# Longfor Properties (0960.HK)

Canonical: https://gigainvestors.com/s/0960.HK

Analysis as of: 2026-10-16T07:38:03.367Z. Financial observations: FY2006–FY2025.

Listing currency: HKD. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: HKD 4.75 per share; close as of 2026-10-15.

Estimated value: low HKD 16.18 per share, central HKD 17.78 per share, high HKD 19.91 per share. Buy at or below the central value HKD 17.78 per share. Valuation as of 2026-10-16T07:38:03.367Z; scenarios are not confidence intervals.

Expected annual return: 612.9% at the stated quote. About 612.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; HK 10-year bond 4.0% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.43×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.23×

- FY2017: 0.27×

- FY2018: 0.27×

- FY2019: 0.27×

- FY2020: 0.23×

- FY2021: 0.18×

- FY2022: 0.16×

- FY2023: 0.11×

- FY2024: 0.09×

- FY2025: 0.03×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 17.5pp below the typical margin (limit 4pp)

- ROIC, median of available years: 9.9%

- ROIC, second-lowest year: 2.4%

- Typical minus recent gross margin: 17.5 pp

- Typical gross margin (annual median): 27.2%

- Recent gross margin (lower of latest and 3-year median): 9.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 0.3%

- ROIC including acquisitions, ten-year median: 7.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 7.5%

- FY2017: 9.8%

- FY2018: 11.6%

- FY2019: 13.8%

- FY2020: 12.9%

- FY2021: 10.3%

- FY2022: 10.1%

- FY2023: 4.6%

- FY2024: 2.4%

- FY2025: 0.6%

### economics: fail

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 0.83×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 60B

- Net income, five-year total: CNY 72B

- Return on incremental invested capital: -3.2%

- Working capital / revenue, annual change: 0.9 pp

- Working capital / revenue, change between three-year averages: 14.0 pp

- Working capital / revenue, final three-year average: 190.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.87×

- FY2022: 0.92×

- FY2023: 0.80×

- FY2024: 0.78×

- FY2025: -1.27×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 9.8% vs 2.4%

- Per-share earnings: 1.57 to 1.57 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.5%

- Ordinary dilution, 5-year annual growth: 2.4%

- Market cap gain: CNY 881M

- Cumulative retained earnings: CNY 105B

- Diluted shares, 10-year annual growth: 1.5%

- Diluted shares, 5-year annual growth: 2.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 0.0%

- Per-share value change: CNY 0.00

- Per-share value, starting three-year median: CNY 1.57

- Per-share value, ending three-year median: CNY 1.57

- Buybacks concentrated in cheaper years (correlation): 0.59

- Average buyback yield: 0.6%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 18B

- Cumulative net income, 10 years: CNY 149B

- ROIC, first three-year median: 9.8%

- ROIC, last three-year median: 2.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 1.57

- FY2017: CNY 2.12

- FY2018: CNY 2.73

- FY2019: CNY 3.06

- FY2020: CNY 3.30

- FY2021: CNY 3.99

- FY2022: CNY 4.05

- FY2023: CNY 2.06

- FY2024: CNY 1.57

- FY2025: CNY 0.15

### accounting: pass

- Sloan accruals: -3.5%

- Receivables to sales index (DSRI): 1.16×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 2.3%

- Earnings backed by cash: Yes

- Operating cash / earnings: 21.41×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.03×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -10.5%

- FY2017: -16.2%

- FY2018: -9.3%

- FY2019: -2.4%

- FY2020: -2.2%

- FY2021: -0.5%

- FY2022: 1.8%

- FY2023: -2.9%

- FY2024: -2.9%

- FY2025: -3.5%

## Holders

## Price story

Down 90% since Jan 2022 · sales -23.7%

Story as of 2026-10-16T10:00:09.706Z; price observation 2026-10-15.

