[ET Net News Agency, 14 December 2020] Goldman Sachs raised its target price for
Longfor Group (00960) to HK$50.6 from HK$48.4 and maintained its "buy" rating.
Longfor has completed the share placement of 50mn new shares at HK$47 per share. The
research house updated its model to reflect the increase in the total issued share count
to 6,153mn. As a result, its 2020-22 EPS estimates decreased by an average of 1% to
Rmb3.10/3.71/4.23, respectively.
After factoring in its new Rmb/HK$ exchange rate (1.17 versus the previous 1.11),
Goldman revised up its end-2020 NAV to HK$59.5. It noted that execution slippage in a
stage of aggressive expansion may trigger product quality deterioration, margin erosion,
and reputation risk. (KL)