Longfor Group Holdings Ltd. (960) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

China Overseas Land & Investment Ltd.

China Resources Land Ltd.

China Resources Mixc Lifestyle Services Ltd.

Sun Hung Kai Properties Ltd.

Longfor Group Holdings Ltd.

CK Asset Holdings Ltd.

Wharf Real Estate Investment Co. Ltd.

Henderson Land Development Co. Ltd.

Sino Land Co. Ltd.

Swire Properties Ltd.

KE Holdings, Inc.

Why is Longfor Group Holdings Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 11.92%

The company has declared Negative results for the last 5 consecutive quarters

ROCE(HY) Lowest at 4.78%
DIVIDEND PER SHARE(HY) Lowest at HKD 1.34
INTEREST COVERAGE RATIO(Q) Lowest at 926.36

With ROE of 10.41%, it has a Attractive valuation with a 0.42 Price to Book Value

Over the past year, while the stock has generated a return of -23.80%, its profits have fallen by -40.7%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -23.80% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Longfor Group Holdings Ltd. should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Realty)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Longfor Group Holdings Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Longfor Group Holdings Ltd.

-100.0%

2.90

36.87%

Hang Seng Hong Kong

8.25%

0.41

19.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.71%

EBIT Growth (5y)

-23.83%

EBIT to Interest (avg)

34.74

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

36.94%

Dividend Payout Ratio

20.35%

Pledged Shares

Institutional Holding

0.03%

ROCE (avg)

70.46%

ROE (avg)

11.92%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.42

EV to EBIT

1.55

EV to EBITDA

1.50

EV to Capital Employed

0.17

EV to Sales

0.15

PEG Ratio

Dividend Yield

0.04%

ROCE (Latest)

11.00%

ROE (Latest)

10.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 83.82 %

INVENTORY TURNOVER RATIO(HY)

Highest at 0.53 times

-13What is not working for the Company

ROCE(HY)

Lowest at 4.78%

DIVIDEND PER SHARE(HY)

Lowest at HKD 1.34

INTEREST COVERAGE RATIO(Q)

Lowest at 926.36

DIVIDEND PAYOUT RATIO(Y)

Lowest at 15.46%

RAW MATERIAL COST(Y)

Grown by 45.88% (YoY

CASH AND EQV(HY)

Lowest at HKD 48,932.48 MM

PRE-TAX PROFIT(Q)

Lowest at HKD 4,162.83 MM

NET PROFIT(Q)

Lowest at HKD 1,565.63 MM

EPS(Q)

Lowest at HKD 0.51

Here's what is working for Longfor Group Holdings Ltd.

Debt-Equity Ratio

Lowest at 83.82 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 0.53 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

At HKD 187.74 MM has Grown at 24.61%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (HKD MM)

Here's what is not working for Longfor Group Holdings Ltd.

Interest Coverage Ratio

Lowest at 926.36

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Dividend per share

Lowest at HKD 1.34 and Fallen

In each year in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (HKD)

Pre-Tax Profit

Lowest at HKD 4,162.83 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD 1,565.63 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

Net Profit

Fallen at -55.46%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

EPS

Lowest at HKD 0.51

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Cash and Eqv

Lowest at HKD 48,932.48 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Dividend Payout Ratio

Lowest at 15.46%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 45.88% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales