---
title: "Goldman Sachs lowers Longfor Group's target price to 8.6 yuan, expects development business to remain under pressure"
type: "News"
locale: "zh-CN"
url: "https://longbridge.com/zh-CN/news/280968029.md"
description: "Goldman Sachs has lowered the target price for LONGFOR GROUP to HKD 8.6, expecting a core net loss of HKD 1.7 billion for the fiscal year 2025, mainly due to a loss of HKD 9.6 billion in development business. Although LONGFOR has achieved a de-leveraging milestone and has good cash flow management, the core earnings forecasts for the fiscal years 2026 to 2028 have been downgraded, with average revenue forecasts reduced by 17%. Goldman Sachs maintains a \"Neutral\" rating on LONGFOR"
datetime: "2026-03-30T06:27:44.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/280968029.md)
  - [en](https://longbridge.com/en/news/280968029.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/280968029.md)
---

> 支持的语言: [English](https://longbridge.com/en/news/280968029.md) | [繁體中文](https://longbridge.com/zh-HK/news/280968029.md)


# Goldman Sachs lowers Longfor Group's target price to 8.6 yuan, expects development business to remain under pressure

Goldman Sachs published a research report indicating that Longfor Group (00960.HK) is expected to record a core net loss of RMB 1.7 billion for the fiscal year 2025, in line with the profit warning, primarily due to a core net loss of RMB 9.6 billion in its development business (DP), with a core profit margin of negative 14%, reflecting a sharp decline in revenue and gross margin. The firm believes that Longfor has achieved a milestone in deleveraging and expects that the debt maturity pressure in 2026 and beyond will be well controlled. Cash flow management also remains constructive, with net operating cash flow (including capital expenditures) reaching RMB 5.8 billion, marking the third consecutive year of positive inflow, mainly benefiting from strict compression of land capital expenditures.

The firm has lowered its core profit forecast for Longfor for the fiscal year 2026 to a net loss of RMB 500 million, while the core profit forecasts for 2027 and 2028 have been revised down to RMB 2.2 billion and RMB 3.3 billion, mainly due to a reduction in contracted sales forecasts; it has also lowered the total revenue forecast for the fiscal years 2026 to 2028 by an average of 17%, primarily due to a decrease in revenue recognition from the development business; the gross margin forecast for the development business in fiscal year 2026 has been revised down to negative 9%; it has also expanded the loss forecast for joint ventures and associates for the fiscal years 2026 to 2028, while correspondingly lowering the minority interest payments to reflect the impact of ongoing losses from development projects.

Goldman Sachs has lowered Longfor's target price from HKD 9.9 to HKD 8.6, maintaining a "Neutral" rating

### 相关股票

- [LONGFOR GROUP (00960.HK)](https://longbridge.com/zh-CN/quote/00960.HK.md)

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