Morningstar: Longfor Properties (01113.HK) property sales are improving, providing support for earnings; the stock valuation is reasonable

Morningstar stock analyst Jeff Zhang said Longfor Group (01113.HK) +0.920 (+2.020%) recorded short selling of $26.2 million; the ratio was 24.975%. In the first half of this year, it reportedly continued to sell spot units one after another, including “Ying Tian” at Halfway Bay old Tao. It was also reported that its earlier Phase 2 of the Cheung Kong Group Centre on Harcourt Road in Central previously recorded two leasing transactions, with rents reaching $120 to $130 per square foot. He said that an improvement in demand in Hong Kong’s residential market and a rebound in home prices will support Longfor’s property sales and gross margin performance in the first half of the year. The company expects that new projects in Kai Tak and Yuen Long are likely to be launched soon, further driving revenue growth.

The firm said the leasing progress of Phase 2 of Cheung Kong Group Centre is consistent with the downward trend in office vacancy rates in Hong Kong’s core commercial districts. As competition in the market remains intense, it expects Phase 2 of the Cheung Kong Group Centre will take longer to catch up with nearby projects in terms of occupancy rates. Meanwhile, recurring income from the group’s property management, utilities and infrastructure businesses will also continue to provide support for earnings. After selling UK Power Networks, it expects Longfor will continue to seize opportunities to recoup capital from overseas infrastructure investments.

Related content 《Broker Commentary》UBS: Longfor (01113.HK)’s contribution from European infrastructure is underestimated; special dividend likely in the first half. Morningstar maintained its estimate of Longfor’s fair value per share at 45, with long-term forecasts largely unchanged. The current-price valuation is reasonable, as the expected improvement in property development gross margin appears to have largely been reflected in the stock price performance. (gc/da) (Hong Kong stock quotes are delayed by at least fifteen minutes. Short-selling data as of 2026-07-14 16:25.)