LONGFOR GROUP

Longfor fell 5.6% to HKD 6.55, pressured by broad market weakness and deepening real estate sales deterioration, touching HKD 6.845 in morning trading before declining through the afternoon session. First-half contracted sales declined 53% year-over-year, with July deteriorating further to RMB 209 million. The company posted consecutive quarterly losses, with Q3 and Q4 earnings per share of HKD -0.1755 and HKD -0.1785 respectively, and a net profit margin of -5.69%. Goldman Sachs subsequently cut its target price to HKD 7.5 and expects a full-year net loss of RMB 2.4 billion. On the positive side, the company successfully redeemed bonds and fully repaid debt obligations due within the year, indicating improved liquidity. From a valuation perspective, the stock has declined 25% year-to-date, down 46.5% from its 52-week high, trading near 52-week lows and well below its 20-day and 60-day moving averages.

Longfor surged 8.8% to HKD 6.94 today against a declining HSI, peaking at HKD 6.945 intraday, driven by positive debt management signals—the company redeemed its 2021 bonds and fully repaid debt due within the year, signaling aggressive deleveraging. The stock is valued at extremely depressed levels, trading 43.3% below its 52-week high of HKD 12.24 with a price-to-book ratio of just 0.27x, near the 52-week low and down 20.6% year-to-date, suggesting technical support. However, fundamentals remain under pressure: Q4 revenue fell 50% YoY to HKD 21.4 billion with a net loss of HKD 1.22 billion, and while Goldman Sachs acknowledges debt improvements, its HKD 7.5 target price suggests limited upside from current levels.

Longfor Group closed at HKD 6.38, down 3.7%, pressured by deteriorating fundamentals and downward revisions from analysts. The company posted consecutive losses in Q3 and Q4 2025, with Q4 net losses of HKD 1.22 billion and operating revenue declining 50% year-over-year, translating to a negative net margin of 5.69%. Goldman Sachs recently cut its target price to HKD 7.5, forecasting full-year net losses of RMB 2.4 billion, a revision that dampened market sentiment. Sales momentum remains weak with July contracted sales of only RMB 2.09 billion, reflecting the softer property market environment. From a valuation perspective, Longfor has tumbled from its 52-week high of HKD 12.24 to the current level, a 47.88% decline, and posted a year-to-date drop of 27% since the start of 2026. The stock trades well below its 60-day moving average of HKD 7.13. While the company successfully redeemed its 2021 bonds and fully repaid all debt due within this year, these positive steps offer limited offset against the backdrop of revenue and profit deterioration.

Longfor Group edged up to HKD 6.625 today (from previous close of 6.515), with limited upside momentum. The stock's struggles stem from deteriorating fundamentals on both earnings and sales: Q3 and Q4 2025 posted consecutive losses with revenues declining over 50% year-over-year; July contracted sales hit only RMB 2.09 billion, with H1 totaling RMB 16.55 billion (down 53% YoY). Goldman Sachs cut its target price to HKD 7.5 and maintains a Neutral rating, signaling institutional pessimism on recovery prospects. A PB of just 0.26x reveals severe market skepticism on asset value. Trading 12% above its 52-week low of HKD 5.92 but 46% below its 52-week high of HKD 12.24, the stock has declined 24% year-to-date. The group has made some progress reducing interest-bearing debt by approximately RMB 6 billion since mid-2022, though this falls far short of offsetting the sales deterioration.

Longfor Group declined 1.2% to HK$6.515 today, with early morning weakness reaching HK$6.37 around 10:19 AM before afternoon recovery. Headwinds include Goldman Sachs' downgrade of price target to HK$7.5 with Hold rating maintained, and first-half contracted sales plunging 53% year-over-year to RMB16.55 billion. Recent earnings show consecutive losses, with Q4 2025 posting a net loss of HK$1.219 billion and revenue declining over 50% year-on-year. Year-to-date the stock has fallen 25.46%, down 46.77% from its 52-week high of HK$12.24, trading well below its 20-day and 60-day moving averages. Longfor has reduced interest-bearing debt by nearly RMB60 billion, and currently trades at a depressed price-to-book ratio of just 0.26, reflecting the market's pessimistic pricing of its asset value.