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<Research>Guosheng Securities Downgrades LONGFOR GROUP (00960.HK) to Overweight; Public Bond Maturity Pressure Low in 2024
Recommend 5 Positive 10 Negative 7 |
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Guosheng Securities commented in a report that LONGFOR GROUP (00960.HK) remained financially sound, with less pressure on public debt maturity this year. At the end of last year, the company's interest-bearing liabilities amounted to RMB192.65 billion, a YoY decrease of 7.4%, of which short-term interest-bearing liabilities amounted to RMB26.84 billion. The amount of public bonds maturing this year is RMB6 billion, concentrated in May, July-August and December. According to the report, LONGFOR had RMB60.42 billion cash on hand at the end of last year, and the pressure of short-term debt repayment was relatively light. In terms of financing costs, the company's consolidated financing costs rose slightly by 0.14 ppts to 4.24% last year, remaining stable overall. During the period, the company successfully issued two medium-term notes with a combined size of RMB2.3 billion under the guarantee of China Bond Insurance. The developer's cash to short-term debt ratio was 2.25x last year, or 1.36x after excluding pre-sale regulatory funds and restricted funds. Considering the current downturn of the industry, Guosheng adjusted its profit forecast on LONGFOR, estimating that the company's revenue in 2024/25/26 will be RMB171.52 billion, RMB164.15 billion and RMB158.64 billion respectively, and net profit will be RMB12.47 billion, RMB12.34 billion and RMB12.51 billion respectively. The corresponding EPS would be RMB1.84, RMB1.82 and RMB1.85, corresponding to 4.9x, 5x and 4.9x P/E ratio. The broker also downgraded LONGFOR from Buy to Overweight. AAStocks Financial News |
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