Price needs cash profits to shrink 68.8% a year for ten years

### Sales · FY2024–2025

sales -23.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 55B 

- FY2017: CNY 72B 

- FY2018: CNY 116B 

- FY2019: CNY 151B 

- FY2020: CNY 185B 

- FY2021: CNY 223B 

- FY2022: CNY 251B 

- FY2023: CNY 181B 

- FY2024: CNY 127B 

- FY2025: CNY 97B 

### Gross margin · FY2025

gross margin 9.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 29.1% 

- FY2017: 33.9% 

- FY2018: 34.1% 

- FY2019: 33.6% 

- FY2020: 29.3% 

- FY2021: 25.3% 

- FY2022: 21.2% 

- FY2023: 16.9% 

- FY2024: 16.0% 

- FY2025: 9.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in real estate development; annual sales are CNY 97.3 billion.

- Source: https://eodhd.com/api/fundamentals/0960.HK.json#2025-12-31 (filed 2026-10-16T07:38:03.367Z); FY2025: revenue 97308631000; grossProfit 9434861000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 0960.HK: Longfor Group Holdings Limited, an investment holding company, engages in the property development, property operation, asset management, property management, and smart construction businesses in the People's Republic of China. The company operates through three segments: Property Development, Investment Property Operation, and Property Service. The Property Development segment develops and sells office and commercial premises, and residential properties. The Investment Property Operation segment leases investment properties, including shopping malls and rental housing. The Property Service segment provides property management and related services. It also owns hotel properties. The company was formerly known as Longfor Properties Co. Ltd. and changed its name to Longfor Group Holdings Limited in June 2018. Longfor Group Holdings Limited was founded in 1993 and is headquartered in Beijing, China.

### Why customers stay

Margins ranged from 9.7% to 16.9% during 2023–25; it earns 9.9% on its capital.

- Source: https://eodhd.com/api/fundamentals/0960.HK.json#2023-12-31 (filed 2026-10-16T07:38:03.367Z); FY2023: grossProfit / revenue = 16.9%.

- Source: https://eodhd.com/api/fundamentals/0960.HK.json#2024-12-31 (filed 2026-10-16T07:38:03.367Z); FY2024: grossProfit / revenue = 16%.

- Source: https://eodhd.com/api/fundamentals/0960.HK.json#2025-12-31 (filed 2026-10-16T07:38:03.367Z); FY2025: grossProfit / revenue = 9.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:03.367Z); 10-year return on capital observations [[2016,0.07465324403041193],[2017,0.09823121420923625],[2018,0.11626396093627621],[2019,0.13841963938242388],[2020,0.12881584316862915],[2021,0.10278572242435338],[2022,0.1007237609159221],[2023,0.046326336253111285],[2024,0.02365251963909423],[2025,0.006303996590729388]]; median 0.09947748756257918. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back CNY 77 million of shares.

- Source: https://eodhd.com/api/fundamentals/0960.HK.json#2016-12-31 (filed 2026-10-16T07:38:03.367Z); FY2016: growth capex 0; upkeep 42392000; owner earnings 9156816000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/0960.HK.json#2017-12-31 (filed 2026-10-16T07:38:03.367Z); FY2017: growth capex 97336682.00851387; upkeep 92170317.99148613; owner earnings 12535113682.008514. Growth capex / owner earnings = 0.007765121599831994.

- Source: https://eodhd.com/api/fundamentals/0960.HK.json#2018-12-31 (filed 2026-10-16T07:38:03.367Z); FY2018: growth capex 461581145.62255; upkeep 2202378854.37745; owner earnings 14257176145.622551. Growth capex / owner earnings = 0.03237535546366042.

- Source: https://eodhd.com/api/fundamentals/0960.HK.json#2019-12-31 (filed 2026-10-16T07:38:03.367Z); FY2019: growth capex 55843000; upkeep 142321000; owner earnings 16085368600. Growth capex / owner earnings = 0.0034716643049137216.

- Source: https://eodhd.com/api/fundamentals/0960.HK.json#2020-12-31 (filed 2026-10-16T07:38:03.367Z); FY2020: growth capex 568754779.3492562; upkeep 296419220.65074384; owner earnings 17221316979.349255. Growth capex / owner earnings = 0.033026206998644295.

- Source: https://eodhd.com/api/fundamentals/0960.HK.json#2021-12-31 (filed 2026-10-16T07:38:03.367Z); FY2021: growth capex 45692000; upkeep 488605000; owner earnings 20640148000. Growth capex / owner earnings = 0.0022137438161780624.

- Source: https://eodhd.com/api/fundamentals/0960.HK.json#2022-12-31 (filed 2026-10-16T07:38:03.367Z); FY2022: growth capex 0; upkeep 302253000; cash acquisitions 4911143000; owner earnings 22380813935.517307. Growth capex plus acquisitions / owner earnings = 0.2194354063328432.

- Source: https://eodhd.com/api/fundamentals/0960.HK.json#2023-12-31 (filed 2026-10-16T07:38:03.367Z); FY2023: growth capex 0; upkeep 849792000; cash acquisitions 1178422000; owner earnings 10343473155.905407. Growth capex plus acquisitions / owner earnings = 0.11392904319833833.

- Source: https://eodhd.com/api/fundamentals/0960.HK.json#2024-12-31 (filed 2026-10-16T07:38:03.367Z); FY2024: growth capex 0; upkeep 336627000; cash acquisitions 462488000; owner earnings 8083184400.795558. Growth capex plus acquisitions / owner earnings = 0.05721606449488908.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:03.367Z); Dividend observations: [[2016,2083332000],[2017,2739175000],[2018,4489081000],[2019,5893586000],[2020,7180794000],[2021,8670742000],[2022,5512043000],[2023,1762222000],[2024,1166021000],[2025,656827000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/0960.HK.json#2025-12-31 (filed 2026-10-16T07:38:03.367Z); FY2025: cash repurchases 77007994 CNY.

### Are managers owners

Insiders own 67.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 0960.HK SharesStats.PercentInsiders = 67.24 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 68.8% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:03.367Z); Ten-year compound average after fade. Initial solved rate -0.8457535432539847. Price 4.75; FX 1.1727222788982186; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.523433935139818 → FY2025 -0.1911389128061552. Closing-price date 2026-10-15.

## Monthly share-price history (HKD per share)

- 2016-10: HKD 10.30 per share

- 2016-11: HKD 9.97 per share

- 2016-12: HKD 9.84 per share

- 2017-01: HKD 11.22 per share

- 2017-02: HKD 12.42 per share

- 2017-03: HKD 12.78 per share

- 2017-04: HKD 13.48 per share

- 2017-05: HKD 15.86 per share

- 2017-06: HKD 16.78 per share

- 2017-07: HKD 19.62 per share

- 2017-08: HKD 18.80 per share

- 2017-09: HKD 19.70 per share

- 2017-10: HKD 18.22 per share

- 2017-11: HKD 18.34 per share

- 2017-12: HKD 19.58 per share

- 2018-01: HKD 25.55 per share

- 2018-02: HKD 22.60 per share

- 2018-03: HKD 24.00 per share

- 2018-04: HKD 23.70 per share

- 2018-05: HKD 23.50 per share

- 2018-06: HKD 21.15 per share

- 2018-07: HKD 22.05 per share

- 2018-08: HKD 21.80 per share

- 2018-09: HKD 20.20 per share

- 2018-10: HKD 19.04 per share

- 2018-11: HKD 22.00 per share

- 2018-12: HKD 23.40 per share

- 2019-01: HKD 24.25 per share

- 2019-02: HKD 23.30 per share

- 2019-03: HKD 27.65 per share

- 2019-04: HKD 28.90 per share

- 2019-05: HKD 28.75 per share

- 2019-06: HKD 29.45 per share

- 2019-07: HKD 29.20 per share

- 2019-08: HKD 27.95 per share

- 2019-09: HKD 29.30 per share

- 2019-10: HKD 32.60 per share

- 2019-11: HKD 32.05 per share

- 2019-12: HKD 36.50 per share

- 2020-01: HKD 33.10 per share

- 2020-02: HKD 36.05 per share

- 2020-03: HKD 37.75 per share

- 2020-04: HKD 39.25 per share

- 2020-05: HKD 35.10 per share

- 2020-06: HKD 36.85 per share

- 2020-07: HKD 38.30 per share

- 2020-08: HKD 41.05 per share

- 2020-09: HKD 43.50 per share

- 2020-10: HKD 42.35 per share

- 2020-11: HKD 50.80 per share

- 2020-12: HKD 45.40 per share

- 2021-01: HKD 43.85 per share

- 2021-02: HKD 46.00 per share

- 2021-03: HKD 51.50 per share

- 2021-04: HKD 48.45 per share

- 2021-05: HKD 45.40 per share

- 2021-06: HKD 43.50 per share

- 2021-07: HKD 36.25 per share

- 2021-08: HKD 33.70 per share

- 2021-09: HKD 35.90 per share

- 2021-10: HKD 37.80 per share

- 2021-11: HKD 37.00 per share

- 2021-12: HKD 36.70 per share

- 2022-01: HKD 46.50 per share

- 2022-02: HKD 41.80 per share

- 2022-03: HKD 40.30 per share

- 2022-04: HKD 39.00 per share

- 2022-05: HKD 39.15 per share

- 2022-06: HKD 37.05 per share

- 2022-07: HKD 26.20 per share

- 2022-08: HKD 25.60 per share

- 2022-09: HKD 22.55 per share

- 2022-10: HKD 10.00 per share

- 2022-11: HKD 23.55 per share

- 2022-12: HKD 24.30 per share

- 2023-01: HKD 25.90 per share

- 2023-02: HKD 22.40 per share

- 2023-03: HKD 22.15 per share

- 2023-04: HKD 21.35 per share

- 2023-05: HKD 15.06 per share

- 2023-06: HKD 19.04 per share

- 2023-07: HKD 20.75 per share

- 2023-08: HKD 16.52 per share

- 2023-09: HKD 14.08 per share

- 2023-10: HKD 11.38 per share

- 2023-11: HKD 13.84 per share

- 2023-12: HKD 12.50 per share

- 2024-01: HKD 8.61 per share

- 2024-02: HKD 9.88 per share

- 2024-03: HKD 11.06 per share

- 2024-04: HKD 11.80 per share

- 2024-05: HKD 12.30 per share

- 2024-06: HKD 10.72 per share

- 2024-07: HKD 10.16 per share

- 2024-08: HKD 8.81 per share

- 2024-09: HKD 15.04 per share

- 2024-10: HKD 12.62 per share

- 2024-11: HKD 10.92 per share

- 2024-12: HKD 10.00 per share

- 2025-01: HKD 9.82 per share

- 2025-02: HKD 10.66 per share

- 2025-03: HKD 9.81 per share

- 2025-04: HKD 10.44 per share

- 2025-05: HKD 9.83 per share

- 2025-06: HKD 9.26 per share

- 2025-07: HKD 9.79 per share

- 2025-08: HKD 10.58 per share

- 2025-09: HKD 11.88 per share

- 2025-10: HKD 9.61 per share

- 2025-11: HKD 9.72 per share

- 2025-12: HKD 8.56 per share

- 2026-01: HKD 10.30 per share

- 2026-02: HKD 9.95 per share

- 2026-03: HKD 7.55 per share

- 2026-04: HKD 8.02 per share

- 2026-05: HKD 7.85 per share

- 2026-06: HKD 5.98 per share

- 2026-07: HKD 6.86 per share

- 2026-08: HKD 6.31 per share

- 2026-09: HKD 5.70 per share

- 2026-10: HKD 4.75 per share

## Annual estimated value (HKD per share)

- FY2016: low HKD 23.48 per share, central HKD 26.26 per share, high HKD 29.96 per share

- FY2017: low HKD 38.58 per share, central HKD 52.99 per share, high HKD 61.38 per share

- FY2018: low HKD 60.33 per share, central HKD 82.56 per share, high HKD 95.51 per share

- FY2019: low HKD 78.66 per share, central HKD 107.47 per share, high HKD 124.25 per share

- FY2020: low HKD 74.07 per share, central HKD 99.69 per share, high HKD 114.61 per share

- FY2021: low HKD 79.91 per share, central HKD 107.12 per share, high HKD 122.96 per share

- FY2022: low HKD 71.74 per share, central HKD 98.32 per share, high HKD 113.80 per share

- FY2023: low HKD 42.18 per share, central HKD 46.92 per share, high HKD 53.22 per share

- FY2024: low HKD 27.54 per share, central HKD 30.58 per share, high HKD 34.64 per share

- FY2025: low HKD 16.18 per share, central HKD 17.78 per share, high HKD 19.91 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.