[ET Net News Agency, 22 January 2020] Daiwa Research raised its target price for
Longfor Group Holdings (00960) to HK$44.3 from HK$35.3 and maintained its "buy" rating.
The research house sees Longfor as one of the few defensive property names with
sustained sales growth and profitability, a strong financial position, and sizeable but
steadily growing rental income.
Daiwa projected the company to deliver a 15% contract sales growth in 2020 to CNY280bn,
on the back of a 60% sell-through rate (2019: 65%). Daiwa said Longfor has entered the
harvest period for its investment properties, as it expects to launch more than 30 malls
in the next five years. For 2020, Longfor is targeting 25% growth in its rental income
(including from rental apartments) to CNY7bn. (KL)