Longfor Group Holdings (0960) AI Stock Analysis

• Market Cap: HK$64.67B
• Dividend Yield: 3.96%
• Average Volume (3M): 20.71M
• Price to Earnings (P/E): 7.5
• Beta (1Y): 2.02
• Revenue Growth: -16.02%
• EPS Growth: -30.04%
• Country: HK
• Employees: 29,738
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 0.53
• Shares Outstanding: 7,041,631,300
• 10 Day Avg. Volume: 18,388,440
• 30 Day Avg. Volume: 20,713,762
• PEG Ratio: -0.26
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.49
• P/FCF Ratio: 2.11
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$11.40
• Price Target Upside: 25.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: HK$10.00 ▲(10.25% Upside)

The overall stock score of 62 reflects the company's mixed financial performance, with significant challenges in profitability and cash flow stability. Technical analysis indicates short-term volatility, while valuation metrics suggest the stock may be undervalued, providing some upside potential.

Positive Factors

Reduced leverage

Longfor’s decline in debt-to-equity over several years indicates deliberate deleveraging. Reduced leverage improves financial flexibility, lowers refinancing and interest risk, and increases capacity to fund new projects or absorb cyclical downturns—supporting stability across development cycles.

Diversified revenue mix

A mix of property sales plus leasing and property management creates recurring, non-transactional revenue that smooths cash flow across cycles. Stable rental and management fees bolster margin predictability, support working capital needs, and reduce reliance on one-off presales for long-term funding.

Market and brand position

Longfor’s reputation for high-quality, mixed-use and sustainable developments supports competitive differentiation. Strong brand and local government partnerships help secure prime land and buyer demand, supporting pricing power, presales traction, and durable positioning in urban property markets.

Negative Factors

Revenue contraction

A sustained 16% revenue decline signals weakened sales momentum and potential structural softness in demand or execution. Falling top-line reduces operating leverage, constrains reinvestment and deleveraging ability, and makes earnings and cash generation more vulnerable over the medium term.

Margin compression

Significant deterioration in gross and net margins over several years points to persistent cost pressure or weaker pricing power. Sustained margin compression erodes cash conversion and ROE, limits reinvestment capacity, and heightens sensitivity to volume declines in a capital-intensive business.

Weak and inconsistent cash flow

Fluctuating FCF and a sharp 2024 decline, with missing operating/FCF disclosure, indicate unreliable cash generation. This raises reliance on external financing for project delivery and debt service, increasing refinancing and liquidity risk in a sector that requires steady funding over long development horizons.

Longfor Group Holdings Business Overview & Revenue Model

Company Description

Longfor Group Holdings Limited (0960) is a leading property development and investment company based in China. Established in 1995, the company primarily operates in the real estate sector, focusing on residential and commercial properties. Longfor is engaged in various segments, including property development, property leasing, and property management, with a strong emphasis on creating high-quality living spaces and mixed-use developments. The company is known for its innovative designs and sustainable practices, aiming to enhance urban living environments.

How the Company Makes Money

Longfor Group generates its revenue primarily through the sale of residential and commercial properties. The company develops a range of real estate projects, including apartments, offices, and shopping centers, which are sold to end-users and investors. A significant portion of its income also comes from property leasing, where it rents out commercial spaces and retail properties, generating recurring revenue. Additionally, Longfor engages in property management services, providing maintenance and administrative services for its developments, further contributing to its income streams. The company benefits from strategic partnerships with local governments and industry stakeholders, allowing it to secure prime land for development and leverage local market knowledge. Economic factors, such as demand for housing and urbanization trends, also play a crucial role in influencing its revenue.

