Hong Kong's Longfor Group H1 revenue falls on weak property sales

Longfor group

28/08/2026 05:19

Overview
China property developer's 1H2026 revenue fell sharply yr/yr 
Net income attributable to owners declined yr/yr for 1H2026
Company did not declare interim dividend for 1H2026

Outlook
Company did not provide specific financial guidance for the current quarter or full year

Result Drivers
PROPERTY DEVELOPMENT PRESSURES - Co said declining new home sales and persistent inventory pressures weighed on property development segment, prompting accelerated destocking and asset revitalization
STEADY PROPERTY OPERATION & SERVICE - Property operation and property service segments achieved steady growth, supported by strong occupancy rates and increased rental income
FINANCIAL DISCIPLINE - Co reduced interest-bearing debt, maintained positive operating cash flow, and further lowered average financing cost to 3.36%

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
RMB 39.80 bln
 
H1 Net Income Attributable
 
RMB 1.96 bln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the real estate rental, development & operations peer group is "buy"
Wall Street's median 12-month price target for Longfor Group Holdings Limited is HK$10.45, about 56.4% above its August 27 closing price of HK$6.68
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads
Aug 26 - China's Seazen Group H1 revenue falls on lower property sales
Aug 27 - China's JY Grandmark H1 revenue falls 71%, net loss widens on lower property deliveries
Aug 27 - Hong Kong home prices soft in July, first decline in 16 months

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Press Release s3://eap-prd-eu-west-1-source-content/eap_feed_proxy/fingerpost/HKSW/2026-08-28/260d5a75-9792-42fa-bd7b-4a154898490f.file
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)