- KE Holdings offers an online and offline platform for housing transactions and services in China.
- I wouldn’t buy shares. I found five reasons to be very cautious about KE Holdings.
- The PRC seems to have announced several initiatives to promote that the housing industry is not controlled by speculators. The measures include restrictions on purchases along with different credit policies.
- The PRC may impose the price of houses all over the country. In Shenzhen, authorities offer reference prices on existing home transactions. As a result, the total number of transactions decreased significantly.
- I used a WACC of 20%, which implied a valuation close to CNY115 or $15. With all these figures in mind, if I have the shares, I would sell at $20 per share, and may buy at $10-$15.
For further details see:
KE Holdings May Have A Downside Potential Of Close To 50%