Longfor Group Holdings (0960.HK)
Real Estate · HKEX · Hong Kong
Fundamentals
Valuation and ratings
Longfor Group Holdings trades at HK$6.85, which is 96% below the HK$13.42 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 21 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 35.9 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Longfor Group Holdings
Longfor Group Holdings Limited, an investment holding company, engages in the property development, property operation, asset management, property management, and smart construction businesses in the People's Republic of China. The company operates through three segments: Property Development, Investment Property Operation, and Property Service. The Property Development segment develops and sells office and commercial premises, and residential properties. The Investment Property Operation segment leases investment properties, including shopping malls and rental housing. The Property Service segment provides property management and related services. It also owns hotel properties. 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, China.
0960.HK passes 4 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Longfor Group Holdings (0960.HK) undervalued?
Against our discounted cash flow estimate of HK$13.42, 0960.HK at HK$6.85 is 96% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is 0960.HK's P/E ratio?
0960.HK trades at 35.9 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.