Date of Report

October 1, 2024

Broker Name

CGS International Securities

Company Overview

Longfor is a prominent player in the real estate sector in China, engaged in property development, investment, and management services.

Current Market Position

• Current Market Capitalization: HK$ 13.3 billion
• Current Price: HK$ 10.8
• Target Price: HK$ 15.0

Analyst Recommendation

• Recommendation: Add
• Expected Return: The stock’s total return is anticipated to exceed 10% over the next 12 months.

Financial Projections

• Forward P/E (2024): 9.0
• Forward P/E (2025): 9.1

Strategic Outlook

The report highlights that Longfor is well-positioned to benefit from recent government policy initiatives aimed at revitalizing the real estate market in China. With a focus on increasing domestic demand and improving housing affordability, Longfor’s strategic developments are expected to align well with these policies, fostering growth opportunities.

Risks and Considerations

Investors should be cautious of potential risks such as regulatory changes affecting the real estate sector, fluctuations in market demand, and economic conditions that may impact property sales and development.

Summary

Longfor is presented as a strong investment opportunity within the real estate sector, supported by favorable government policies and a solid market presence. The anticipated growth in the housing market positions Longfor for significant success, making it an attractive option for investors.