers, BEKE enjoys the synergy: more business partners, more revenue and enhanced industry-wide influence.
• Compared with Chinese counterparts, BEKE has high multiples, hinting an overestimated valuation.
• Risks: US market regulation against foreign companies, BEKE's affliated company Ziroom in a down time.

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