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Fangdd Network Group Ltd. (DUO) stock surged in the current trading session; here’s why

In the current trading session, Fangdd Network Group Ltd. (DUO) stock had surged by 16.09% to $3.68 at last check. DUO stock previously closed the session at $3.17. The DUO stock volume traded 5.92 million shares. In the past year up to date, DUO stock plunged by -66.63% however in the past week, the DUO stock jumped by 7.82%. Furthermore, DUO stock is currently valued in the market at $241.55 million and has 79.85 million outstanding shares.

What you need to know about Fangdd Network Group Ltd.

Fangdd Network Group Ltd. is a real estate firm that focuses on providing its services on an online real-estate platform. The company operates in the market of the People’s Republic of China. The online services are provided on the website known as fangdd.com. The business services are provided through an agent-client driven platform through which one can tap into the specific region-based real-estate news, listings of houses and property data, admittance to shared-interest online networks, just as offers exchange help administrations and information scientific items. The organization was established in 2011 and is settled in Shenzhen, the People’s Republic of China. Through inventive utilization of mobile web, cloud, and big data, FangDD has in a general sense changed the manner in which realtors direct business through a set-up of modular products and services controlled by SaaS apparatuses, productions, and innovation. Of the around 2.0 million realtors in China, more than 1.6 million were on its foundation as of December 31, 2020.


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Why Fangdd’s online real estate platform is extremely valuable in the real estate market now

China’s real estate industry is massive and is overall adapting massively to the new digital era. Since the pandemic, developers have moved their focus to utilize digital advertising channels to improve their working efficiencies following the execution of recent pandemic-based policies. As such digital promotions and marketing have become a fundamental device for developers to grow their organizations. Moreover, the market for property deals and real-estate value-added services is developing exponentially.

Considering these market shifts, this is the prime time for an app and website-driven real-estate service provider in the world’s largest market (China) to provide its best-in-class services to both real estate agents and developers through its SaaS offerings. This is allowing Fangdd to all the more likely benefit from the opportunities achieved by the digitization of China’s land industry going ahead in 2021.

The company’s financial highlights from first quarter 2021

The company improved its revenue from RMB272.1 million to RMB291.0 million, this 6.9% increase was due to the company diversifying its revenue stream and incorporating new SaaS services to companies. As the competition of real estate increased in China, this new innovative approach to business helps the company retain its growth in revenue.

Furthermore, the increase in the revenue brought along with it, the increase in the cost of revenue due to increased commission fees which resulted from higher sales. The second reason for the increase in revenue of cost was due to the operating cost of providing SaaS solutions to companies.

From the lens of the operating activities, this translates to an increased number of active agents of the company’s platform by 1.2% (221.1 thousand users) however it is the increase in the close-loop agents that really represents a shift towards digital platform- a 174.6% increase to 18.4 thousand users.

Outlook of DUO stock

The company has also provided a business outlook in which it expects the business revenue to be RMB380 million-RMB420 million. This is based on the company’s recent potential in a diversified portfolio of SaaS services and trends in the digitization of the real estate industry.

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