[ET Net News Agency, 9 March 2021] J.P. Morgan lifted its target price for Longfor
Group (00960) to HK$59 from HK$53 and maintained its "overweight" rating.
The research house said Longfor's 1H 2020 result was solid. Margin squeeze was offset by
scale expansion, and with strong operation on the IP (investment property) business, core
net profit was up 20%, the strongest among defensive names.
Looking ahead, with a more stable and visible policy environment in the property space,
Longfor is ready for another leg of growth, JPM said. It expects Longfor's DP (development
property) can expand at 20% CAGR in the next three years by expanding its footprint into
PRD (Pearl River Delta) and Central China, and its IP rental can grow at 35% CAGR with
projects in the pipeline. (KL)