Longfor Group Holdings (SEHK:960) Reports Fresh Sales Figures, Is The Valuation Still Justified?

Fresh sales update puts Longfor Group Holdings in focus

Longfor Group Holdings (SEHK:960) has drawn fresh attention after reporting unaudited preliminary figures for June 2026 and the first half of the year, giving investors new data on contracted sales and revenue mix.

In June 2026, the group reported contracted sales of RMB2.88b, covering 299,000 sqm of gross floor area, with RMB1.90b of those sales and 209,000 sqm attributable to shareholders of the company.

For the six months to 30 June 2026, Longfor Group Holdings reported aggregated revenue from property operation and property service of about RMB13.70b, or RMB14.61b before tax. This provides a snapshot of activity in its non development segments.

Within this total, revenue from property operation was around RMB7.30b, or RMB7.82b before tax, while revenue from property service came in at approximately RMB6.40b, or RMB6.79b before tax. This highlights the contribution from recurring income streams.

See our latest analysis for Longfor Group Holdings.

At a share price of HK$6.3, Longfor Group Holdings has seen short term momentum soften, with the 30 day share price return down 28% and the 1 year total shareholder return declining 38.49%. This points to weaker sentiment despite the latest sales update.

If this sales update has you reassessing the sector, it could be a good moment to broaden your watchlist with 105 top founder-led companies

Given Longfor Group Holdings' recent share price slide and the fresh sales data, the real question now is whether the current valuation still compensates you for the risks or if the balance has shifted against new buyers.

Preferred P/E of 37.9x: Is it justified for Longfor Group Holdings?

On a simple snapshot, Longfor Group Holdings trades on a P/E of 37.9x at a share price of HK$6.3. The data describes this as expensive versus the Hong Kong real estate sector, yet still below the peer group average and well under the P/E level implied by the fair ratio estimate.

The P/E ratio compares the current share price to earnings per share. A higher multiple often reflects the market paying up today for expected future profits, while a lower multiple can point to more muted expectations or higher perceived risk.

For Longfor Group Holdings, that 37.9x P/E sits well above the Hong Kong real estate industry average of 8.9x. This suggests investors are currently paying a much higher price for each unit of reported earnings than they are for the sector overall. However, it is below the peer average of 52.2x that the data cites as a comparison group, and it also sits above the estimated fair P/E of 20.2x that the fair ratio model points to as a level the market could move toward if sentiment or earnings expectations reset.

Explore the SWS fair ratio for Longfor Group Holdings

Result: Price-to-Earnings of 37.9x (OVERVALUED)

However, the weak multi year shareholder returns and recent revenue decline for Longfor Group Holdings mean any disappointment on sales or margins could quickly pressure the current P/E.

Find out about the key risks to this Longfor Group Holdings narrative.

Another view on Longfor Group Holdings' valuation

While the P/E of 37.9x makes Longfor Group Holdings look expensive versus the Hong Kong real estate industry average of 8.9x and above the fair ratio level of 20.2x, it still sits below the 52.2x peer average. That gap leaves a mix of valuation risk and possible upside for investors to weigh.

For a closer look at what the market could be pricing in, including how the gap to the fair ratio might eventually close, See what the numbers say about this price — find out in our valuation breakdown.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Longfor Group Holdings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 215 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With sentiment clearly mixed around Longfor Group Holdings, now is the time to look through the numbers yourself and decide what really matters for you as an investor, then weigh both sides of the story with 3 key rewards and 3 important warning signs

Looking for more investment ideas beyond Longfor Group Holdings?

If Longfor Group Holdings has sharpened your focus on valuation and risk, you can broaden your opportunity set with a few targeted stock ideas.

• Scan for quality at a discount by reviewing companies our models highlight as 215 high quality undervalued stocks before the market potentially pays more attention.
• Strengthen the income side of your portfolio by assessing stocks identified as 474 dividend fortresses that may help support more consistent cash flows.
• Tighten your risk profile by studying companies featured in our 296 resilient stocks with low risk scores so you are not relying on one stock to carry your entire thesis.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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