LONGFOR GROUP (00960) has received consecutive increases in holdings from major shareholders and two directors, with a cumulative increase of nearly 5% in the past two days.

Recently, LONGFOR GROUP (00960) has successively received increase in holdings from major shareholders, chairman, and independent non-executive directors, with a total amount exceeding 25 million Hong Kong dollars. According to informed sources, on September 11, LONGFOR GROUP received an increase in holdings of 3 million shares from major shareholder and founder Wu Yajun, with a total amount of approximately 22.94 million Hong Kong dollars. According to the latest equity disclosure information from the Hong Kong Stock Exchange, on the same day, LONGFOR GROUP Chairman and CEO Chen Xu Ping increased his holdings by 200,000 shares, involving approximately 1.51 million Hong Kong dollars; on September 10, independent non-executive director Chen Zhi'an also increased his holdings by 100,000 shares, totaling 799,000 Hong Kong dollars. As of the closing on September 13, LONGFOR GROUP closed at 8.02 Hong Kong dollars, with a cumulative increase of 4.56% in the two trading days following the increase in holdings by the major shareholders and chairman. Information shows that LONGFOR GROUP is a leading company in the domestic real estate industry, with its main business covering development, operations, and services. It is considered one of the benchmarks for high-quality development in the domestic real estate industry. On August 23, LONGFOR GROUP released its mid-term performance data for 2024. According to the disclosure, in the first half of this year, LONGFOR GROUP achieved operating income of 46.86 billion yuan, achieving a core net profit of 4.75 billion yuan. Among them, the revenue from operations and services was 13.10 billion yuan, a year-on-year increase of 7.6%, and contributed to over 80% of the core net profit of the entire group. During the performance briefing, the Long For management stated that in the future, Longfor will achieve two transformations. The first is the transformation of the debt structure, using positive operating cash flow to reduce interest-bearing debt and using long-term operational property loans to repay short-term credit financing. These two fund loops will lower Longfor's debt level. The second is the transformation of income and profit, with operating income accounting for nearly 30% and profit accounting for over 80% in the first half of the year. It is expected that by the end of 2028, the proportion of operating income will exceed half, completing the transition of the business income structure from old to new dynamics. In response to this, HSBC stated that Longfor will reposition itself as a landlord, obtaining stable and continuously growing recurring income from investment property portfolios. This strategic transformation is unique to Longfor, and the new business model is beneficial for Longfor's long-term development, as its unique asset reserves will receive scarcity premiums. Recently, several securities firms have also held similar views and have given LONGFOR GROUP "buy" or "outperform market" ratings. Among them, Haitong stated that it is expected that LONGFOR GROUP's earnings per share for 2024 will be approximately 1.69 yuan, giving the company a valuation of 6-7 times earnings per share for 2024, corresponding to a reasonable value range of 11.00-12.84 Hong Kong dollars per share.