Longfor Group Holdings Financial Statement Overview

Summary

Longfor Group Holdings shows a mixed financial performance. The income statement indicates pressure on profitability with declining margins and revenue volatility. The balance sheet reflects high leverage with a debt-to-equity ratio of 1.28, and declining equity growth. Cash flow analysis raises concerns due to recent unreported cash flows, indicating potential liquidity issues.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	139.37B	127.47B	180.74B	250.57B	223.38B	184.55B
Gross Profit	18.19B	20.41B	30.58B	53.04B	56.54B	54.03B
EBITDA	10.84B	12.14B	20.24B	41.42B	40.65B	41.88B
Net Income	7.75B	10.40B	12.85B	24.36B	23.85B	20.00B
Balance Sheet
Total Assets	631.60B	665.64B	700.41B	786.77B	875.65B	765.16B
Cash, Cash Equivalents and Short-Term Investments	42.63B	38.40B	59.23B	72.13B	88.19B	77.45B
Total Debt	198.49B	206.69B	207.48B	224.77B	228.48B	196.65B
Total Liabilities	387.16B	420.16B	463.95B	553.60B	653.77B	572.43B
Stockholders Equity	165.07B	161.43B	151.97B	142.10B	124.95B	108.34B
Cash Flow
Free Cash Flow	35.41B	29.41B	32.16B	9.66B	28.00B	35.86B
Operating Cash Flow	35.62B	29.75B	33.01B	9.96B	28.53B	36.73B
Investing Cash Flow	-9.26B	-11.60B	-11.61B	-12.41B	-48.73B	-41.40B
Financing Cash Flow	-32.64B	-29.42B	-34.27B	-13.56B	31.30B	20.90B

Longfor Group Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0960, the sentiment is Positive. The current price of 9.07 is above the 20-day moving average (MA) of 9.06, below the 50-day MA of 9.55, and below the 200-day MA of 10.07, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 51.56 is Neutral, neither overbought nor oversold. The STOCH value of 60.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0960.

Longfor Group Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1113	70 Outperform	HK$150.77B	13.28	2.92%	4.33%	9.72%	-26.47%
0247	68 Neutral	HK$44.86B	18.56	2.41%	2.89%	-0.53%	-9.84%
0083	67 Neutral	HK$108.79B	25.36	2.41%	5.62%	-0.48%	-13.78%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0960	62 Neutral	HK$64.67B	7.55	4.81%	3.96%	-16.02%	-30.04%
0004	61 Neutral	HK$72.73B	-1,414.12	-0.04%	1.76%	-39.77%	97.82%
2202	40 Underperform	$60.69B	-0.64	-23.88%	―	-28.36%	-206.13%

Longfor Group Holdings Corporate Events

Longfor Group Posts RMB63.16 Billion in 2025 Contracted Sales and Buys Shenzhen Land Plot

Longfor Group reported unaudited aggregated contracted sales of RMB63.16 billion for 2025, representing 5.186 million square metres of gross floor area sold, with December alone contributing RMB3.77 billion and 447,000 square metres. Sales were geographically diversified, with notable contributions from Western China, the Pan Bohai Rim and the Yangtze River Delta, while recurring income for the year reached approximately RMB26.77 billion, split between operating income of about RMB14.19 billion and service income of roughly RMB12.58 billion. The group also expanded its land bank by acquiring a 100%-owned plot in Shenzhen’s Matian Subdistrict with 63,623 square metres of GFA at a cost of RMB766 million, underscoring continued selective investment in high-value urban markets even as the disclosed figures remain preliminary and subject to audit.

The most recent analyst rating on (HK:0960) stock is a Hold with a HK$9.90 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 November 2025 Sales Performance

Longfor Group Holdings Limited reported unaudited operating statistics for November 2025, with aggregated contracted sales reaching RMB59.39 billion. In November alone, contracted sales amounted to RMB3.64 billion. The company’s recurring income by the end of November was approximately RMB24.42 billion. These figures, however, are preliminary and subject to change, advising investors to exercise caution.

The most recent analyst rating on (HK:0960) stock is a Hold with a HK$11.00 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 October 2025

Longfor Group Holdings Limited reported unaudited operating statistics for October 2025, achieving aggregated contracted sales of RMB55.75 billion and a total contracted sales of RMB5.00 billion for the month. The company’s recurring income reached approximately RMB22.16 billion by the end of October 2025. This performance highlights the company’s strong market presence and operational efficiency across multiple regions in China, although the figures are preliminary and subject to change.

The most recent analyst rating on (HK:0960) stock is a Hold with a HK$11.00 price target. To see the full list of analyst forecasts on Longfor Group Holdings stock, see the HK:0960 Stock Forecast page.