SEHK:960

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Longfor Group Holdings

Executive Summary

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


Snowflake Analysis

Adequate balance sheet average dividend payer.

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

Stable Share Price: 960 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.7%

960

8.1%

HK Real Estate

9.0%

HK Market


1 Year Return

28.0%

960

-9.6%

HK Real Estate

0.2%

HK Market

Return vs Industry: 960 exceeded the Hong Kong Real Estate industry which returned -8.3% over the past year.

Return vs Market: 960 exceeded the Hong Kong Market which returned -0.5% over the past year.


Shareholder returns

960IndustryMarket
7 Day4.7%8.1%9.0%
30 Day5.9%5.8%8.4%
90 Day-3.0%7.1%12.9%
1 Year32.8%28.0%-4.7%-9.6%4.4%0.2%
3 Year143.1%115.6%22.8%8.0%10.1%-1.8%
5 Year318.0%243.4%43.8%17.9%12.2%-6.7%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 960 (HK$38.6) is trading below our estimate of fair value (HK$151.86)

Significantly Below Fair Value: 960 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 960 is poor value based on its PE Ratio (11.2x) compared to the Real Estate industry average (7.1x).

PE vs Market: 960 is poor value based on its PE Ratio (11.2x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: 960 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 960 is overvalued based on its PB Ratio (2.2x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

How is Longfor Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

14.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 960's forecast earnings growth (14.4% per year) is above the savings rate (1.6%).

Earnings vs Market: 960's earnings (14.4% per year) are forecast to grow slower than the Hong Kong market (17.4% per year).

High Growth Earnings: 960's earnings are forecast to grow, but not significantly.

Revenue vs Market: 960's revenue (18.2% per year) is forecast to grow faster than the Hong Kong market (10.7% per year).

High Growth Revenue: 960's revenue (18.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 960's Return on Equity is forecast to be low in 3 years time (19.5%).


Next Steps

Past Performance

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

18.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 960 has high quality earnings.

Growing Profit Margin: 960's current net profit margins (12.1%) are lower than last year (14%).


Past Earnings Growth Analysis

Earnings Trend: 960's earnings have grown by 18.7% per year over the past 5 years.

Accelerating Growth: 960's earnings growth over the past year (12.9%) is below its 5-year average (18.7% per year).

Earnings vs Industry: 960 earnings growth over the past year (12.9%) exceeded the Real Estate industry 3.9%.


Return on Equity

High ROE: 960's Return on Equity (15.9%) is considered low.


Next Steps

Financial Health

How is Longfor Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 960's short term assets (CN¥495.3B) exceed its short term liabilities (CN¥333.9B).

Long Term Liabilities: 960's short term assets (CN¥495.3B) exceed its long term liabilities (CN¥151.6B).


Debt to Equity History and Analysis

Debt Level: 960's debt to equity ratio (97.1%) is considered high.

Reducing Debt: 960's debt to equity ratio has increased from 94.9% to 97.1% over the past 5 years.

Debt Coverage: 960's debt is well covered by operating cash flow (21.2%).

Interest Coverage: 960 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

3.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 960's dividend (3.44%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.29%).

High Dividend: 960's dividend (3.44%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.63%).


Stability and Growth of Payments

Stable Dividend: 960's dividend payments have been volatile in the past 10 years.

Growing Dividend: 960's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.3%), 960's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 960's dividends in 3 years are forecast to be well covered by earnings (41.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.9yrs

Average management tenure


CEO

Mingxiao Shao (55yo)

no data

Tenure

CN¥62,676,000

Compensation

Mr. Mingxiao Shao is the Chief Executive Officer of Longfor Group Holdings Limited (formerly known as Longfor Properties Co. Ltd.) Mr. Shao served as an Executive Deputy Chief Executive Officer of Longfor  ...


CEO Compensation Analysis

Compensation vs Market: Mingxiao's total compensation ($USD8.94M) is above average for companies of similar size in the Hong Kong market ($USD774.78K).

Compensation vs Earnings: Mingxiao's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Yajun Wu
Executive Chairperson of the Boardno dataCN¥10.13m44% CN¥102.6b
Mingxiao Shao
CEO & Executive Directorno dataCN¥62.68m0.48% CN¥1.1b
Yi Zhao
CFO & Executive Director5.33yrsCN¥34.37m0.10% CN¥244.0m
Tyche Shi
Head of Investor Relations Centerno datano datano data
Ying Shen
General Manager of Human Resources Departmentno datano datano data
Guangjian Wang
Senior VP & Executive Director0.33yrno data0.078% CN¥181.2m
Lei Zhang
Company Secretary4.92yrsno datano data
Ruoxiang Hu
Vice Presidentno datano datano data
Xizhen Su
VP & GM of Operation Department1.5yrsno datano data

4.9yrs

Average Tenure

46.5yo

Average Age

Experienced Management: 960's management team is considered experienced (4.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yajun Wu
Executive Chairperson of the Boardno dataCN¥10.13m44% CN¥102.6b
Mingxiao Shao
CEO & Executive Directorno dataCN¥62.68m0.48% CN¥1.1b
Yi Zhao
CFO & Executive Director5.33yrsCN¥34.37m0.10% CN¥244.0m
Guangjian Wang
Senior VP & Executive Director0.33yrno data0.078% CN¥181.2m
Bing Xiang
Independent Non-Executive Director10.67yrsCN¥354.00k0.00017% CN¥396.4k
Chi On Chan
Independent Non-Executive Director10.67yrsCN¥354.00kno data
Ming Zeng
Independent Non-Executive Director9.08yrsCN¥354.00k0.0067% CN¥15.6m
Frederick Peter Churchouse
Independent Non-Executive Director10.67yrsCN¥354.00k0.0074% CN¥17.3m

9.1yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 960's board of directors are considered experienced (9.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 960 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$233.188b
  • Shares outstanding: 5.99b
  • Website: https://www.longfor.com

Number of Employees


Location

  • Longfor Group Holdings Limited
  • CSC Fortune International Center
  • 18th Floor
  • Beijing
  • Beijing Province
  • 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 and commercial premises, and residential properties. The company’s Property Investment segment leases investment properties, including shopping malls and rental housing. Its Property Management and Related Services and Others segment provides property management and related services, as well as hotel operation and other 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/08 12:38
End of Day Share Price2020/07/08 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.