SEHK:960

Stock Analysis Report

Longfor Group Holdings

Executive Summary

Longfor Group Holdings Limited, an investment holding company, engages in property development, investment, and management businesses in China.

Snowflake

Fundamentals

High growth potential with excellent balance sheet.

Share Price & News

How has Longfor Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

6.6%

SEHK:960

2.0%

HK Real Estate

1.5%

HK Market


1 Year Return

52.2%

SEHK:960

5.1%

HK Real Estate

-4.7%

HK Market

960 outperformed the Real Estate industry which returned 3.8% over the past year.

960 outperformed the Market in Hong Kong which returned -5.9% over the past year.


Share holder returns

960IndustryMarket
7 Day6.6%2.0%1.5%
30 Day4.3%4.0%3.9%
90 Day11.0%-6.0%-8.2%
1 Year58.8%52.2%9.4%5.1%-1.4%-4.7%
3 Year228.5%191.9%61.0%44.4%31.5%18.3%
5 Year280.2%214.8%77.7%47.1%24.3%3.4%

Price Volatility Vs. Market

How volatile is Longfor Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Longfor Group Holdings undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Longfor Group Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

Longfor Group Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Longfor Group Holdings is overvalued based on earnings compared to the HK Real Estate industry average.

Longfor Group Holdings is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Longfor Group Holdings is good value based on expected growth next year.


Price Based on Value of Assets

Longfor Group Holdings is overvalued based on assets compared to the HK Real Estate industry average.


Next Steps

Future Growth

How is Longfor Group Holdings expected to perform in the next 1 to 3 years based on estimates from 25 analysts?

14.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Longfor Group Holdings's revenue is expected to grow significantly at over 20% yearly.

Longfor Group Holdings's earnings are expected to grow by 14.1% yearly, however this is not considered high growth (20% yearly).

Longfor Group Holdings's revenue growth is expected to exceed the Hong Kong market average.

Longfor Group Holdings's earnings growth is expected to exceed the Hong Kong market average.

Longfor Group Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Longfor Group Holdings is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Longfor Group Holdings performed over the past 5 years?

13.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Longfor Group Holdings's year on year earnings growth rate has been positive over the past 5 years.

Longfor Group Holdings's 1-year earnings growth exceeds its 5-year average (28.9% vs 13.9%)

Longfor Group Holdings's earnings growth has exceeded the HK Real Estate industry average in the past year (28.9% vs -0.5%).


Return on Equity

Longfor Group Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Longfor Group Holdings used its assets less efficiently than the HK Real Estate industry average last year based on Return on Assets.


Return on Capital Employed

Longfor Group Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Longfor Group Holdings's financial position?


Financial Position Analysis

Longfor Group Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Longfor Group Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Longfor Group Holdings's level of debt (90.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (95.5% vs 90.5% today).

Debt is well covered by operating cash flow (61.1%, greater than 20% of total debt).

Longfor Group Holdings earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.9x debt.


Next Steps

Dividend

What is Longfor Group Holdings's current dividend yield, its reliability and sustainability?

5.34%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Longfor Group Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).

Longfor Group Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (5.74%).

Longfor Group Holdings has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Longfor Group Holdings only paid a dividend in the past 9 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).


Next Steps

Management

What is the CEO of Longfor Group Holdings's salary, the management and board of directors tenure and is there insider trading?

8.1yrs

Average board tenure


CEO

Mingxiao Shao (54yo)

CN¥51,748,000

Compensation

Mr. Mingxiao Shao is the Chief Executive Officer of Longfor Properties Co. Ltd. Mr. Shao served as an Executive Deputy Chief Executive Officer of Longfor Properties Co., Ltd. until August 2011. He served a ...


CEO Compensation Analysis

Mingxiao's remuneration is higher than average for companies of similar size in Hong Kong.

Mingxiao's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

8.1yrs

Average Tenure

54.5yo

Average Age

The tenure for the Longfor Group Holdings board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Recent Insider Transactions

