Citi lowers LONGFOR GROUP's target price to 11.1 yuan, maintains "Buy" rating

Citigroup published a research report indicating that Longfor Group (00960.HK) had a core loss of RMB 1.7 billion last year, in line with the profit warning issued earlier. The annual dividend per share was RMB 0.07, a year-on-year decrease of 78%, with a payout ratio maintained at 30%. Despite recording losses in 2025, management remains committed to maintaining a 30% payout ratio.

The bank has lowered its earnings per share forecast for Longfor Group for 2026 to 2027 by 21% to 63%, and the target price has been reduced from HKD 13.8 to HKD 11.1, based on a 50% discount to net asset value (compared to a previous discount of 60%), to reflect the ongoing improvement in the balance sheet and the shift in the profit model towards recurring business, maintaining a "Buy" rating