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Longfor Group Holdings Ltd. (HK:0960)
:0960

Longfor Group Holdings (0960) AI Stock Analysis

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HK

Longfor Group Holdings

(OTC:0960)

Rating:61Neutral
Price Target:
HK$10.00
▲(4.82%Upside)
The overall stock score is driven by mixed financial performance challenges and bearish technical signals. However, the valuation is relatively attractive with a low P/E ratio and a decent dividend yield, partially offsetting the negatives.
Positive Factors
Financial Management
Longfor is recognized for its prudent financial management and remains among the top 10 in presales despite sector turbulence.
Liquidity Management
Refinancing progress has been satisfactory, with Longfor securing substantial incremental operating asset loans and repaying onshore bonds, indicating stable liquidity management.
Recurring Income
Longfor has established a rapidly growing recurring income stream from its shopping mall, rental housing, and property service businesses, adding resilience to its earnings profile.
Negative Factors
Development Earnings Challenge
Development earnings could head into the red due to challenges from the downturn in the physical market, with ASP pressure and possible impairments weighing on development margins.
Earnings Decline
Longfor released a profit warning after market close, noting FY24 core earnings may fall 35-40% on lower development revenue and margin compression.
Presales Decline
Presales could see another year of decline with homebuyer sentiment yet to recover, and Longfor's likely extension of its inventory-centric launch strategy.

Longfor Group Holdings (0960) vs. iShares MSCI Hong Kong ETF (EWH)

Longfor Group Holdings Business Overview & Revenue Model

Company DescriptionLongfor Group Holdings Limited is a leading real estate developer and operator based in China, primarily engaged in the development, investment, and management of real estate projects. The company's operations extend across residential property development, commercial property investment, and property management services. Longfor Group is known for its diverse portfolio that includes high-quality residential communities, shopping malls, and office buildings, catering to a wide range of customer needs.
How the Company Makes MoneyLongfor Group Holdings generates revenue through three main streams: property development, property investment, and property management. The core revenue driver is the development and sale of residential properties, where the company acquires land, develops housing projects, and sells residential units. In addition, Longfor invests in and manages commercial properties such as shopping malls and office buildings, generating stable rental income. The property management segment provides services to residential and commercial properties, ensuring sustained income through management fees. Longfor's strategic partnerships with other real estate companies and local governments further enhance its project development capabilities and market reach, contributing to its financial success.

Longfor Group Holdings Financial Statement Overview

Summary
Longfor Group Holdings shows a mixed financial performance. The income statement indicates pressure on profitability and revenue volatility. The balance sheet reflects high leverage and declining equity growth, although some reduction in debt levels is noted. Cash flow analysis raises concerns due to recent unreported cash flows, indicating potential liquidity issues. Overall, the company faces challenges in maintaining profitability and managing debt, with potential risks from fluctuating cash flows.
Income Statement
65
Positive
The gross profit margin shows a declining trend from 29% in 2019 to 16% in 2024, indicating pressure on costs or pricing power. Net profit margin also decreased from 12% in 2019 to 8% in 2024. Revenue has shown fluctuations, with a peak in 2022 followed by a decline, suggesting volatility in sales. EBIT and EBITDA margins have similarly decreased, reflecting tighter operating conditions.
Balance Sheet
70
Positive
The debt-to-equity ratio increased from 1.83 in 2019 to 1.28 in 2024, indicating reduced leverage but still a high debt level. ROE decreased from 19% in 2019 to 6% in 2024, reflecting reduced profitability. The equity ratio remained stable, but the declining trend in stockholders' equity growth suggests pressure on asset management.
Cash Flow
55
Neutral
Free cash flow has fluctuated significantly, with a sharp decline in 2024. The company has not reported operating or free cash flow in 2024, indicating potential issues in cash generation. Historically, operating cash flow has been positive but inconsistent, contributing to uncertainty in cash flow stability.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue127.47B180.74B250.57B223.38B184.55B
Gross Profit20.41B30.58B53.04B56.54B54.03B
EBITDA12.14B20.24B41.42B40.65B41.88B
Net Income10.40B12.85B24.36B23.85B20.00B
Balance Sheet
Total Assets665.64B700.41B786.77B875.65B765.16B
Cash, Cash Equivalents and Short-Term Investments38.40B59.23B72.13B88.19B77.45B
Total Debt206.69B207.48B223.31B227.10B195.38B
Total Liabilities420.16B463.95B553.60B653.77B572.43B
Stockholders Equity161.43B151.97B142.10B124.95B108.34B
Cash Flow
Free Cash Flow29.41B32.16B9.66B28.00B35.86B
Operating Cash Flow29.75B33.01B9.96B28.53B36.73B
Investing Cash Flow-11.60B-11.61B-12.41B-48.73B-41.40B
Financing Cash Flow-29.42B-34.27B-13.56B31.30B20.90B

Longfor Group Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price9.54
Price Trends
50DMA
9.92
Negative
100DMA
10.13
Negative
200DMA
10.51
Negative
Market Momentum
MACD
-0.10
Negative
RSI
47.19
Neutral
STOCH
59.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0960, the sentiment is Negative. The current price of 9.54 is below the 20-day moving average (MA) of 9.59, below the 50-day MA of 9.92, and below the 200-day MA of 10.51, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 47.19 is Neutral, neither overbought nor oversold. The STOCH value of 59.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0960.

Longfor Group Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$122.49B9.013.52%4.46%-3.04%-20.01%
69
Neutral
HK$79.88B21.012.17%1.72%-30.38%-43.73%
66
Neutral
HK$41.98B19.592.19%0.78%-30.23%-40.59%
61
Neutral
$64.98B5.586.64%5.00%-30.30%-25.60%
61
Neutral
HK$74.87B-2.30%1.63%-36.07%-441.20%
53
Neutral
$1.18B3.34-0.11%7.12%-1.52%-126.00%
47
Neutral
$79.84B
13.43%-32.30%-620.87%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0960
Longfor Group Holdings
9.54
-0.76
-7.37%
HK:0083
Sino Land Co
8.73
1.32
17.77%
HK:2202
China Vanke Co
5.09
0.60
13.36%
HK:0247
Tsim Sha Tsui Properties Limited
19.20
1.77
10.15%
HK:1113
CK Asset Holdings
35.00
7.41
26.88%
HK:0004
Wharf (Holdings)
24.50
1.57
6.85%

Longfor Group Holdings Corporate Events

Longfor Group Holdings Announces Successful AGM Resolutions
Jun 18, 2025

Longfor Group Holdings Limited announced the results of its Annual General Meeting held on June 18, 2025, where all proposed resolutions were passed. Key resolutions included the approval of the audited financial statements for 2024, the declaration of a final dividend, re-election of directors, reappointment of auditors, and granting of general mandates to issue and repurchase shares. The successful passing of these resolutions reflects the company’s stable governance and strategic direction, potentially reinforcing investor confidence and solidifying its position in the real estate market.

The most recent analyst rating on (HK:0960) stock is a Hold with a HK$10.30 price target. To see the full list of analyst forecasts on Longfor Group Holdings stock, see the HK:0960 Stock Forecast page.

Longfor Group Announces Final Dividend with Scrip Option for 2024
Jun 18, 2025

Longfor Group Holdings Limited announced a final cash dividend of RMB 0.1 per share for the financial year ending December 31, 2024, with an option for shareholders to receive scrip shares. The dividend payment will be made in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.09398, with the payment date set for September 26, 2025. This announcement reflects the company’s ongoing commitment to providing shareholder value and may influence investor sentiment positively.

The most recent analyst rating on (HK:0960) stock is a Hold with a HK$10.30 price target. To see the full list of analyst forecasts on Longfor Group Holdings stock, see the HK:0960 Stock Forecast page.

Longfor Group Reports Strong Contracted Sales in May 2025
Jun 9, 2025

Longfor Group Holdings Limited reported unaudited operating statistics for May 2025, revealing aggregated contracted sales of RMB28.55 billion and a total contracted sales area of 2,095,000 sqm. The Group’s recurring income reached approximately RMB11.02 billion, with significant contributions from its property operation and service businesses. Despite the positive figures, the company advises caution as the data is preliminary and may differ from future audited financial statements.

The most recent analyst rating on (HK:0960) stock is a Hold with a HK$10.30 price target. To see the full list of analyst forecasts on Longfor Group Holdings stock, see the HK:0960 Stock Forecast page.

Longfor Group Reports Strong Sales and Strategic Land Acquisitions in April 2025
May 9, 2025

Longfor Group Holdings Limited reported unaudited operating statistics for April 2025, achieving contracted sales of RMB22.08 billion and acquiring two new land plots totaling 103,450 sqm. The company’s regional sales were distributed across Western China, Pan Bohai Rim, Yangtze River Delta, Central China, and Southern China, with significant contributions from each region. The announcement highlights the company’s continued expansion and investment in land acquisition, which could enhance its market positioning and operational capabilities.

Longfor Group Announces AGM and Key Resolutions for 2025
Apr 24, 2025

Longfor Group Holdings Limited has announced its upcoming annual general meeting scheduled for June 18, 2025, where shareholders will consider resolutions including the approval of audited financial statements, a final dividend, and the re-election of several directors. Additionally, the company seeks authorization for the board to issue new shares and manage treasury shares, which could impact its market operations and shareholder value.

Longfor Group Reports Strong Contracted Sales in March 2025
Apr 9, 2025

Longfor Group Holdings Limited announced its unaudited operating statistics for March 2025, reporting aggregated contracted sales of RMB16.95 billion and a total contracted sales area of 1,188,000 sqm. In March alone, the company achieved RMB7.01 billion in contracted sales, with significant contributions from regions such as the Yangtze River Delta and Western China. The company’s recurring income as of March 2025 was approximately RMB6.55 billion. These figures highlight Longfor Group’s strong market presence and operational performance, although investors are advised to interpret the data cautiously due to its unaudited nature.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 28, 2025