Longfor Group Holdings (0960) AI Stock Analysis

• Market Cap: $71.52B
• Dividend Yield: 0.45%
• Average Volume (3M): 19.38M
• Price to Earnings (P/E): 6.1
• Beta (1Y): 2.15
• Revenue Growth: -30.30%
• EPS Growth: -25.60%
• Country: HK
• Employees: 29,738
• Sector: Real Estate
• Sector Strength: 57
• Industry: Real Estate - Development
• EPS (TTM): 0.31
• Shares Outstanding: 6,987,179,700
• 10 Day Avg. Volume: 18,176,305
• 30 Day Avg. Volume: 19,384,136
• PEG Ratio: -1.29
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.09
• 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: $11.62
• Price Target Upside: 10.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: HK$11.50 ▲(9.52%Upside)

The overall stock score reflects a balance of mixed financial performance, positive technical analysis, and attractive valuation. The financial performance is weighed down by profitability pressures and cash flow concerns, while technical indicators and valuation metrics provide support, suggesting potential upside with associated risks.

Positive Factors

Balance Sheet Optimization

Balance sheet optimisation is on track with decent refinancing progress.

Cash Flow and Liquidity

Making strides in balance sheet optimisation with positive cashflow and liquidity safety.

Recurring Income Stream

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 Business Challenges

Development business to drag on profit and loss due to recognition of low-margin projects.

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 Business Overview & Revenue Model

Company Description

Longfor Group Holdings Limited, an investment holding company, engages in property development, investment, and management businesses in the People's Republic of China. It operates through Property Development; Property Investment; and Property Management and Related Services and Others segments. The Property Development segment develops and sells office and commercial premises, and residential properties. The Property Investment segment leases investment properties, including shopping malls and rental housing. The Property Management and Related Services and Others segment provides property management and related services, as well as hotel operation and other activities. It also offers space, housing agency, and housing decoration services. The company was formerly known as Longfor Properties Co. Ltd. and changed its name to Longfor Group Holdings Limited in June 2018. Longfor Group Holdings Limited was founded in 1993 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Longfor Group makes money primarily through its property development and sales operations, which include the construction and sale of residential and commercial properties. The company generates significant revenue from its property investment segment by leasing out retail and office spaces in its developed properties, creating a steady stream of rental income. Additionally, Longfor provides property management services, offering maintenance and management solutions for residential and commercial properties, which contribute to its revenue. Strategic partnerships with other real estate developers and investors, as well as the company's focus on urbanization and high-demand regions, further enhance its earning potential.

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 despite some reduction in debt levels, and decreasing ROE suggests reduced profitability. Cash flow 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	127.47B	180.74B	250.57B	223.38B	184.55B
Gross Profit	20.41B	30.58B	53.04B	56.54B	54.03B
EBITDA	12.14B	20.24B	41.42B	40.65B	41.88B
Net Income	10.40B	12.85B	24.36B	23.85B	20.00B
Balance Sheet
Total Assets	665.64B	700.41B	786.77B	875.65B	765.16B
Cash, Cash Equivalents and Short-Term Investments	38.40B	59.23B	72.13B	88.19B	77.45B
Total Debt	206.69B	207.48B	223.31B	227.10B	195.38B
Total Liabilities	420.16B	463.95B	553.60B	653.77B	572.43B
Stockholders Equity	161.43B	151.97B	142.10B	124.95B	108.34B
Cash Flow
Free Cash Flow	29.41B	32.16B	9.66B	28.00B	35.86B
Operating Cash Flow	29.75B	33.01B	9.96B	28.53B	36.73B
Investing Cash Flow	-11.60B	-11.61B	-12.41B	-48.73B	-41.40B
Financing Cash Flow	-29.42B	-34.27B	-13.56B	31.30B	20.90B

Longfor Group Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.50
• 50DMA: Positive
• 100DMA: Positive
• 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 10.5 is above the 20-day moving average (MA) of 10.06, above the 50-day MA of 9.85, and below the 200-day MA of 10.55, indicating a neutral trend. The MACD of 0.19 indicates Negative momentum. The RSI at 61.93 is Neutral, neither overbought nor oversold. The STOCH value of 75.97 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
0960	69 Neutral	$71.52B	6.14	6.64%	0.45%	-30.30%	-25.60%
Sector *	64 Neutral	$6.77B	15.25	-1.98%	7.08%	4.47%	-23.75%
CHVKF	―	$10.75B	5.74		13.28%	―	―
CHKGF	―	$16.30B	8.87	3.52%	1.65%	―	―
SNLAF	―	$10.60B	20.68	2.17%	12.89%	―	―
WARFF	―	$9.05B	―	-2.30%	1.79%	―	―
0247	66 Neutral	HK$43.29B	20.20	2.19%	2.93%	-30.23%	-40.59%

Longfor Group Holdings Corporate Events

Longfor Group Holdings Announces Successful AGM Resolutions

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

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

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

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.