[ET Net News Agency, 29 March 2021] CLSA lifted its target price for Longfor Group
Holdings (00960) to HK$58 from HK$48 and maintained its "buy" rating.
The research house said a lower property sales margin dragged down Longfor's overall
gross profit margin by 4.3ppts to 29.3% in FY2020, but the increasing contribution from
its high-margin rental and property management business managed to narrow the net profit
margin compression to only 0.2ppts.
Combined with upbeat growth guidance, CLSA believes its new growth drivers offer high
earnings visibility. (KL)