SellHK$3,469,85204 Apr 19
Mingxiao Shao
EntityIndividual
Role
CEO & Executive Director
Member of the Board of Directors
Shares121,536
Max PriceHK$28.55
SellHK$1,628,89204 Apr 19
Yi Zhao
EntityIndividual
Role
CFO & Executive Director
Member of the Board of Directors
Shares57,054
Max PriceHK$28.55
SellHK$917,62504 Apr 19
Chaojiang Li
EntityIndividual
Role
Executive Director
Member of the Board of Directors
Shares32,141
Max PriceHK$28.55
SellHK$3,405,000,31923 Jan 19
Junson Development International Limited
EntityCompany
Shares150,000,000
Max PriceHK$22.70
BuyHK$199,760,01919 Jan 19
Yajun Wu
EntityIndividual
Role
Chairperson of the Board
Chairman of the Board
Shares8,800,000
Max PriceHK$22.70
SellHK$2,197,10005 Dec 18
Frederick Peter Churchouse
EntityIndividual
Role
Member of the Board of Directors
Shares100,000
Max PriceHK$21.97
SellHK$1,162,77706 Nov 18
Frederick Peter Churchouse
EntityIndividual
Role
Member of the Board of Directors
Shares55,000
Max PriceHK$21.14
SellHK$2,048,64223 Oct 18
Yajun Wu
EntityIndividual
Role
Chairperson of the Board
Chairman of the Board
Shares126,500
Max PriceHK$16.19
BuyHK$16,20023 Oct 18
Yajun Wu
EntityIndividual
Role
Chairperson of the Board
Chairman of the Board
Shares1,000
Max PriceHK$16.20
BuyHK$15,235,56912 Oct 18
Yajun Wu
EntityIndividual
Role
Chairperson of the Board
Chairman of the Board
Shares842,000
Max PriceHK$18.09
BuyHK$14,582,84012 Oct 18
Yajun Wu
EntityIndividual
Role
Chairperson of the Board
Chairman of the Board
Shares846,000
Max PriceHK$17.24
BuyHK$3,193,60005 Oct 18
Mingxiao Shao
EntityIndividual
Role
CEO & Executive Director
Member of the Board of Directors
Shares160,000
Max PriceHK$19.96
SellHK$1,236,90005 Sep 18
Chi On Chan
EntityIndividual
Role
Member of the Board of Directors
Shares57,000
Max PriceHK$21.70
SellHK$3,106,10305 Sep 18
Chi On Chan
EntityIndividual
Role
Member of the Board of Directors
Shares143,000
Max PriceHK$21.72
SellHK$1,100,00031 Aug 18
Bing Xiang
EntityIndividual
Role
Member of the Board of Directors
Shares50,000
Max PriceHK$22.00
BuyHK$1,279,04929 Aug 18
Mingxiao Shao
EntityIndividual
Role
CEO & Executive Director
Member of the Board of Directors
Shares59,000
Max PriceHK$21.68
BuyHK$3,171,60229 Aug 18
Mingxiao Shao
EntityIndividual
Role
CEO & Executive Director
Member of the Board of Directors
Shares144,500
Max PriceHK$21.95
SellHK$2,248,00027 Aug 18
Bing Xiang
EntityIndividual
Role
Member of the Board of Directors
Shares100,000
Max PriceHK$22.48
BuyHK$9,801,90920 Jul 18
Yajun Wu
EntityIndividual
Role
Chairperson of the Board
Chairman of the Board
Shares489,000
Max PriceHK$20.04
BuyHK$15,850,79920 Jul 18
Yajun Wu
EntityIndividual
Role
Chairperson of the Board
Chairman of the Board
Shares777,000
Max PriceHK$20.40
BuyHK$6,135,00120 Jul 18
Mingxiao Shao
EntityIndividual
Role
CEO & Executive Director
Member of the Board of Directors
Shares300,000
Max PriceHK$20.45
BuyHK$2,605,80020 Jul 18
Yajun Wu
EntityIndividual
Role
Chairperson of the Board
Chairman of the Board
Shares129,000
Max PriceHK$20.20
BuyHK$5,978,58020 Jul 18
Mingxiao Shao
EntityIndividual
Role
CEO & Executive Director
Member of the Board of Directors
Shares300,000
Max PriceHK$19.93

Ownership Breakdown


Management Team

  • Yajun Wu (55yo)

    Chairperson of the Board

    • Compensation: CN¥11.62m
  • Mingxiao Shao (54yo)

    CEO & Executive Director

    • Compensation: CN¥51.75m
  • Chaojiang Li (51yo)

    Executive Director

    • Compensation: CN¥16.40m
  • Yi Zhao (42yo)

    CFO & Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥27.04m
  • Lei Zhang (47yo)

    Company Secretary

    • Tenure: 3.9yrs
  • Ying Shen (44yo)

    General Manager of the Human Resources Department

  • Guangjian Wang (48yo)

    Senior Vice President

  • Tyche Shi

    Head of Investor Relations Center


Board Members

  • Bing Xiang (56yo)

    Independent Non-Executive Director

    • Tenure: 9.7yrs
    • Compensation: CN¥342.00k
  • Derek Chan (56yo)

    Independent Non-Executive Director

    • Tenure: 9.7yrs
    • Compensation: CN¥342.00k
  • Ming Zeng (49yo)

    Independent Non-Executive Director

    • Tenure: 8.1yrs
    • Compensation: CN¥342.00k
  • Frederick Peter Churchouse (69yo)

    Independent Non-Executive Director

    • Tenure: 9.7yrs
    • Compensation: CN¥342.00k
  • Yajun Wu (55yo)

    Chairperson of the Board

    • Compensation: CN¥11.62m
  • Mingxiao Shao (54yo)

    CEO & Executive Director

    • Tenure: 8.1yrs
    • Compensation: CN¥51.75m
  • Chaojiang Li (51yo)

    Executive Director

    • Tenure: 2.7yrs
    • Compensation: CN¥16.40m
  • Yi Zhao (42yo)

    CFO & Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥27.04m

Company Information

Longfor Group Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Longfor Group Holdings Limited
  • Ticker: 960
  • Exchange: SEHK
  • Founded: 1993
  • Industry: real estate development
  • Sector: real estate
  • Market Cap: HK$184.141b
  • Shares outstanding: 5.96b
  • Website: Click here

Number of Employees


Location

  • Longfor Group Holdings Limited
  • CSC Fortune International Center
  • 18th Floor
  • Beijing
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
960SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2009
RLFDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2009
960SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 2009
LNGP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2009
960SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 2009
LGFR.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDAug 2012

Biography

Longfor Group Holdings Limited, an investment holding company, engages in property development, investment, and management businesses in China. Its Property Development segment develops and sells office an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/16 12:55
End of Day Share Price2019/07/16 00:00
Earnings2018/12/31
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.