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LONGFOR GROUP (00960.HK) Rises Over 4% Against Market; M Stanley Lifts TP to HKD8.23, Maintains Equalweight
2026-06-11 11:39:41 LONGFOR GROUP (00960.HK) is currently quoted at HKD8.53, up 4.02%, with turnover of 10.297 million shares, involving HKD86.347 million. M Stanley said in a research report that LONGFOR GROUP癒礎s proactive inventory reduction strategy may further widen losses in its property development business this year. However, over the medium term, this move should reduce balance sheet risks and lessen the drag on EPS. The broker noted that improving mall rental performance and continued deleveraging progress are encouraging, and the current valuation appears reasonable. Future share price upside will depend on a recovery in pre-sales performance. The broker added that LONGFOR GROUP癒礎s deleveraging process is back on track. In May, the company repaid another RMB1.5 billion of debt, leaving only RMB4.6 billion of debt due within the year. M Stanley expects operating cash flow to fully cover the relevant obligations and forecasts total debt to further decline to RMB143 billion in 2026. Meanwhile, proactive inventory reduction led to a 52% YoY drop in contracted sales in May. The broker adjusted its earnings forecasts for 2026 to 2028, revising its 2026 core loss forecast to RMB2.8 billion. However, given reduced drag from legacy projects, it raised its earnings forecasts for 2027 to 2028, which may imply very limited or no dividend payouts over the next 12 to 18 months. Taking into account the forecast adjustments, dilution impact from scrip dividends, recent land bank additions and a stronger RMB, M Stanley raised its TP on LONGFOR GROUP from HKD8.00 to HKD8.23 and maintained an Equalweight investment rating. (ad/u)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |