Longfor Group Holdings (SEHK:960) Moved After Its Latest Update, What Is Drawing Attention?

Longfor Group Holdings (SEHK:960) has released unaudited August 2026 sales figures, giving investors fresh visibility into contracted sales activity and revenue from its property development, operation, and service businesses.

Against this operational update, Longfor Group Holdings is trading at HK$5.68, with the share price down 11.87% over the past 30 days and 19.09% over 90 days, while the 1-year total shareholder return has declined 51.03%, indicating that recent momentum has been fading despite the latest sales data.

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Those share price losses are steep for Longfor Group Holdings given fresh data on contracted sales and service revenue. Is the slide mainly about the underlying business, or is it a reset in sentiment that has overshot what the numbers imply?

Preferred Price-to-Sales of 0.4x for Longfor Group Holdings: Is it justified?

On the numbers given, Longfor Group Holdings screens as inexpensive on revenue, with a P/S of 0.4x while its shares last closed at HK$5.68. The stock is also flagged as trading at good value compared with both its peers and the wider Hong Kong real estate sector.

The P/S ratio compares the market value of the equity to annual sales, which can be useful when a group is currently loss making or earnings are volatile. For a developer and property operator like Longfor Group Holdings, this points you toward what the market is willing to pay for each HK$1 of reported revenue across its development, investment property and service activities.

Here the discount is sharp. The business is assessed as "good value" against the Hong Kong Real Estate industry average P/S of 0.6x, and even more so against a peer average of 3.8x. It is also described as good value relative to an estimated fair P/S of 0.6x, which implies the current multiple is well below a level the market could move toward if sentiment and fundamentals more closely aligned.

Explore the SWS fair ratio for Longfor Group Holdings..

Result: Price-to-sales of 0.4x (UNDERVALUED)

Still, the annual revenue decline and current net loss for Longfor Group Holdings leave little room for execution missteps if sentiment toward the sector weakens again.

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

Another view on Longfor Group Holdings using our DCF model

While the low 0.4x P/S suggests that Longfor Group Holdings looks inexpensive on revenue, the SWS DCF model presents a different perspective. On that framework, the shares at HK$5.68 trade well below an estimated future cash flow value of HK$13.69, which indicates potential undervaluation.

Both approaches point in the same direction, yet they rely on very different inputs. The gap between the market price and HK$13.69 raises a practical question for investors: Is this primarily a risk that future cash flows disappoint, or an opportunity if current pessimism is overstated?

Look into how the SWS DCF model arrives at its fair value.

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 179 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

Sentiment around Longfor Group Holdings looks conflicted. Move quickly, review the underlying metrics and form your own take by weighing the 3 key rewards and 1 important warning sign.

Looking for more investment ideas beyond Longfor Group Holdings?

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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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