Longfor Group Holdings Limited (0960.HK) stock analysis

In our weekly check, Longfor Group Holdings Limited is graded D (A to F). Of 24 checks on debt, profit, cash flow and trend: 9 pass, warnings: 4, red flags: 11.

About Longfor Group Holdings Limited

Longfor Group Holdings Limited is a Real Estate company (Real Estate - Development) based in China, listed on HKSE as 0960.HK.

What our checks show for 0960.HK

Red flags

• Net debt is 42.8x a year of EBITDA (debt/equity 0.96). That limits room in a downturn and raises refinancing risk.
• Operating profit does not cover the interest bill (0.5x): interest is paid from cash or new debt.
• The net margin fell by 9.6 points over 5 years, to 1.1%: the company keeps less of each sale as profit.
• The gross margin fell by 15.6 points, to 9.7%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 12.9% a year.
• Revenue fell 27% a year over the last 3 years.
• The net margin is only 1.1%: little room if costs rise.
• The dividend takes 427% of profit: little cushion if profit falls.
• The stock has fallen as much as 92% from a peak. Would you have held through that?
• Beta 2.04: the stock usually moves more than the market, both up and down.
• Return on capital (ROCE) is only 0.1%.

Warning signs

• Earnings per share fell 66.7% a year over the last 3 years.
• Net profit fell 65.3% a year over the last 3 years.
• The price swings a lot: 46.2% annual volatility. Expect large ups and downs.
• The stock is still below its previous peak.

Strengths

• Operating cash flow is 21.41x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 44.3% a year over the next years.
• Analysts expect the net margin to improve by 3.7 points from today's 1.1%.
• Free cash flow is 22.4% of revenue: cash for dividends, buybacks or growth.
• Actively traded: about 26.8 million shares a day.
• Pay in shares is only 2.3% of free cash flow.

Similar companies

1908.HK · EMAARDEV.AE · 4300.SR · SAGA-B.ST · H78.SI

Questions

What grade does Longfor Group Holdings Limited (0960.HK) have?

In our weekly check, Longfor Group Holdings Limited is graded D (A to F). Of 24 checks on debt, profit, cash flow and trend: 9 pass, warnings: 4, red flags: 11. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 0960.HK stock?

This week's biggest flags for Longfor Group Holdings Limited: High debt, Weak interest cover, Margins falling. In total 15 of 24 checks show a warning or a red flag.

What does Longfor Group Holdings Limited do?

Longfor Group Holdings Limited is a Real Estate company (Real Estate - Development) based in China, listed on HKSE as 0960.HK.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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